Quess Corp stock tanks as CEO's sudden exit overshadows strong Q3
Analysts note that the sudden exit of it's managing director and chief executive officer Krishna Suraj Moraje dampened investors' sentiment towards the stock.
PremiumIn the last three trading sessions, the shares of temporary staffing company Quess Corp Ltd have declined by nearly 11%. This is despite the company reporting a robust performance in the December quarter.
Analysts note that the sudden exit of it's managing director and chief executive officer Krishna Suraj Moraje dampened investors' sentiment towards the stock.
Moraje has been replaced by Guruprasad Srinivasan as executive director and Group Chief Executive of the company for a period of three years, effective February 10, 2022.
Yet, the stock remains under pressure.
Shares of the company fell around 8% on the NSE intraday on Monday. It should be noted that the overall market mood on Monday was also weak and may have accentuated the pressure on the stock.
"Quess Corp 3QFY22 performance was strong, with revenue growth, adjusted Ebitda margin, and adjusted profit after tax being in line with our estimates. However, the sudden departure of its current CEO, Suraj Moraje, added a layer of concern, especially given that the company had positioned Suraj as a change agent two years ago and came out in a better shape post the overhaul," analysts at Motilal Oswal Financial Services Ltd said in their latest report. Ebitda is short for earnings before interest, tax, depreciation and amortization.
Meanwhile, going ahead, investors would watch out for commentary on the company's growth plans from Ajit Isaac, executive chairman and Guruprasad Srinivasan.
Speaking of Q3FY22 earnings, consolidated net profit improved 94% year-on-year (y-o-y) to Rs89 crore and revenue rose 31% y-o-y to Rs3,685 crore. In a post earnings conference call, the management said, demand environment for its key IT staffing business remains rich and high-skill profiles are attracting higher margins.
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