Quess Corp shares tumble as sudden CEO exit eclipses strong Q3
Over the past three trading sessions, shares of temporary investment firm Quess Corp Ltd have fallen almost 11%. This is despite the company reporting a robust performance in the December quarter.
Analysts note that the sudden exit of its managing director and chief executive Krishna Suraj Moraje dampened investor sentiment towards the stock.
Moraje has been succeeded by Guruprasad Srinivasan as Executive Director and Group Managing Director of the company for a period of three years, effective February 10, 2022.
However, the title 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 added pressure on the stock.
“Quess Corp’s 3Q22 performance was strong, with revenue growth, adjusted Ebitda margin and adjusted after-tax profit in line with our estimates. However, the sudden departure of its current CEO, Suraj Moraje, added a layer of concern, especially since the company had positioned Suraj as a change agent two years ago and emerged in better shape after the overhaul,” analysts at Motilal Oswal Financial Services Ltd said in their latest report. Ebitda is the abbreviation of earnings before interest, taxes, depreciation and amortization.
Meanwhile, going forward, investors would watch for comments on the company’s growth plans from Ajit Isaac, Executive Chairman and Guruprasad Srinivasan.
Speaking of Q3FY22 earnings, Consolidated Net Profit improved 94% YoY (YOY) to Rs 89 crore and Revenue grew 31% YoY to Rs 3,685 crore. On a post-earnings conference call, management said the demand environment for its core IT staff business remains rich and highly skilled profiles are attracting higher margins.
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