Quess Corp net drops 39%, invests in gig-economy startup Taskmo

Quess Corp net drops 39%, invests in gig-economy startup Taskmo

BENGALURU: Quess Corp reported a 39% decline in net profit to Rs 46 crore during the quarter to December. The largest private sector staffing company reported a near 5%% drop in revenue to Rs 2808 crore during the third quarter.

During the same period last year, the company reported a net profit of Rs 75 crore on revenues of Rs 2950 crore.

Quess said its operating margin (EBITDA) during October-December quarter this year grew 8% sequentially to Rs 151 crore and declined 16% year on year owing to lockdown-related negative impact of Rs 29 crore from Excelus and IFM (integrated facilities management) food businesses.

The company achieved a Net Cash position of Rs 26 crore from a net debt of Rs 45 crore.

Quess reported a 5% sequential growth in general staffing to a total headcount of 3.33 lakh.

Analysts said the company’s security and facility management businesses were impacted due to the pandemic and unlikely to resume soon with pre-Covid level capacity.

Quess said its Board has approved subscription of 49% equity shares in Taskmo, a gig economy start-up, for Rs 10 crore, to be invested in multiple tranches. Taskmo is a business to business managed marketplace that serves as an on-demand task fulfilment platform for enterprises seeking to outsource task based operations to a distributed network of gig workers. It uses an app and web based proprietary algorithm to train, match and deploy gig workers.

Tata Sons has exercised the put option for sale of their 30% stake in Conneqt, a Quess subsidiary. Conneqt expected to become a 100% subsidiary of Quess Corp in the fourth quarter.

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