Quess Corp. Ltd. · NSE:QUESS
Quess — Q2 FY20 Earnings Presentation
31 slides from Quess's earnings presentation, Oct 30, 2019
Slide 1: Delivering Growth - Investor Presentation Cover Letter
Q auess DELIVERING GROWTH October 30, 2019 The General Manager The Manager Department of Corporate Services, Department of Corporate Services, BSE Limited, National Stock Exchange of India Limited 1st Floor, New Trading Ring, Exchange Plaza, Sandra- Kundra Complex, Rotunda Building, Phiroze Jeejeebh
Slide 2: Investor Presentation Q2'FY20
Investor Presentation Q2’FY20 Q2FY20 Earnings Presentation CIN: L74140KA2007PLC043909 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 Q2FY20 Key Updates Financial Performance (Q2 and H1’FY20) Platform-wise Highlights Emerging Businesses Summary Q2FY20 Earnings Presentation 3
Slide 5: Company Overview
Company Overview Q2FY20 Earnings Presentation 4
Slide 6: India's Largest Business Services Platform
India’s Largest Business Services Platform India’s largest Gen. Staffing Co. Workforce of 3.7+ lakhs “Champion Employer” : Enabling Organizations worldwide manage their India’s largest IT Staffing Co. 1.1+ lakh students trained under Govt. programs Non-Core Activities Canada Singapore’s largest IT s
Slide 7: Quess' Journey: Key Milestones
Quess’ Journey: Key Milestones ► Crossed Headcount of 377,000; One of India’s ► Record-breaking IPO : Oversubscription of 144x largest private sector employers ► Acquired: ► Acquired: • Manipal Integrated Services : Specialty FM • Terrier : 49% stake ; Entry in Security • Allsec : Strengthening BPM
Slide 8: Quess Service Platforms
Quess Service Platforms Soft & Hard FM Services General Staffing Integrated Security Solutions Design & Landscaping Services Skill Development Operating Asset Management Industrial O&M Workforce IT Staffing Telecom Network O&M Management BPM Logistics Tech Services Payroll Processing & HR Compliance
Slide 9: Key Business Updates
Key Business Updates Q2FY20 Earnings Presentation 8
Slide 10: Q2 FY20 - Business Updates
Q2 FY20 - Business Updates • Strong revenue growth despite economic slowdown; Demonstrating “all weather” business model. Robust Revenue • Added 59k employees in H1 FY20 vs. full year addition of 56k in FY19 Growth • Headcount crossed 377k driven by robust growth in the Staffing business Strong Sale
Slide 11: Q2 FY20 – Corporate Updates
Q2 FY20 – Corporate Updates • In the Ahmedabad Smart City project, Quess had pending dues of ₹ 179 cr (loans & receivables outstanding); Since the JV partner Trimax IT went into bankruptcy, the payments did not come to Quess. Trimax Resolution • Quess has now completely resolved the issue by acquiri
Slide 12: Q2 FY20 – Corporate Updates
Q2 FY20 – Corporate Updates • Quess initiated an exercise to rationalize intercompany loans and advances - which stood at ₹ ~560 cr in the previous quarter. o Successfully reduced ₹ ~117 cr by repayment & conversion into CCDs* Rationalisation of o Conversion of another ₹ 274 cr into CCDs is underway
Slide 13: Financial Performance (Q2 and H1'FY20)
Financial Performance (Q2 and H1’FY20) Q2FY20 Earnings Presentation 12
Slide 14: Q2FY20 Financial Performance
Q2FY20 Financial Performance Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & EBITDA margin (%) • Up 27% YoY (23% organic) & 11% QoQ (9% organic) 2,650 12.0% 161 • Organic growth was driven by steady increase in Gen.Staffing (up 160 147 10.0% 44% 40% YoY), Skill development (up 95% YoY) and CLM (ConneQ
Slide 15: H1FY20 Financial Performance
H1FY20 Financial Performance Headcount (‘000s)# Revenue (in ₹ cr) EBITDA (in ₹ cr) & Headcount & Revenue : 377 5,045 EBITDA margin (%) • Headcount up 35% YoY (33% organic). 309 • Added 59k employees in H1’20 vis-a-vis a full YoY 4,060 320 12.0% 280 YoY 280 251 YoY year addition of 56k in FY19. 10.0%
Slide 16: Platform-wise Updates
Platform-wise Updates Q2FY20 Earnings Presentation 15
Slide 17: Workforce Management – Performance Snapshot
Workforce Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount (‘000s) Core : Associate Ratio (Gen. Staffing; 1:X) 1,667 237 255 1,394 1,487 202 333 1,208 1,285 38% 189 193 35% 330 330 290 300 YoY 15% YoY YoY Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2'19
