Quess Corp’s new dividend policy gives hope to investors

In an attempt to allay investors’ concerns on capital allocation, Quess Corp. Ltd has announced a new dividend policy. The temporary staffing company would be using around 33% of its free cash flows to returnto its shareholders over three years, and has started by announcing its first ever dividend of ₹7 per share. “This move adds to investor confidence after a string of sub-optimal capital-allocation decisions,” analysts at ICICI Securities Ltd said in a report on 7 June.

Since its listing in 2016, the company’s growth strategy has mostly been inorganic. The long time taken to turn around acquired entities and rising debt have made investors uncomfortable.