Quess Corp shines on strong Q2FY20 results

Quess Corp Limited has reported its results for the quarter ending September 30, 2019. The consolidated revenue for the quarter is come at Rs. 2650.25 crore as against Rs. 2091.71 crore in the corresponding quarter last year, registering a 26.7 per cent yoy increase. The EBITDA for the quarter grew by 9.6 per cent yoy to Rs. 161.38 crore as against Rs. 147.29 crore in Q2FY19, with a corresponding margin contraction of 95 bps. EBITDA margin for the quarter stood at 6.1 per cent. The PAT for the quarter came in at Rs. 65.03 crore as against Rs. 61.64 crore in the corresponding quarter last year, a yoy increase of 5.5 per cent.

Looking at the half yearly numbers for H1FY20, the revenue jumped by 24 per cent to Rs. 5044.97 crore while EBITDA fell by 48 per cent to Rs. 112.01 crore. Further, the company has reported a net profit of Rs.121.31 crore, up 5 per cent yoy. During the quarter, the company also reduced its debt of Rs. 375 crore to Rs 272 crore.

The Board of Directors have considered and approved an increase in the company's stake in Vedang Cellular Services Private Limited by 18.71 per cent. Consequently, Quess Corp will hold 88.71 per cent shares in Vedang on completion of the acquisition of the shares.

Vedang is in the business of Telecom Network Optimization, Installation of active components in Telecom network and managed services space in India across 20 telecom circles. The acquisition process is expected to get completed before December, 2019. The cash consideration for acquiring an additional 18.71 per cent stake is Rs. 10 crore.

The stock of Quess Corp has reacted positively on Thursday. It surged by 17 per cent during the morning trading session post results to Rs 554.70 from its previous close of Rs 474. Later, it got closed at Rs. 517.