Slide 18: Workforce Management – Revenue Distribution and Client Insights
Workforce Management – Revenue Distribution and Client Insights Revenue Distribution 3% 1% 2% 6% 4% BFSI 6% 6% Gen. Staffing Retail 14% 7% 30% India Telecom IT Staffing 7% Singapore By By Industrials By Business Sector Geography SEA Segment Skill FMCG Development 11% ME IT/ITES Others Others 78% 20%
Slide 19: Operating Asset Management – Performance Snapshot
Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount (‘000s) Rev. Realisation / Headcount / Month – IFM (‘000) 438 434 78 78 432 76 23 23 23 22 23 431 6% 0.5% 75 YoY YoY 427 YoY 73 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q2'19 Q3'19 Q4'19
Slide 20: Operating Asset Management – Revenue Distribution and Client Insights
Operating Asset Management – Revenue Distribution and Client Insights Revenue Distribution IT/ITES 9% 9% Education 19% 8% 13% Industrials IFM* 9% BFSI By Industrials By Business Segment Sector 18% Real estate Telecom 9% Telecom 78% 10% Healthcare & Hospitality 17% Others IFM is the largest business
Slide 21: Tech Services – Performance Snapshot
Tech Services – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) 551 BPM Headcount (ConneQt + Allsec; in ‘000)* 449 462 480 456 464 35 35 YoY 402 23% 363 377 384 28% 34 With Emerging Without Emerging 33 Business Business 33 8% Monster & DigiCare are the two Q2'19 Q3'19 Q4'1
Slide 22: Tech Services – Revenue Distribution and Client Insights
Tech Services – Revenue Distribution and Client Insights Diversified Revenue Base <1% 6% 2% 16% BFSI 9% IT Services India 28% 27% CLM 3% Retail 10% By 34% By IT/ITES By NAM Business 7% BreakFix Sector Geography Segment Industrials SEA HRO Telecom 64% Internet 22% 25% Others ME 47% CLM & IT Services
Slide 23: Emerging Businesses
Emerging Businesses Q2FY20 Earnings Presentation 22
Slide 24: Emerging Businesses
Emerging Businesses Reduction in Operating losses & Expanding Store Network Improvement in Key Operating Metrics Quarterly EBITDA doubled EBITDA Losses (in ₹ cr) • ₹ 3 cr sequential reduction in EBITDA losses. YoY to ₹ 1.9 cr driven by 130% 1.9 10 230 YoY increase in store count. EBITDA (in ₹ cr) •
Slide 25: Summary
Summary During the quarter, Quess delivered key wins on multiple fronts • Strong Revenue Growth (27% YoY) • Steady Profitability (6.1% EBITDA margin; Increase of 70 bps YoY) • Significant operating cash flow conversion (49%; increase of 700 bps YoY) • Successful Resolution of pending dues from Trima
Slide 26: Annexures
Annexures Q2FY20 Earnings Presentation 25
Slide 27: Income Statement (Q2 & H1 FY20)
Income Statement (Q2 & H1 FY20) (in ₹ cr) Quarterly Half-yearly Particulars Q2FY20 Q2FY19 Q1 FY20 YoY QoQ H1FY20 H1FY19 YoY Revenue from operations 2,650 2,092 2,395 27% 11% 5,045 4,060 24% Less: Employee benefit expense (2,170) (1,641) (1,934) 32% 12% (4,104) (3,190) 29% Cost of material (70) (84)
Slide 28: Balance Sheet
Balance Sheet (in ₹ cr) Particulars 30-Sep-19 31-Mar-19 Var % Non-current assets Fixed assets 539 236 130% Intangibles 1,583 1,435 10% Investments 86 90 (7%) Other non-current assets 987 846 17% Current assets Trade receivables 941 913 3% Cash and cash equivalents 636 624 2% Unbilled revenue 829 703
Slide 29: Segment Reporting
Segment Reporting (in ₹ cr) Quarter Quarter Quarter Quarter Quarter Full year Particulars Sep 2019 Jun 2019 Mar 2019 Dec 2018 Sep 2018 Mar 2019 Workforce Management Platform Revenue 1,667 1,487 1,394 1,285 1,208 5,035 EBITDA 90 89 95 77 69 309 EBITDA % 5.4% 6.0% 6.8% 6.0% 5.7% 6.1% Operating Asset M
Slide 30: Segment Reporting: Based on old Segments
Segment Reporting : Based on old Segments (in ₹ cr) Quarter Quarter Quarter Quarter Quarter Full year Particulars Sep 2019 Jun 2019 Mar 2019 Dec 2018 Sep 2018 Mar 2019 People Services Revenue 1,359 1,193 1,107 991 913 3,880 EBITDA 75 74 61 52 47 204 EBITDA % 5.6% 6.2% 5.5% 5.2% 5.1% 5.2% Technology
Slide 31: Thank You
THANK YOU Quess Corp Limited 3/3/2, Bellandur Gate, Sarjapur Road, Bangalore – 560095, Karnataka, India │ www.quesscorp.com 30