Slide 1: Exchange filing cover letter for investor presentation
November 06, 2023 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 Pursuant
Slide 2: Investor Presentation Q2'FY24
Investor Presentation Q2’FY24 6th November 2023 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: Leading domestic private sector employer with ~547k FTE
Leading domestic private sector employer with ~547k FTE PAT growth of 79% YoY with EBITDA growth of 21% YoY GTS platform EBITDA grew by 4% QoQ to ₹ 104 Cr OAM platform EBITDA grew by 14% QoQ to ₹ 35 Cr WFM platform reached 430K Headcount Q2FY20 Earnings Presentation
Slide 5: Contents
Contents 1 Key Corporate Highlights 2 Platform-wise Updates 3 Financials 4 Company Overview 5 ESG Updates ©2023 Quess Corp Limited. All rights reserved. 4
Slide 6: Key Corporate Highlights
01 Key Corporate Highlights ©2023 Quess Corp Limited. All rights reserved. 5
Slide 7: Q2'FY24 – Financial Highlights
Q2’FY24 – Financial Highlights Figures In ₹ Cr Revenue %YoY QoQ% EBITDA %YoY QoQ% WFM 3,315 13% 3% WFM 87 10% 5% GTS 584 11% 4% GTS 104 23% 4% OAM 705 8% 2% OAM 35 26% 14% PLB 143 5% 13% PLB (20) 18% 27% Consolidated Revenue 4,748 11% 3% EBITDA 164 21% 6% PAT 71 79% 47% EPS in ₹ 4.85 71% 50% Cash/(N
Slide 8: Q2'FY24 Financial Updates (Consolidated)
Q2’FY24 Financial Updates (Consolidated) Revenue (In ₹ Cr) EBITDA (In ₹ Cr) & margin (%) 11% YoY 21% 4,600 4,748 152 154 164 4,466 4,440 135 145 4,273 3.2% 3.3% 3.4% 3.4% 3.4% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 3% 6% PAT (In ₹ Cr) & margin (%) EPS (In ₹) 79% 71% 5.9 86 4.9 7
Slide 9: Platform wise Updates
02 Platform wise Updates ©2023 Quess Corp Limited. All rights reserved. 8
Slide 10: Workforce Management – Performance Snapshot
Workforce Management – Performance Snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 13% 10% 86 86 87 3,315 3,221 83 79 3,068 3,062 2,943 2.8% 2.8% 2.7% 2.6% 2.6% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 3% 5% Key developments • 130 new contracts added
Slide 11: Workforce Management – Operational Performance
Workforce Management – Operational Performance Associate Headcount# (in ‘000) Associate: Core FTE^(Gen Staff) 14% 1% 430 512 387 404 459 469 376 379 430 435 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 6% (7)% F&F 20 25 27 29 31 Collect & Pay - Headcount SG&A / Revenue (IT Staff) (1)%
Slide 12: Workforce Management – Segment wise Distribution
Workforce Management – Segment wise Distribution Segment-wise distribution 1% 2% 1% 1% 11% 6% Revenue Headcount distribution distribution 82% 96% General Staffing IT Staffing India Overseas Staffing Others General Staffing IT Staffing India Overseas Staffing Others ©2023 Quess Corp Limited. All righ
Slide 13: Workforce Management – Customer Insights
Workforce Management – Customer Insights Customer Insights (Gen. Staffing) BFSI 5% 24% 11% Retail 2% 33% Telecom Customer Top 10 Sector 9% Industrials Concentration 56% Next 40 Concentration FMCG (% Revenue) Others (% Revenue) 24% 13% Logistics 3% IT/ITES 23% Others Customer Insights (QITS) IT/ITES
Slide 14: Global Technology Solutions
Global Technology Solutions Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 11% 23% 584 571 561 563 104 100 95 90 529 85 17% 18% 18% 16% 16% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 4% 4% Key developments • 73 new contracts added during the Qtr • Digital IT Se
Slide 15: Global Technology Solutions
Global Technology Solutions Operating Metrics Revenue Distribution Revenue / Employee (In 000’s) 9% 11% 108 109 110 113 150 104 10% 11% 14% 16% 14% 100 12% 14% 12% 50 11% 11% 0 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 27% 28% 31% 32% 31% 3% HRO Records Processed (Allsec: In ₹ lacs) 12 % 48% 45% 44% 45% 46% 38
