Slide 1: Exchange filing cover letter: Investors Presentation
February 03, 2023 To, To, BSE Limited National Stock Exchange of India Limited Floor 25, Phiroze Jeejeebhoy Towers, “Exchange Plaza”, Bandra-Kurla Complex, Dalal Street, Bandra (East), Mumbai-400001 Mumbai-400051 Security Code- 539978 NSE Symbol- QUESS Dear Sir / Madam, Sub: Investors Presentation P
Slide 2: Investor Presentation Q3'FY23
Investor Presentation Q3’FY23 © Quess Corp Limited 2021. All rights reserved | 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 1 Highlights 2 Company Overview 3 Key Corporate and Financial Updates 4 Platform-wise Updates 5 Annexures © Quess Corp Limited 2021. All rights reserved | 3
Slide 5: Leading domestic private sector employer with ~505,000 FTE
GTS achieves highest-ever EBITDA Leading domestic private sector employer with ~505,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 4
Slide 6: Q3FY23 – Highlights
Q3FY23 – Highlights Q3 FY23 YoY Change Q3 FY23 YoY Change Headcount 505k 20% OCF ₹ 47 cr. 54% Net Debt Revenue ₹ 4,466 cr. 21% ₹ 68 cr. ₹ 40 cr. / (cash) EBITDA ₹ 145cr. 19% RoE 12.7% 196 bps 3.26% 161 bps Book value ₹ 183 11% % EBITDA per share PAT ₹ 86 cr. 3% EPS (dil.) ₹ 5.91 6% Note: All numbers
Slide 7: Q3FY23 Business Highlights
Q3FY23 Business Highlights Business Updates: On track to deliver 20% growth YoY across platforms Total Associate headcount reached 505K GTS achieves highest-ever Ebitda of ₹90 crore Rebranding of Monster to foundit, YoY sales growth of 40% Corporate Updates: DRP Hearing concluded for FY17-18 Announc
Slide 8: Q3FY23 Financial Highlights – YoY
Q3FY23 Financial Highlights – YoY Revenue ₹ 4,466cr 21% Revenue | % Growth EBITDA | % Growth ₹ 3,068 cr ₹ 86 cr EBITDA ₹ 145cr 19% WFM 21% 6% ₹ 561 cr ₹ 90 cr GTS EBITDA % 3.26 % 161 bps 20% 3% ₹ 689 cr ₹ 31 cr OAM PAT ₹ 86cr 3% 19% -15% ₹ 147 cr ₹ -27 cr PLB OCF ₹ 47cr 54% 55% - Note: All numbers a
Slide 9: Q3FY23 Financial Highlights – QoQ
Q3FY23 Financial Highlights – QoQ Revenue ₹ 4,466cr 4% Revenue | % Growth EBITDA | % Growth ₹ 3,068 cr ₹ 86 cr EBITDA ₹ 145cr 8% WFM 4% 9% ₹ 561 cr ₹ 90 cr GTS EBITDA % 3.26 % 10 bps 6% 7% ₹ 689 cr ₹ 31 cr OAM PAT ₹ 86cr 116% 6% 13% ₹ 147 cr ₹ -27 cr PLB OCF ₹ 47cr 31% -2% -12% Note: All numbers are
Slide 10: Company Overview
Company Overview © Quess Corp Limited 2021. All rights reserved | 9
Slide 11: From HR Services to a digitally-enabled Services Platform
From HR Services to a digitally-enabled Services Platform HR Services Business Services Platforms Phases 2007 - 2013 2014 - 2020 2020 - present # HC 61,000 384,000 505,000 Staffing Staffing Security Services Services Skilling Skilling Industrials WFM OAM Recruitment Recruitment BPO/CLM + HRO Facilit
Slide 12: Our operations are spread across synergistic platforms
Our operations are spread across synergistic platforms Workforce Global Technology Operating Asset Product Led Management Solutions Management Business General Staffing CLM Voice Facilities White Collar Jobs Professional Non voice BPO Security Blue Collar Jobs Staffing Overseas Staffing HRO Industri
Slide 13: Our focus is on Winning Together with our Customers, People and Investors
Our focus is on Winning Together with our Customers, People and Investors Build Scale - single operating platforms Achieving and sustaining 25% RoE for all organic business, brings in agility and speed in the way we work Continue Delivering 20% CAGR on OCF Measure digital revenues separately
Slide 14: Winning with Investors: The path to 20%
Winning with Investors: The path to 20% Sustained Growth • 20% EBITDA CAGR through enhanced sales capabilities, cutting edge technology, and improved cross-sell capability • Portfolio adjustments to turnaround or exit underperforming businesses 20% Return on Equity Higher EBITDA To PAT Conversion +
Slide 15: We enjoy massive macroeconomic tailwinds
We enjoy massive macroeconomic tailwinds India to remain fastest growing major economy in 2022@ Growing labour ~ 563$ million Indian labour force growing at 5% CAGR (2017-20) market One of the world’s largest labour force, experiencing a tectonic shift in composition and focus Formalisation^
Slide 16: We have a defined ESG framework
We have a defined ESG framework >93,400 employees hired in FY22 enjoyed first What’s good 6.0 million sq. ft. of green spaces maintained time social security benefits for society is across India in FY22 ~144,250 employees (~33%) employed in good for Responsible waste management, including Q4
Slide 17: Key Corporate and Financial Updates
Key Corporate and Financial Updates © Quess Corp Limited 2021. All rights reserved | 16
Slide 18: Update on Q3 operating environment
Update on Q3 operating environment Overall muted hiring environment • The foundit Insight Tracker saw weak hiring across IT – Hardware / Software (- 3%) and BPO/ ITES (-9%). Retail (+9%), Manufacturing (+6%) and Telecom (+5%) witnessed strong growth in hiring • Allsec payroll data shows no increase
Slide 19: Q3FY23 Financial Updates
Q3FY23 Financial Updates Revenue: • Up 21% YoY driven by General Staffing Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue (up 24%), Quess Singapore (up 50%) YoY 21% YoY 19% and Conneqt (up 20%) 4,466 QoQ 4% QoQ 8% • Up 4% QoQ, due to steady execution by 4,273 200 179 4.0% 6.2% 5.2% 5.
