Good margin performance on muted revenue growth

Company
11 Mar 2024
5 Min read 
  • Quess Corp reported good margin performance but muted revenue growth in 3QFY24.
  •  The company added strong headcount but lower than the previous quarter.
  •  EBITDA margin exceeded expectations, aided by margin expansion in certain businesses.
  •  Revenue growth was modest due to weaker end demand and account rationalization.
  •  Growth is expected to improve from FY25 onward as certain businesses normalize.
  •  The company delivered strong margin improvement despite pressure on the WFM vertical.
  •  Valuations are already factoring in medium-term tailwinds, leading to a neutral rating.
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