Quess Corp fell 1.31% to Rs 199.35 after consolidated net loss stood at Rs 629.92 crore in Q4 March 2020 compared with net profit of Rs 75.50 crore in Q4 March 2019.
Consolidated net sales jumped 30.5% to Rs 2,994.59 crore in Q4 March 2020 over Rs 2,294.77 crore in Q4 March 2019. Pre-tax loss stood at Rs 594.36 crore in Q4 March 2020 as compared to a pre-tax profit of Rs 87.59 crore in Q4 March 2019. The company incurred one off non-cash charge of Rs 664 crore on account of goodwill impairment and change in tax regime. The result was announced after market hours yesterday, 27 May 2020.
Consolidated EBITDA grew 28% to Rs 169 crore in Q4 FY20 over Q4 FY19 due to Covid-19 impact. EBITDA margin stood at 5.63% in Q4 FY20 as against 5.74% in Q4 FY19.
Sequantially, net debt increased by Rs 41 crore to Rs 354 crore, primarily on account of Rs 100 crore precautionary working capital lines drawn in March 2020 due to COVID impact. However, gross debt / EBITDA levels remained largely flat.
Commenting on the Q4 financial results, Suraj Moraje, has said that: "Quess delivered a strong year, with 29% revenue growth and 42% EBITDA growth. Our focus on OCF generation (including DSO reduction from 69 days in FY19 to 62 days in FY20) saw us grow OCF by 34% on a normalized basis. We are especially pleased by the growth delivered by our General Staffing and Allsec businesses. We have taken resolute steps to further develop our business and to face headwinds that the global COVID-19 crisis seeded in Q4. We are confident that these actions will continue to boost our OCF growth and ROE in the medium term."
On Wednesday, 27 May 2020, Quess Corp said it purchased 1.25 lakh equity shares or 25% stake of Terrier Security Services (India) (TSSIPL). Post acquisition, Quess Corp has increased its shareholding to 74% from 49% held earlier. The amount payable by Quess Corp has been set-off against an amount of loan payable by Heptagon Technologies to the company amounting to Rs 64.50 crore. TSSIPL is engaged in the business of provisioning of manned guarding services and electronic surveillance.
Quess Corp is engaged in the business of temporary staffing services, executive search, recruitment services, housekeeping and facility management services, including engineering services, food services and skill development.
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