Shares of Quess Corp fell 5% after reporting disappointing results for the quarter ended March 2023. The business services provider reported a 61% drop in net profit at Rs 30 crore for the quarter, compared to the Rs 77 crore reported for the same period last year. Net profit for the December 2022 quarter was Rs 86 crore.

The company’s revenue rose 17% to Rs 4,440 crore from Rs 3,792 crore in the same period of the previous fiscal. Revenue was down slightly QoQ compared to Rs 4,446 crore reported in Q3FY23.

EBITDA fell 18% to Rs 152 crore against Rs 185 crore in Q4FY22, while the margin fell 145 basis points year-on-year to 3.42%. Subsequently, margins expanded by 16 basis points.

For the full year FY22-23, the company reported a 25% year-on-year increase in revenue to Rs 17,158 crore while EBITDA fell 6% to Rs 586 crore. Net profit was Rs 223 crore, down 11% year-on-year.

“We are pleased to report revenue of Rs 17,158 crore, up 25% year-on-year, driven by growth of over 70,000 for the second consecutive year. Consolidated total debt decreased by Rs 57 crore to Rs 531 crore as our business grew by 25%. We have reduced our DSO by 5 days year-on-year to 57 days, which resulted in total revenue of Rs 294 crore, which represents 71% of our operating EBITDA,” said Guruprasad Srinivasan, Executive Director and Group CEO, Quess Corp.

The company’s market value has fallen 40% over the past year and about 15% over the past six months. The stock was trading 3.55% lower at Rs 382.65 on the NSE at 10:46 am, while the benchmark Nifty was trading 0.27% higher at 18,230.90.