Quess Corp (QUESS) Q4 16/17 earnings summary

Executive summary

• FY17 revenue rose 21% to ₹4,157 crore, EBITDA increased 47% to ₹223 crore and PAT grew 40% to ₹113 crore; margins expanded year over year.

• Headcount increased 54% to 189,200; six acquisitions and investments expanded service capabilities and geographies, with full financial consolidation expected in FY18.

Financial highlights

• Consolidated revenue ₹4,157.36 crore, up 21% YoY; EBITDA ₹222.80 crore, up 47%, with margin at 5.4% versus 4.4%.

• PAT before minority interest ₹113.44 crore, up 40%; PAT margin 2.7% versus 2.4%. Profit for the year ₹108.33 crore.

• Diluted EPS ₹9.10, up 29% from ₹7.03; cash flow from operations ₹74 crore versus negative ₹50 crore, and free cash flow ₹36 crore versus negative ₹72 crore.

• Consolidated cash and bank balances were ₹460 crore; employee count reached 189,200, up 54% YoY.

Outlook and guidance

• FY18 outlook was positive amid expected consumption recovery and normalisation of liquidity; financial consolidation of acquisitions was expected to commence in full form in FY18.

• Plans included scaling existing operations, developing infrastructure, hospitality and healthcare offerings, and expanding existing services into Southeast Asia and emerging markets.

• Long-term principles target 20% annual book-value compounding and debt/EBITDA near 2x, with emphasis on institution-building and organic growth alongside acquisitions.