Review

QUESS CORP LTD.

Ticker : 539978 
FV: Rs 10 
52-Week H/L: Rs 990/451

We recommended Quess Corp Limited in volume no. 37, issue no. 48 (dated September 20, 2021) when the scrip was trading at Rs 951. The consolidated quarterly financials state that the company recorded a 23.43 per cent increase in the net sales and operating income, which stood at Rs 3,227.84 crore for Q2FY22 relative to Rs 2,615.07 crore reported in Q2FY21. Operating profit contracted by 26.98 per cent from Rs 164.05 crore in Q2FY21 to Rs 119.78 crore in Q2FY22. Net profit also decreased by 16.50 per cent from Rs 49.91 crore in Q2FY21 to Rs 41.67 crore reported in Q2FY22, due to exceptional non-cash items. Its net debt position improved to Rs 68 crore in Q2FY22 as against Rs 151 crore in Q1FY22. The company has robust financials and continues to deepen its capabilities in sales, technology-led hiring & delivery, operational efficiencies, and cash generation. Hence, we recommend HOLD.