Quess Corp. Ltd. · NSE:QUESS
Quess — Q4 FY20 Earnings Presentation
33 slides from Quess's earnings presentation, May 27, 2020
Slide 1: Cover letter to stock exchanges: Investor Presentation
a uess WINNING TOGETHER May 27, 2020 The General Manager The Manager Department of Corporate Services, Department of Corporate Services, BSE Limited, National Stock Exchange of India Limited 151 Floor, New Trading Ring, Exchange Plaza, Sandra- Kundra Complex, Rotunda Building, Phiroze Jeejeebhoy Tow
Slide 2: Winning Together Investor Presentation Q4FY20 & FY20
Winning Together Investor Presentation Q4FY20 & FY20 1
Slide 3: Safe Harbor
Safe Harbor This presentation has been prepared by Quess Corp Limited (“Company") solely for information purposes without any regard to any specific objectives, financial situations or informational needs of any particular person. This presentation may not be copied, distributed or disseminated, dir
Slide 4: Contents
Contents Company Overview COVID-19 crisis management Q4FY20 Key Highlights Financial Performance (Q4 and FY20) Platform-wise Highlights Emerging Businesses Q2FY20 Earnings Presentation 33
Slide 5: Company Overview
Company Overview Q2FY20 Earnings Presentation 44
Slide 6: India's Largest Business Services Platform
India’s Largest Business Services Platform • World’s #4 Staffing • Top 3 Domestic BPO Company Player in India • India’s #1 Gen. Staffing • India’s #1 HR Payroll player 384,132 FTE provider 2,600+ enterprise clients Canada USA • Leading vocational • India’s #1 IT Staffing 10+ Countries UAE Vietnam Ho
Slide 7: Quess' Journey: Key Milestones
Quess’ Journey: Key Milestones ► Record-breaking IPO : Oversubscribed by ► Headcount of 384,132 144x ► Acquired: ► Acquired: • Allsec : Strengthening BPM segment • Manipal Integrated Services : Specialty FM ► Investment by Amazon : ₹ 51cr • Terrier : Entry in Security solutions (49%) ► TCIL de-merge
Slide 8: Quess Service Platforms
Quess Service Platforms Soft & Hard FM Services Integrated Security Solutions General Staffing Industrial O&M Operating Asset Management IT Staffing Workforce Telecom Network O&M Management BPM and CLM Skill Development Global Technology Solutions Payroll Processing & HR Compliance Logistics Emergin
Slide 9: COVID-19 crisis management
COVID-19 crisis management Q2FY20 Earnings Presentation 88
Slide 10: COVID-19 crisis management
COVID-19 crisis management During the COVID crisis we have continued to execute on our promise of Winning Together with our Customers, People, and Investors Understanding that these are not normal times, we have launched a host of targeted measures to support each of these stakeholders Q2FY20 Earnin
Slide 11: Our Customers
Our Customers Going beyond the call of duty: Keeping their employees safe, making them productive at home REVISED VALUE PROPOSITIONS - NEW SERVICE LAUNCHES • Digital hiring: Permanent and Temporary staff hired and on boarded digitally • Office fumigation & Sanitization: Designed for a germ-free offi
Slide 12: Our People
Our People SAFETY • Telemedicine Hotline: Free doctor consultation for ~384k employees via proprietary app • Digital IDs: Digital verifiable associate and employee passes to facilitate easy journey to work • Stay Home Stay Safe Communication: Encouraging employees to be safe and WFH with all support
Slide 13: Our Investors
Our Investors CASH • Comfortable cash balance through continued focus on collections • Strengthened cash position by temporarily drawing additional credit line of ~ ₹100 cr • Launched task forces for aged collections and government dues to enable further debt reduction COST MANAGEMENT • Reduced indi
Slide 14: Q4FY20 Key Highlights
Q4FY20 Key Highlights Q2FY20 Earnings Presentation 13 13
Slide 15: Q4FY20 Highlights
Q4FY20 Highlights Financial Corporate Platform ▪ Strong Headcount growth, up 21% YoY to cross 384k ▪ Corporate initiatives are on track with significant ▪ Workforce Management: ▪ P&L statement: improvements in business operations & corporate structure o WFM associate headcount up 30% YoY to 262k. o
Slide 16: Financial Performance (Q4 and FY20)
Financial Performance (Q4 and FY20) Q2FY20 Earnings Presentation 15 15
Slide 17: Q4FY20 Financial Performance
Q4FY20 Financial Performance Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) Revenue: • Up 30% YoY (27% organic) & 2% QoQ (all organic) 2,950 2,995 YoY 30% 179 YoY 28% • YoY Organic growth was driven by growth in General Staffing QoQ 2% 169 12.0% QoQ 6% 160 145 (up 67%) , IFM (up 5%) and CLM (Con
Slide 18: FY20 Financial Performance
