Quess Corp Limited, a leading business services provider, has announced a strategic move to expand its global presence in the engineering services sector. The company's foreign material wholly-owned subsidiary, Quesscorp Holdings Pte. Ltd., has incorporated a new wholly-owned subsidiary named Quess Engineering Pte. Ltd. in Singapore.

Key Details of the New Subsidiary

Strategic Implications

This move signifies Quess Corp's commitment to expanding its international footprint, particularly in the engineering services vertical. The new entity is positioned to tap into the demand for specialized engineering talent across global markets.

Operational Status and Regulatory Compliance

Quess Engineering Pte. Ltd. is yet to commence operations. The incorporation did not require any governmental or regulatory approvals.

Corporate Governance and Transparency

In line with regulatory requirements, Quess Corp has disclosed this development under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company has confirmed that the promoters and promoter group have no interest in this transaction.

Market Implications

This strategic move positions Quess Corp to potentially capture new revenue streams in the international engineering services market. The new subsidiary in Singapore could serve as a stepping stone for further expansion in the Asia-Pacific region's engineering services sector.

Quess Corp , India's leading business services provider, has reported strong financial results for the second quarter, with record EBITDA and steady revenue growth.

Financial Highlights

• Revenue: ₹3,832.00 crores (up 3% year-on-year)
• EBITDA: ₹77.00 crores (up 11% year-on-year)
• PAT: ₹52.00 crores
• EPS: ₹3.50 per share

The company's EBITDA margin crossed the 2% mark, with operating cash flow conversion at 109%.

Operational Performance

Quess Corp added over 21,000 associates during the quarter, bringing its total associate count to 483,115, a 5% increase year-on-year. This solidifies the company's position as India's largest domestic staffing player.

Segment-wise Performance

General Staffing

• Revenue: ₹3,317.00 crores (up 3% year-on-year)
• Net additions: 21,283 (highest in last 6 quarters)
• Headcount: 470,337

The segment saw strong growth driven by festive hiring momentum, particularly in manufacturing and BFSI verticals.

Professional Staffing

• Revenue: ₹224.00 crores (up 11% year-on-year)
• EBITDA: ₹27.00 crores (up 37% year-on-year)
• EBITDA margin: 12.2%

The segment achieved its highest-ever EBITDA, driven by a focus on profitable growth and rationalization of low-margin contracts.

International Business

• Revenue: ₹290.00 crores
• EBITDA: ₹18.00 crores

The overseas business performed well, with broad-based strength in key regions, particularly in the Middle East and Malaysia.

Financial Position

Quess Corp closed the quarter with a net cash balance of ₹273.00 crores after paying approximately ₹90.00 crores in dividends, highlighting the company's strong liquidity position and balance sheet strength.

Management Commentary

Guruprasad Srinivasan, Group CEO of Quess Corp, commented on the results: "We are pleased to report another quarter of solid execution and continued momentum. Our focus remains on operational excellence, margin expansion, and prudent capital management, while continuing to invest in high-value segments and technology."

Outlook

Management expects to deliver similar growth in H2 as seen in H1, with a continued focus on operational excellence and margin expansion. The company aims to maintain its leadership position in the staffing industry while exploring new growth opportunities in emerging segments.

As Quess Corp continues to strengthen its position in the business services sector, investors and analysts will be watching closely to see if the company can sustain its growth trajectory and profitability in the coming quarters.