QUESS - Quess Corp Limited Share Price

Here are the major questions and their detailed answers from the Q&A section of the earnings call transcript:

Question 1: "Regarding headcount adds, do you see this trend continuing, considering the festive hiring momentum?"

Answer 1: We are confident that H2 will see a similar performance as H1, given the positive market conditions. In Q3, which starts with Diwali and continues into the festive season, we aim to achieve net adds of about 10,000 to 15,000 associates per quarter. Our substantial open mandates of around 27,000 reflect our confidence in maintaining headcount growth and seizing seasonal hiring opportunities.

Question 2: "On Professional Staffing margins, can you provide clarity on their sustainability?"

Answer 2: While we've achieved historical margins through rationalizing low-margin contracts, we believe these improvements will be sustained. Current market demand, especially in mid-senior level roles, remains strong. We project operating margins should hold steady, likely in the low double digits, as our focus on operational efficiency and demand continues to align positively.

Question 3: "What accounts for the increase in finance costs despite stable net debt?"

Answer 3: The rise in finance costs primarily stems from increased working capital needs associated with higher-margin businesses, such as Professional Staffing. We expect these costs to rationalize in the coming quarters, estimating them around INR 9 to 10 crores quarterly, as operational efficiencies improve.

Question 4: "In General Staffing, what is the outlook for margins and PAPM?"

Answer 4: Currently, PAPM remains stable around 670 to 680. We are intensifying sourcing efforts, especially in Tier 2 cities, which represent increasing demand. With about 41% of our hiring now from sourcing rather than transfers, we believe this will positively affect margins as we continue to diversify our hiring strategies and improve sourcing efficiency.

Question 5: "Can you clarify your expectations for double-digit revenue growth in General Staffing?"

Answer 5: The growth we see is anchored by seasonal hiring and a rebound in the market. While H1 showed subdued year-on-year growth due to prior headcount cuts, we're confident in achieving 10% to 15% net adds moving forward. We aim to achieve double-digit growth by leveraging operational strengths and market demand in the second half.

These answers encapsulate the key points from the Q&A while adhering to the character limit constraint.