 "Ajit Isaac")
Integrated business service provider Quess Corp on Thursday said it will acquire stake in three companies -- Terrier Securities, Simpliance and Comtel Solutions -- helping it to offer increased services and expand the share of the wallet from its clients. These firms will help add Rs 750 crore in revenue and operating income of Rs 52 crore in this fiscal.
Quess' stock rose 6 per cent or Rs 35.80 to close at Rs 632.70 on the Bombay Stock Exchange on Thursday.
While Comtel Solutions will mark Quess' entry into the technology staffing domain in Singapore, India-based Terrier Security Services will be its maiden venture in the manned guarding and security solutions segment. With Comtel, Quess, which already has presence in Malaysia, Philippines and Sri Lanka, plans to improve its operations in the Asia Pacific region. Simpliance is a Bengaluru-based technology firm aimed at providing a comprehensive solution for meeting the labour compliance requirements of companies.
"...we have signed definitive agreements to acquire stakes in three ventures, each of which comes with a unique value proposition and places us in a unique position to address the demand opportunities in those segments," said Ajit Isaac, chief managing director and chief executive officer of Bengaluru-based Quess Corp in a statement.
Quess acquired 49 per cent in Terrier, which has a presence in 14 states with over 400 clients had reported a revenue of Rs 220 crore with a margin of 5 per cent in fiscal 2016. In Simpliance, Quess will invest Rs 2.5 crore for a 45 per cent stake that will help in technology development.
Quess took 64 per cent in Singapore's Comtel, which employs over 1,400 people and a revenue of Singapore Dollar 82 million.
Quess, which listed after its blockbuster IPO in July, said it posted a strong 65.9 per cent year-on-year jump in profits at Rs 30.10 crore for the quarter ended September. The company had posted a profit of Rs 18.16 crore during the same quarter last year.
Revenue grew 26.9 per cent year-on-year to Rs 1,018 crore from Rs 802 crore during the corresponding period last year. EBITDA (earnings before interest, taxes, depreciation, and amortization) margin improved 69 basis points to 5.4 per cent as against 4.7 per cent during the year-ago quarter.
"The focus on margin expansion continues to be an area of high priority for us and I am glad that our efforts are bearing results," said Isaac.
