Quess Corp (QUESS) Q4 21/22 earnings summary

Executive summary

• FY22 delivered record revenue and profit as staffing and customer lifecycle management recovered; annual revenue reached ₹136.92bn and consolidated PAT ₹2.51bn.

• Headcount rose to 437,000 from 363,000; 700+ customers were added and cross-sell deals generated ₹5bn in annual contract value.

Financial highlights

• Consolidated revenue grew 26% YoY to ₹136.92bn; EBITDA rose 36% to ₹6.23bn and PAT to ₹2.51bn from ₹736.89m.

• Diluted EPS was ₹16.18 vs. ₹3.87; PBT reached ₹3.58bn vs. ₹1.85bn.

• Adjusted for the ₹450m extraordinary ECL provision cited by management, EBITDA was ₹6.68bn; reported EBITDA margin improved to 4.55% from 4.23%.

• Normalized EBITDA margin was 4.88% vs. 5.33%, reflecting lower-margin staffing mix and increased SG&A and digital investment.

Outlook and guidance

• FY25 EBITDA ambition is ₹15bn (~$200m); management targets ~20% CAGR across segments and ₹256.5bn revenue in its segment outlook, excluding Product Led Business.

• Long-term goals remain 20% ROE and 20% annual OCF growth; the FY23 ROE goal excludes Product Led Business.

• Management expects efficiency initiatives, new verticals, cross-selling and tighter collections to support EBITDA and cash generation growth.