Review

QUESS CORP LTD

Ticker : 539978 
FV: ₹10
52-Week H/L: ₹ 990/532.6

We recommended Quess Corp Limited in volume no. 37, issue no 48 (dated September 20, 2021) when the scrip was trading at Rs 951. On the consolidated quarterly front, the company recorded an increase of 23.43 per cent in the net sales & operating income, which stood at Rs 3,227.84 crore for Q2FY22 as compared to Rs 2,615.07 crore reported for Q2FY21. The operating profit stood at Rs 119.78 crore in Q2FY22, squeezing 26.98 per cent from Rs 164.05 crore posted in Q2FY21. The company's net profit was recorded at Rs 41.67 crore in Q2FY22, dipping 16.5 per cent from Rs 49.91 crore earned in Q2FY21. The company has been investing in sales and the management believes that these investments would further boost the client additions. Over the medium term, as both the centre as well as the state governments look to liberalise and formalise the labour markets, the company poses to be among the biggest direct beneficiaries. Hence, we recommend HOLD.