Blog

Business services firm Quess Corp, the parent company of foundit (formerly Monster), reported a 61% decrease in net profit in the March-ended quarter of FY23 compared to the year-ago period.

Quess Corp’s net profit declined to Rs 30 crore from Rs 77 crore in the same quarter last year. However, the business services provider’s consolidated revenue rose 17% to Rs 4,440 crore last quarter driven by an increase in headcount and growth in all of its segments. 

While BFSI, FMCG, non-voice BPO and telecom were key business drivers in the last quarter, professional staffing and IFM (integrated facilities management) registered lackluster growth due to a slowdown in the IT sector, according to the company’s investor presentation.

The Bengaluru-based company’s total expenses incurred rose 19% year-on-year. It spent Rs 3,797 crore on employee benefits—its largest expense—according to its recent financial statements.

For FY2023, Quess Corp’s revenue increased to Rs 17,158 crore, up 25% YoY, while net profit decreased to Rs 223 crore, down 11% YoY. The company’s net cash position improved to Rs 82 crore in FY23 against Rs 16 crore in FY22.

Its EBITDA margin declined by 146 basis points compared to last year due to growth investments in its Product Led Business (PLB) segment. EBITDA, or earnings before interest, taxes, depreciation and amortisation, is a measure of core operational efficiency.

The company noted that its profit after tax, which was reduced by 36% without PLB, was due to a one-time tax impact of Rs 13 crore on the sale of digital compliance platform Simpliance, and an increase of Rs 8 crore in D&A (Depreciation and Amortisation).

Last November, job search portal Monster announced plans to transform into a full-fledged talent management platform, with a new logo and vision. The rebranding is completed, according to Quess.

The new platform has received positive traction on new features such as resume builder and skillyst, Quess noted, adding that foundit’s customer engagement metrics continue to stay strong at over 90%. Its net revenue was Rs 32.8 crore in the March-ended quarter of FY23, an increase of 29% year-over-year.

“We have closed the year on a strong note and are well-positioned to take advantage of the many organisational initiatives launched over the past 12 months,” Quess Corp ED and Group CEO Guruprasad Srinivasan, said in a statement.

“We believe the tailwind from India’s economic growth and the investments that Quess has made in its service lines gives us the opportunity to continue our steady growth in the next financial year,” he added.