Quess Corp’s net profit grew 44% year-on-year to ₹74.66 crore for the quarter ended September, supported by strong demand in its staffing business. The company also reached a milestone of 500,000 employees and announced a ₹5 interim dividend. Investors are tracking the company's performance alongside its ongoing corporate demerger process.
Quess Corp reported a consolidated net profit of ₹74.66 crore for the second quarter, representing a 44% increase compared to ₹51.77 crore in the same quarter last year. Revenue from operations also saw growth, rising 14.74% to ₹4,396.48 crore. Following these results, the company’s board approved an interim dividend of ₹5 per share.
The company reached a significant operational milestone during the quarter, with its total headcount surpassing 500,000 personnel. This growth was largely supported by the General Staffing division, which added more than 20,000 employees and secured 116 new client contracts. This segment recorded a 15% increase in revenue and a 23% rise in core profit compared to the previous year.
The Professional Staffing segment also contributed to the growth, with a 13% revenue increase driven by consistent hiring demand from Global Capability Centres. Additionally, the company’s international operations showed resilience, delivering 10% revenue growth and 23% growth in core profit, with improved margins noted in Middle Eastern markets and strong performance in Malaysia, Singapore, and the Philippines.
For investors, the most significant corporate development remains the company's ongoing three-way demerger plan. The business is in the process of splitting into three separate, listed entities: Quess Corp (Workforce Management), Allsec Technologies (Customer Experience and Business Process Management), and a new entity focused on HR Services. The successful execution of this restructuring is a key monitorable, as it involves separating distinct business lines to potentially unlock value and simplify operations.
While the company has reported growth, the staffing industry faces ongoing challenges. Profit margins in this sector are highly sensitive to wage inflation and the cost of attracting talent. Furthermore, the company faces intense competition from both domestic staffing firms and larger global players. Investors typically monitor client concentration risks and the ability of the company to maintain its margins while managing the operational complexity of its workforce and the upcoming corporate split.