Quess Corp. Ltd. · NSE:QUESS
Quess — Q3 FY2020 Earnings Presentation
29 slides from Quess's earnings presentation, Jan 29, 2020
Slide 1: Cover letter to stock exchanges: Investors Presentation
January 29, 2020 auess The General Manager The WINNING TOGETHER 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 Jeejeebhoy
Slide 2: Winning Together – Investor Presentation Q3FY20
Winning Together Investor Presentation Q3FY20 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 Q3FY20 Key Highlights Financial Performance (Q3 and 9M’FY20) Platform-wise Highlights Emerging Businesses Key focus areas Q2FY20 Earnings Presentation Q3FY20 33
Slide 5: Company Overview
Company Overview Q2FY20 Earnings Presentation 4
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 385,000 FTE provider 2,450+ 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 385,000 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 Design & Landscaping Services General Staffing Integrated Security Solutions IT Staffing Industrial O&M Operating Asset Management Skill Development Workforce Telecom Network O&M Management BPM and CLM Recruitment Services Global Technology Solutions P
Slide 9: Q3FY20 Key Highlights
Q3FY20 Key Highlights Q2FY20 Earnings Presentation 8
Slide 10: Q3FY20 Highlights
Q3FY20 Highlights Financial Corporate Platform ▪ Strong Headcount growth, up 26% YoY to cross 385k ▪ Corporate initiatives are on track with significant ▪ Workforce Management: improvement in business operations & corporate structure ▪ Strong Revenue Growth up 36% YoY from ₹ 2,172cr to o Associate h
Slide 11: Financial Performance (Q3 and 9M'FY20)
Financial Performance (Q3 and 9M’FY20) Q2FY20 Earnings Presentation 10
Slide 12: Q3FY20 Financial Performance
Q3FY20 Financial Performance Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) Revenue: • Up 36% YoY (31% organic) & 11% QoQ (all organic) 2,950 YoY 36% 179 YoY 52% • YoY Organic growth was driven by steady increase in 162 12.0% QoQ 10% QoQ 11% 160 145 Gen.Staffing (up 37%) and CLM (Conneqt - up 13
Slide 13: 9MFY20 Financial Performance
9MFY20 Financial Performance Headcount (‘000s)# Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) Headcount & Revenue : • Headcount up 26% YoY (25% organic) 7,997 YoY 26% YoY 28% 489 YoY 12.0% 47% • Added 66k employees in 9M’20 vis-a-vis a 385 520 480 full year addition of 56k in FY19 306 6,232 440
Slide 14: Platform-wise Updates
Platform-wise Updates Q2FY20 Earnings Presentation 13
Slide 15: 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 34% 330 330 333 333 1,959 237 11% 1669 52% 193 202 YoY YoY 1285 1394 1488 YoY 300 Q3' 19 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Q3' 19 Q4' 19 Q
Slide 16: Workforce Management – Revenue Distribution and Client Insights
Workforce Management – Revenue Distribution and Client Insights Revenue Distribution 1% 2% 5% 4% 4% BFSI 9% Gen. Staffing 8% 14% 31% Retail India IT Staffing 8% Telecom By By Industrials By SEA Business Skill Development Sector Geography FMCG Segment 11% ME IT/ITES Others 78% Logistics 13% 21% Other
Slide 17: 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 4.0% 438 11% 431 432 YoY YoY 23 23 23 YoY 427 78 78 22 22 76 75 Q3' 19 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Q3' 19 Q4' 19 Q1
Slide 18: Operating Asset Management – Revenue Distribution and Client Insights
Operating Asset Management – Revenue Distribution and Client Insights Revenue Distribution 9% 11% 19% IT/ITES 13% 9% Education By IFM* Industrials Business By 10% BFSI Segment Industrials Sector 19% Real Estate Telecom 7% Telecom Healthcare & Hospitality 78% 9% 16% Others IFM* is the largest busines
Slide 19: Tech Services – Performance Snapshot
Tech Services – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Revenue/FTE (Conneqt ‘000s) 551 544 456 462 480 464 464 19% 377 384 402 34.3 YoY 9% 23% 32.5 32.1 33.1 31.5 Q3' 19 Q4' 19 Q1' 20 Q2' 20 Q3' 20 Monster & DigiCare are the two Emerging businesses in the Tech Q3'
Slide 20: Tech Services – Revenue Distribution and Client Insights
Tech Services – Revenue Distribution and Client Insights Diversified Revenue Base 2% 9% 3% 15% BFSI 5% CLM Retail 29% 4% India 9% By IT Services 3% Federal Government 48% BreakFix By 46% By NAM Business Telecommunications HRO 9% Sector Geography Segment IT/ITES Internet ROW Others E-commerce 69% 10%
Slide 21: Emerging Businesses
Emerging Businesses Q2FY20 Earnings Presentation 20
Slide 22: Emerging Businesses: Distribution Centers
Emerging Businesses Consistent Reduction in Operating losses & Expanding Store Network Improvement in Key Operating Metrics • Consistent sequential reduction in EBITDA EBITDA Losses (in ₹ cr) Our current service network losses 569 covers over 12,500 Pin codes 1.3 EBITDA (in ₹ cr) 10 10 Service Netwo
Slide 23: Focus areas
Focus areas ▪ Continue to focus on our financial metrics to improve our RoE ▪ Magna: Focus on improving revenue per person and Gross Margins ▪ IFM: Accelerate revenue growth through expansion of sales force and more aggressive addition of new logos ▪ North America: Accelerate growth by expanding sal
Slide 24: Annexures
Annexures Q2FY20 Earnings Presentation 23
Slide 25: Income Statement (Q3 & 9M FY20)
Income Statement (Q3 & 9M FY20) (in ₹ cr) Quarterly Nine months Particulars Q3FY20 Q3FY19 Q2FY20 YoY QoQ 9MFY20 9MFY19 YoY Revenue from operations 2950 2172 2651 36% 11% 7997 6232 28% Less: Employee benefit expense (2449) (1703) (2170) 44% 13% (6553) (4893) 34% Cost of material (72) (71) (70) 1% 3%
Slide 26: Balance Sheet
Balance Sheet (in ₹ cr) Particulars 31-Dec-19 31-Mar-19 Var % Non-current assets Fixed assets 521 236 121% Intangibles 1,619 1,435 13% Investments 84 90 (7%) Other non-current assets 869 846 3% Current assets Trade receivables 1,031 913 13% Unbilled revenue 895 703 27% Cash & cash equivalents 517 62
Slide 27: Segment Reporting
Segment Reporting (in ₹ cr) Quarter ended Year ended Particulars Dec 2019 Sept 2019 June 2019 Mar 2019 Dec 2018 Mar 2019 Workforce Management Platform Revenue 1,959 1,669 1,488 1,394 1,285 5,035 EBITDA 103 91 90 95 77 309 EBITDA % 5.3% 5.5% 6.0% 6.8% 6.0% 6.1% Operating Asset Management Platform Rev
Slide 28: Segment Reporting: Based on old Segments
Segment Reporting : Based on old Segments (in ₹ cr) Quarter ended Year ended Particulars Dec 2019 Sept 2019 June 2019 Mar 2019 Dec 2018 Mar 2019 People Services Revenue 1,618 1,361 1,196 1,107 991 3,880 EBITDA 84 76 75 61 52 204 EBITDA % 5.2% 5.6% 6.3% 5.5% 5.2% 5.3% Technology Services Revenue 853
Slide 29: Thank You
THANK YOU Quess Corp Limited 3/3/2, Bellandur Gate, Sarjapur Road, Bangalore – 560095, Karnataka, India │ www.quesscorp.com 28