Quess Q1 revenue up 52%, ropes in Accenture for growth
The business services company’s EBITDA margin contracted 59 basis points to 5.21 per cent.
By Jochelle Mendonca, ET Bureau |
BENGALURU: Quess Corp’s first quarter revenue rose 52 per cent driven by acquisitions and the company has hired consulting firm Accenture to identify ways to boost its margins.
The business services company’s EBITDA margin contracted 59 basis points to 5.21 per cent, hurt by a seasonality impact in the Manipal Integrated Services business, as summer vacations impacted the demand for services. Investments in its technology vertical also impacted profitability.
“We’ve hired Accenture to identify costs that can be reduced and to introduce service delivery mechanisms to improve productivity,” Ajit Isaac, chairman of Quess Corp, told ET in an interview. He added that it would take a few months to identify the costs and then begin to see results.
Isaac added that the company’s order book was ‘looking good’ and would support its growth plans for the year. For the quarter ended June 30, revenue rose 52 per cent to Rs 1,968 crore. On an organic basis, revenue rose 28 per cent driven by growth in the people business. The company’s profit after tax rose 19 per cent year-over-year to Rs 54 crore. The firm’s target is to grow to $100 million in EBITDA by 2020-end.
The business services company’s EBITDA margin contracted 59 basis points to 5.21 per cent, hurt by a seasonality impact in the Manipal Integrated Services business, as summer vacations impacted the demand for services. Investments in its technology vertical also impacted profitability.
“We’ve hired Accenture to identify costs that can be reduced and to introduce service delivery mechanisms to improve productivity,” Ajit Isaac, chairman of Quess Corp, told ET in an interview. He added that it would take a few months to identify the costs and then begin to see results.
Isaac added that the company’s order book was ‘looking good’ and would support its growth plans for the year. For the quarter ended June 30, revenue rose 52 per cent to Rs 1,968 crore. On an organic basis, revenue rose 28 per cent driven by growth in the people business. The company’s profit after tax rose 19 per cent year-over-year to Rs 54 crore. The firm’s target is to grow to $100 million in EBITDA by 2020-end.
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