Slide 20: Platform-wise Updates
Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 19
Slide 21: Workforce management – Performance Snapshot
Workforce management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount# (in ‘000) Core: Associate FTE^(Gen Staff- 1:X) 2,943 3,068 25% 2,545 2,644 2,758 21% 379 459 8% YoY 376 YoY 350 YoY 316 428 431 430 304 424 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22
Slide 22: Workforce Management – Revenue Distribution and Customer Insights
Workforce Management – Revenue Distribution and Customer Insights 2% Revenue Distribution 10% 12% General Staffing < 2 Years 7% IT Staffing India Customer-wise 2-5 Years Revenue Distribution Tenure Overseas Staffing 36% (# Customers) 54% > 5 Years Others 79% Staffing constitutes 98% of the revenue G
Slide 23: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs Cr) Revenue / Employee (Rs ‘000) 20% 14% 112 110 111 108 3% 529 561 17% 17% 16% 16% 104 468 477 507 YoY YoY 7% 7% 8% 12% 11% 26% 28% 27% 27% 28% Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22
Slide 24: Global Technology Solutions – Revenue Distribution and Customer Insights
Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 7% 12% 4% BFSI 7% IT/ITES By By India 9% 47% Retail Sector Geography NA Telecom Industrials 26% Others 88% Revenue-base diversified across sectors India is the main focus Customer Insights (CLM and Non-v
Slide 25: Operating Asset Management – Performance Snapshot
Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (Rs Cr) Associate Headcount# (in ‘000) Revenue/Headcount/Month (Rs '000) 689 9% 9% 651 19% 23 23 23 24 25 578 577 597 92 YoY YoY YoY 87 90 84 85 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 E
Slide 26: Operating Asset Management – Revenue Distribution and Customer Insights
Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution Industrials 9% 19% 4% Education IFM 6% 31% IT/ITES By 7% By Business Security Services BFSI Sector 21% Segment Telecom 60% Others 15% Healthcare & Hospitality 15% Real Estate 15% Others IFM* is the largest b
Slide 27: Product Led Business – Performance snapshot
Product Led Business – Performance snapshot Product Led Business foundit Revenue (Rs Cr) Sales (Rs Cr) Top 1k Order Renewal Rate 55% 40.9 40% 26% 150 147 33.9 103% 101% 86% 92% 76% 117 YoY 29.2 33.1 YoY YoY 95 94 26.6 # New Orders Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 2,306 2,4
Slide 28: Annexures
Annexures © Quess Corp Limited 2021. All rights reserved | 27
Slide 29: Income Statement
Income Statement Particulars ( in ₹ cr ) Q3 FY23 Q3 FY22 Q2 FY23 YoY QoQ Revenue from operations 4,466 3,685 4,273 21% 4% Less: Employee benefit expense (3,809) (3,102) (3,658) 23% 4% Cost of material (140) (77) (129) 81% 8% Other expenses (371) (326) (351) 14% 6% Total expenses (4,320) (3,506) (4,1
Slide 30: Balance Sheet
Balance Sheet Particulars 31-Dec-22 31-Mar-22 Var % Non-current assets Fixed assets 627 498 26% Intangibles 1,177 1,174 0% Investments 3 10 -74% Other non-current assets 666 568 17% Current assets Trade receivables 1,616 1,270 27% Unbilled revenue 1,263 1,062 19% Cash and cash equivalents 565 604 -6
Slide 31: Segment Reporting
Segment Reporting Quarter Ended Particulars ( in ₹ cr) Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 Workforce Management Revenue 3,068 2,943 2,758 2,644 2,545 Reported EBITDA 86 79 94 94 81 Reported EBITDA % 2.80% 2.69% 3.41% 3.56% 3.18% Global Technology Services Revenue 561 529 507 477 468 Reported EBITDA 9
Slide 32: India's largest business services platform, driving productivity for customers
India’s largest business services platform, driving productivity for customers Front End Processes Support Processes Marketing In-store & Omni channel CLM & Staffing & Compliance Facilities Services* Field Sales* Backoffice Services Payroll Tech & Services Maintenance Collections* Installation & Ind
Slide 33: We lead with technology and innovation
We lead with technology and innovation 1 Digital Hire-to-Retire 2 Technology-led Frontline Productivity Sourcing Digital sourcing via auto-hiring engines, with digital pre-screening and assessment Digital WorQ WorkTech platform to remotely via Qjobs and foundit workflow assign & monitor tasks, d
Slide 34: Our customer proposition is unrivalled
Our customer proposition is unrivalled Scale Agility Technology ~505,000* associates and employees An entrepreneurial 15 year old startup Significant frontline productivity deployed over 600+ cities capabilities (e.g., WorQ, Qjobs, Widest repertoire of services, including International ope
Slide 35: Winning Together
Winning Together © Quess Corp Limited 2021. All rights reserved | 34
Slide 36: About Quess Corp
About Quess Corp Quess Corp Limited (Quess) is India’s leading business services provider, leveraging our extensive domain knowledge and future-ready digital platforms to drive client productivity through outsourced solutions. We provide a host of technology enabled staffing and managed outsourcing