This is old news of August
Quess Corp’s General Staffing division first in India to cross 250,000 associates.
Quess Corp Limited, India’s largest business services company, today announced that its General Staffing division has achieved yet another milestone by scaling the 250,000 associate mark, making it the first Indian staffing company to achieve this feat and further cementing the company’s position as leader in the staffing space. Quess General Staffing has added over 50,000 headcounts in past 12 month, growing over 25% in a year, and 285% in 5 years.
A person familiar with the development said Moraje’s exit was likely due to differences in strategy between him and Isaac. “While Quess had an aggressive expansion strategy and was spreading itself too thinly in various businesses, Moraje streamlined things and exited loss-making businesses. He brought a lot of focus on cash flow and profitability,” a source said.
Internal candidate appointed as new CEO.
Q3’22 Corporate Updates
- Recorded best ever quarter in terms of Revenue (₹ 3,685cr), EBITDA (₹ 179cr) and PBT(₹ 114cr)
- Increased equity stake in Taskmo from 36.58% to 49.00% against consideration of approximately ₹ 4cr
- Paid interim dividend of ₹ 4/- per share during Dec’21
- Monster raised ₹ 137.5cr at a valuation of ~ USD 100mn in Dec’21
- General Staffing business ranked 48 in top 50 of SIA’s prestigious Largest Global Staffing Firms 2021 list
- In a recently conducted employee satisfaction survey, out of 110,000 respondents, 83% rated themselves Very Satisfied or Satisfied with Quess
Public shareholders of Allsec will receive 74 shares of Quess for every 100 shares held in Allsec.
Quess was already holding 73.39% of Allsec through its subsidiary Conneqt Business Solutions.
Does he has to do anything with the recent fall in share? I’m trying to understand why the share has fallen. Ashis Dhawan sir is buying the dip. The CEO is changed. So can we assume bottom formation is done. Latest concall margin expansion guidance is given. How is the execution track record?
Thanks
Mr. Issac scaled the company well in the initial days and Fairfax bought on that promise. However they also are known to talk big and deliver less. They have a past of poor capital allocation. Suraj Moraje brought some discipline to it. His departure because of internal conflict was a setback for me as there is a good chance for the management to go back to its previous fallacy. So, I took an exit but will continue to track the performance.
So the market has discounted the fact that the company will go back to it’s previous form of doing wrong capital allocation and undoing whatever good the previous ceo did. Is that correct understanding?
In addition to that I believe the major reason is the disallowance of deductions under Section 80JJAA. Under this section, on every new job added, a special deduction was allowed on the employer’s, i.e. manpower companies’ profit for computing tax. Quess filed an appeal against this the results of which are expected to come before 23rd March 2023. They will continue to claim the deduction for the current year still, but if the order holds then all the deductions starting from FY16 will be rejected. Total 80JJAA claim for Quess stood at INR7b over FY16-20, and add some for FY21-23 also. Quess has made provision for only FY18 so far which is INR166mn and they are expected to make more provisions in the coming quarters.
Teamlease is also suffering in the market for the same reason, I believe.
@sujay85, sorry I didn’t go through the entire thread, if this is already answered please excuse me.
This merger of Alsec into Quess is complete ?
It has been approved by the the boards on June 22 but probably the record date has not been decided yet. Allsec is still being traded in the exchange.
Promoter has started buying. Looks like bottom is near.
I don’t see any update on Allsec and Quess Corp merger.
“Public shareholders of Allsec will receive 74 shares of Quess for every 100 shares held in Allsec.” - Why Allsec is trading at higher value?
AllSec price = 517100(share) = 51700
Quess price = 41074(share) = 30000
It’s 40% difference. Am I missing any thing?
In view of the changed market scenario, the Board considered the proposal of withdrawal
under clause 21.2 of the Scheme at its meeting held today, December 23, 2022 and approved
withdrawal of the Scheme.```Ajit Isaac Interview:
- Fairbridge & Isaac Family together own 56.5% stake now.
- Expecting Q1 of FY24 to be a good quarter.
- Revenues are growing more than the head count.
- Revenue growth in FY24 is expected around 15-18%.
- Want to work on margins and go up till 4-4.5% and also want to improve DSO.
- Asset Monetization is also on the plan as stated by BCG.
- Expecting EPS to grow 30-40% in the coming year. (Seems unlikely)
Insider Acquisition: Ajit Issac/Fairbridge Capital (Promoter/Director) have started buying shares from open market. Total Value of Buying is 276.38 cr. (72 lac shares) that 5.11% of total mkt cap and 10.64% of free float mkt cap.
Something is cooking in Quess Corp.
Meeting with 5 institute investors in 2 days.
Latest on 80JJAA benefits for staffing companies
On one side, the Income Tax Dispute Resolution panel has disallowed Sec 80JJAA deduction for Quess for FY19 (already FY18 is pending at Income Tax Appellate Tribunal).
Other side, latest credit rating report shows Income Tax Dept has allowed the 80JJAA benefit to teamlease for FY20 & FY21 although FY18 & FY19 are still under litigation.
https://www.icra.in/Rationale/ShowRationaleReport/?Id=122107
Hoping to hear something on this from Quess soon, specially if AO has allowed 80JJAA benefit for FY20& FY21, it will clear a major industry overhang.
But in case, it is disallowed for Quess but allowed for Teamlease, it will raise another set of questions.