Quess Corp (QUESS) Q4 18/19 earnings summary

Executive summary

• FY19 consolidated revenue rose 38% YoY to ₹8,527 crore and EBITDA grew 31% to ₹465 crore; PAT fell to ₹257 crore from ₹310 crore.

• Growth reflected 24% organic revenue expansion and 22% headcount growth to 318,000; acquired businesses including Conneqt and Vedang contributed to EBITDA growth.

• Cash conversion improved, with operating cash flow at ₹202 crore versus ₹109 crore and EBITDA-to-OCF conversion at 43% versus 31%.

Financial highlights

• Consolidated revenue ₹8,526.99 crore, up 38% YoY; EBITDA ₹464.58 crore, up 31%; EBITDA margin 5.45% versus 5.75%.

• Consolidated PAT ₹256.55 crore versus ₹309.76 crore; PAT margin 3.01% versus 5.02%; diluted EPS ₹17.51 versus ₹21.82.

• PBT was ₹289.45 crore versus ₹261.46 crore; FY18 PAT included a one-time ₹56.51 crore cumulative tax benefit for prior years.

• Finance costs rose 52% to ₹114 crore, including a non-operating, non-cash NCI put-option charge of ₹26 crore versus ₹10 crore.

Outlook and guidance

• Long-term ambition: compound EBITDA at 20% p.a.; maintain debt-to-EBITDA around 2x while pursuing organic growth and friendly acquisitions.

• FY20 priorities include organizing offerings into Workforce Management, Operating Asset Management and Tech Services platforms.

• Training capacity target is 100,000 students annually; planned expansion includes B2B and B2C skilling, alongside existing B2G offerings.

• Focus areas include BPM customer additions and margin expansion, professional staffing niche skills and geography, and improving Monster products and brand.