FY20 Financial Performance Headcount & Revenue: Headcount (‘000s)# Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) • Headcount up 21% YoY • Added 66k employees in FY20 vis-a-vis 56k in FY19 658 YoY 21% 10,991 YoY 29% YoY12.0%42% • Revenue up 29% YoY (26% organic) 384 640 600 531 318 8,527 560 465
Slide 19: Platform-wise Updates
Platform-wise Updates Q2FY20 Earnings Presentation 18 18
Slide 20: Workforce Management – Performance Snapshot
Workforce Management – Performance Snapshot Financial Metrics Operating Metrics Associate Headcount ('000) Core:Associate (Gen Staffing; 1:X) Revenue (in ₹ cr) 255 260 262 30% 1,959 2,039 237 1669 46% 202 YoY 333 333 330 YoY 1394 1488 YoY 330 330 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Q4' 20 Q4' 19 Q1' 20 Q2'
Slide 21: Workforce Management – Revenue Distribution and Client Insights
Workforce Management – Revenue Distribution and Client Insights Revenue Distribution 1% 3% 4% 5% 5% 9% Gen. Staffing BFSI 14% 8% 32% Retail India IT Staffing 7% Telecom By By By SEA Industrials Business Skill Development Sector Geography Segment 10% FMCG ME Others IT/ITES 79% 12% 21% Logistics Other
Slide 22: Operating Asset Management – Performance Snapshot
Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Associate Headcount ('000s) Rev. Realization/Headcount/Month - IFM ('000) Revenue (in ₹ cr) 83 448 438 80 5% 432 428 YoY 23 23 23 YoY 427 2% 22 22 78 78 YoY 76 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Q4' 20 Q4' 19 Q1' 20 Q2' 2
Slide 23: Operating Asset Management – Revenue Distribution and Client Insights
Operating Asset Management – Revenue Distribution and Client Insights Revenue Distribution 8% 10% 23% IT/ITES 11% 8% Education By IFM* Industrials 9% By Business BFSI Segment Industrials 2% Sector Real Estate Telecom 11% 18% Telecom Healthcare & Hospitality 81% Others 19% IFM* is the largest busines
Slide 24: Tech Services – Performance Snapshot
Tech Services – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Revenue/FTE (Conneqt ‘000s) 551 544 528 462 480 464 464 454 14% 35.3 YoY 384 402 34.3 9% 18% 32.5 32.1 33.1 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Q4' 20 Monster & DigiCare are the two Emerging businesses in the Tech Q4'
Slide 25: Tech Services – Revenue Distribution and Client Insights
Tech Services – Revenue Distribution and Client Insights Diversified Revenue Base 7% 13% 22% 28% CLM BFSI IT Services 39% Retail 7% By 45% India BreakFix By IT/ITES By Business 7% Sector Geography N.America Segment HRO Telecom Internet Others 72% 21% 28% 11% CLM & IT Services constitute majority bus
Slide 26: Emerging Businesses
Emerging Businesses Consistent Reduction in Operating losses & Aggressive expansion of service range Improvement in Key Operating Metrics and new logos • Consistent sequential reduction in EBITDA losses EBITDA Losses (in ₹ cr) • Modularisation of legacy platform on track; 10 Our current service sign
Slide 27: Annexures
Annexures Q2FY20 Earnings Presentation 26 26
Slide 28: Income Statement (Q4 & FY20)
Income Statement (Q4 & FY20) (in ₹ cr) Quarterly Full year Particulars Q4FY20 Q4FY19 Q3FY20 YoY QoQ FY20 FY19 YoY Revenue from operations 2995 2295 2950 30% 2% 10991 8527 29% Less: Employee benefit expense (2510) (1821) (2449) 38% 2% (9063) (6713) 35% Cost of material (60) (43) (72) 39% (17%) (267)
Slide 29: Balance Sheet
Balance Sheet (in ₹ cr) Particulars 31-Mar-20 31-Mar-19 Var % Non-current assets Fixed assets 514 236 118% Intangibles 978 1,435 (32%) Investments 72 90 (19%) Other non-current assets 863 846 2% Current assets Trade receivables 998 913 9% Unbilled revenue 881 703 25% Cash & cash equivalents 792 624
Slide 30: Cash Flow Statement
Cash Flow Statement (in ₹ cr) Particulars FY20 FY19 PAT (432) 257 Add: Non Cash Expenses/ (Income) 1124 245 Cash Flow Before Working Capital Changes 692 502 Changes in Working Capital (186) (125) Cash generated from operations 506 377 Less: Income Tax Paid (145) (175) Cash Flow from Operations 361 2
Slide 31: Segment Reporting
Segment Reporting (in ₹ cr) Quarter ended Year ended Particulars Mar 2020 Dec 2019 Sept 2019 June 2019 Mar 2019 Mar 2020 Mar 2019 Workforce Management Platform Revenue 2,039 1,959 1,669 1,488 1,394 7,154 5,035 EBITDA 103 103 91 90 95 388 309 EBITDA % 5.1% 5.3% 5.5% 6.0% 6.8% 5.4% 6.1% Operating Asse
Slide 32: Segment Reporting: Based on old Segments
Segment Reporting : Based on old Segments (in ₹ cr) Quarter ended Year ended Particulars Mar 2020 Dec 2019 Sept 2019 June 2019 Mar 2019 Mar 2020 Mar 2019 People Services Revenue 1,709 1,618 1,361 1,196 1,107 5,884 3,880 EBITDA 86 84 76 75 61 322 204 EBITDA % 5.0% 5.2% 5.6% 6.3% 5.5% 5.5% 5.3% Techno
Slide 33: Winning Together: In your win lies our win
Winning Together In your win lies our win 32 32