Quess Corp Shares Recover 7% After Four Days of Sell-off
Quess Corp shares had taken a hit after the company, at its board meeting held last week, deferred a decision on a fund-raising proposal.
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Quess Corp shares recovered nearly 7% in early trade on Friday after falling over 22% in the first four trading sessions of the month. However, the Quess Corp stock later trimmed gains sharply to trade at Rs 456.05, up 1.16%, at 10.15 am.
Quess Corp shares had taken a hit after the company, at its board meeting held last week, deferred a decision on a fund-raising proposal. “The same would be considered at a later date,” the company stated in a regulatory filing.
Quess Corp MD Ajit Isaac told a news channel that there were no concerns around the company’s sales growth or margin pressure/profitability. He assured satisfactorily good revenue performance across business segments. He said it’s “business as usual” and shrugged off the sharp drop in stock price as perception about some unfounded problems.
The stock is currently trading near its lowest level since its listing in July 2016. Quess Corp had raised Rs 400 crore through initial public offering (IPO) in July 2016 by issuing shares at price of Rs 317 apiece.
Quess Corp is a provider of technological and business services and forayed into smart city projects in FY18. Thomas Cook India owns 49% in the Bangalore-based company.
Quess Corp in its annual report for FY19 suggested that it has faced certain issues on the working capital front due to longer cash collection cycles. It said: “Keeping this in mind, we have decided not to take up any more projects in smart city going forward as they increase our cash collection cycle.”
In the March quarter, Quess Corp reported flat net profit of Rs 76 crore over the year-ago quarter, while Ebitda (earnings before interest, tax, depreciation and amortization) margins contracted 4 basis points to 5.74%.
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