In an interview with ET Now , Subrata Kumar Nag , CFO, Quess Corp, shares his business ideas. Edited excerpts:
ET Now: Please tell our readers why is it that they should be subscribing.
Subrata Kumar Nag: It is a Rs 400 crore prime issue. The current shareholders are not selling any shares in this round. The entire money will be coming to the company. The price band is Rs 310 to Rs 317. The anchor investor round has been done yesterday of Rs 180 crores and the issue opens today. It will close on July 1.
Now it will be listed in BSE and NSE. Quess is a business service platform company. We are just eight years old and having 120,000 employees with a turnover of Rs 3,400 crore with the EBITDA of Rs 171 crore as of March 16 and around Rs 89 crore in PAT. Quess has been growing at a very phenomenal pace.
In the last five years, I our revenues grew by 52% in CAGR, PAT grew by almost 81%. Our leverage ratio or debt-equity ratio is just 1.13%. We are four major verticals- one is the GTS, that is Global Technology Services in the IT; then we have staffing, and we have almost 85,000 people working in the service sector at the clients’ place. We also have a facility management, through which we have 20,000 plus people.
We have managed airports and we have managed hospitals. We manage corporate offices, schools, colleges and academic institutions. We also have an industrial asset management play, where we manage large industrial equipments and machineries.
Overall, if you see our suite of services, it is right in the middle of the Indian economy. I think all four will be growing, but the percentage of growth maybe little bit of here and there and as per the industry. We think all these four sectors will be growing around 20%.
Maybe industrial asset management will be growing at a 12% to 15%, but Quess has always been growing over and above the average industry growth. We strongly believe that Quess has a bright future in all these four sectors.
ET Now: Going through some of the research reports and some of the concerns being raised by analysts are that they are a little worried that sustainability via acquisitions may be a little challenged. What are your thoughts on this?
Our philosophy is to get into a small or mid-term acquisition in a new field and then start growing there. I think if you go by the past, we have a good record and I do not see any reason to believe that why we will not able to repeat that in future.
ET Now: If I sum up your thoughts, you mentioned that the industry key segments could grow at 20%, give or take a few points for one of them, which means on an average, ballpark all the four segments should grow around 20% you being someone who grows more?
Subrata Kumar Nag: Yes, exactly. That is the industry growth and we have been growing for the last five years at a 52% CAGR. So I hope that we will be able to beat the industry growth.
ET Now: Your CAGR growth the last four years has been substantially higher than the industry. Without getting into a number, do you think you can still do a substantially higher growth rate over the next three-four years?
ET Now: Your CAGR growth the last four years has been substantially higher than the industry. Without getting into a number, do you think you can still do a substantially higher growth rate over the next three-four years?
