The stock hit a fresh 52-week high of Rs.4064.95 in today’s trading session.
This move in the stock was after the company reported a consolidated net profit at Rs.19.6 crore for the March quarter (Q4FY21) due to strong operational performance. The company had posted a loss of Rs.29.4 crore in the year- ago quarter.
Total revenue remained flat at Rs.1350 crore, compared to Rs.1345 crore in the previous year’s corresponding quarter. The company’s Ebitda margin (earnings before interest, taxes, depreciation, and amortization) increased by 40 basis points (bps) to 1.9% from 1.5%.
According to the company, its billable headcount has increased by 8% sequentially and 4% year on year. General Staffing has returned to pre-Covid headcount levels and has surpassed the pre-Covid revenue run rate. Staffing FTE productivity increased to 352 as of March 31, 2021, up from 334 in the third quarter of fiscal year 2021 and 264 in the fourth quarter of fiscal year 2021. Profitability in specialized staffing continues to improve as a result of cost optimization and product mix. According to the company, revenue for HR services has increased by 33% QoQ.
According to management, “The pandemic has provided the company with an opportunity to strengthen the digitalization strategy and accelerate client partnership initiatives aimed at increasing productivity. While Covid’s second wave may have a minor impact on growth in the current quarter, the company will continue to capitalize on market opportunities in the long run “.
Based on the recommendations of the Nomination and Remuneration Committee, the Board of Directors of the Company has approved the appointment of Mr. Mekin Maheshwari as an Independent Director (Additional) on the Board of the Company for a term of 5 years, beginning June 09, 2021, subject to Shareholder approval at the Company’s ensuing 21st Annual General Meeting of the Company.
The core business of the company is to provide staffing solutions across multiple industry sectors and functional areas. The majority of its Associate Employees work in sales, logistics, and customer service. It focuses on people, processes, and technology to improve business productivity by allowing its clients to outsource their staffing needs and focus on running and growing their core businesses.
Disclaimer: This document and the process of identifying the potential of a company has been produced for only learning purpose. Since equity involves individual judgments, this analysis should be used for only learning enhancements and cannot be considered to be a recommendation on any stock or sector.