Business services provider Quess Corp on Thursday said it expects 20 percent organic growth year-on-year (YoY) after it reported a 5.49 percent rise in consolidated net profit to Rs 65.03 crore for the quarter ended September 30, 2019.
In an interview to CNBC-TV18, Subrata Nag, Group chief executive officer said, “Q3 and Q4 are better quarters for us and therefore, we think the momentum is picking up.”
“Adding employees is a difficult prediction but whenever we add the numbers in Q1 and Q2, we get most of the benefits in the latter quarter. So that’s the good thing that will happen for us and help us in increasing our overall revenue and profitability and EBITDA,” Nag said.
On the margins front, he said, “Our target is to reach 8 percent margin in a certain amount of time. We are working towards. We reached our benchmark of more than 6 percent.”
“The business process management (BPM) segment, the Allsec Technologies and new acquisition are helping us to increase our margin to a large extent. Therefore, we would like to improve our productivity and efficiency in the technology which is 10 percent of margin and with the change of revenue mix, we will be able to reach 8 percent margin,” Nag added.
Further, he said, “In the last quarter, we had a debt of almost Rs 1,200 crore. In the July-August-September quarter, we reduced our debt by about Rs 325 crore. As on September 30, our gross debt was Rs 920 crore but our net is Rs 272 crore. Our aim is to reduce the debt further and a couple of quarters down the line, our aim to make Quess a net debt-free company.”
The company had posted a net profit of Rs 61.64 crore for the corresponding period of the previous fiscal, Quess Corp said in a BSE filing. The consolidated revenue from operations stood at Rs 2,650.25 crore for the quarter under consideration. It was Rs 2,091.71 crore for the same period a year ago