"We have around Rs 9.90 billion of debt and Rs 8.80 billion of cash reserve. So, on a net basis, our debt stands at around Rs 1.10 billion. Apart from the low debt level, around 35-40 per cent of our operating profit is translated into cash reserve, which is likely to be in the range of Rs 1.8 billion to Rs 2 billion. So, this puts us in a good position to fund our acquisitions," Isaac said. The company follows Fairfax's guiding principle of creating long-term value in the case of all its acquisitions, he added.
In FY18, the company reported Rs 61.67 billion in revenues with an operating profit of Rs 3.54 billion. The company's operating margin, however, stood at 5.75 per cent, which makes it a good case to improve further.
"With the platformisation of our offerings, we hope that we will be able to increase our margins. From around a two per cent kind of margin reported in the HR management services space, we have moved up to the mid-five range now and our aspiration is to reach eight per cent in coming years," the chairman said.
In order to improve its overall operational efficiency with optimisation of costs, Quess has roped in Accenture to identify ways of boosting margin. The company is looking at improving operational efficiency by reducing duplication of roles in acquired entities, apart from offering a digital experience to its clients.