Slide 16: Global Technology Solutions
Global Technology Solutions Diversified Across Sectors 7% 4% 4% 6% 6% 5% 9% 10% Revenue-base 51% Customer-base 52% 26% 21% BFSI IT/ITES Retail Industrials Telecom Others BSFI IT/ITES Retail Telecom Industrials Others ©2023 Quess Corp Limited. All rights reserved. 15
Slide 17: Global Technology Solutions – Customer Insights
Global Technology Solutions – Customer Insights Customer Insights (CLM and Non-voice BPO) 12% 4% 4% 4% 7% Customer 8% Sector Concentration 51% Concentration (% Revenue) (% Revenue) 37% 7% 66% Top 10 Next 40 Others BFSI Ecommerce Telecom/Media Manufacturing Retail/FMCG IT/ITES Others ©2023 Quess Corp
Slide 18: Operating Asset Management – Financial Performance
Operating Asset Management – Financial Performance Revenue (in ₹ Cr) EBITDA from operations (in ₹ Cr) 8% 26% 705 689 690 35 684 31 31 30 28 651 4.98% 5% 4.3% 4.5% 4.4% 4.5% 4% Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 2% 14% Key developments • OAM delivers 8% revenue and 26% EBITDA
Slide 19: Operating Asset Management – Operational Performance
Operating Asset Management – Operational Performance Associate Headcount# (in ‘000) Revenue/Headcount/Month (₹ '000) 8% 0% 24 25 25 25 26 30 20 92 92 91 10 90 90 0 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 1% Associate to Core ratio 13% 110 107 150 92 100 104 100 50 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 0 0% Q2'23 Q3'2
Slide 20: Operating Asset Management – Sector-wise Distribution
Operating Asset Management – Sector-wise Distribution Distribution 6% 12% 9% 2% 6% 5% By 44% By Revenue Headcount 19% 21% 60% 16% IFMS Security Services IFMS - Others IFMS - F&B Industrial Services Telecom Network Services Security Services Industrial Services Telecom Network Services Others Others
Slide 21: Operating Asset Management – Customer Insights
Operating Asset Management – Customer Insights Customer Insights (IFM + Security) 6% 9% 21% 27% 38% 11% Sector Customer Concentration Concentration (% Revenue) 19% 15% 19% 35% Industrials IT/ITES Education BFSI Top 10 Next 40 Others Others Real Estate Healthcare & Hospitality Telecom Diversified Cus
Slide 22: Product Led Business – Performance snapshot
Product Led Business – Performance snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations* (In ₹ Cr) (5)% 150 147 143 123 126 -16 -18 -18 -19 -21 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 13% *Excluding non cash ESOP charges Key developments • Robust Sales growth seen
Slide 23: Product Led Business – Foundit Snapshot
Product Led Business – Foundit Snapshot Traffic* (Mn) Consumption (Mn) (15)% (17)% 14.7 10.2 9.4 12.0 12.5 89 85 84 77 74 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 4% (4)% New Registration* (‘000s) Job Posting (‘000s) (27)% 102% 622 181 331 365 359 440 180 212 310 456 Q2'23 Q3'23 Q
Slide 24: Financials
03 Financials ©2023 Quess Corp Limited. All rights reserved. 23
Slide 25: Income Statement
Income Statement Particulars ( in ₹ Cr) Q2 FY24 Q2 FY23 YoY Q1 FY24 QoQ Total Revenue 4,748 4,273 11% 4600 3% Reported EBITDA 164 135 21% 154 6% Reported EBITDA % 3.4% 3.2% 29bps 3.3% 10bps Depreciation & amortisation 70 68 3% 69 2% Interest 28 26 7% 27 3% Other Income 15 9 75% 4 270% Profit before
Slide 26: Balance Sheet
Balance Sheet Particulars ( in ₹ Cr) 31-Mar-21 31-Mar-22 31-Mar-23 30-Sep-23 Assets Fixed Assets & Intangibles 1,536 1,672 1,814 1,798 Other Non-Current Assets 595 579 795 843 Current Assets Trade Receivables & Unbilled 1,800 2,332 2,689 2,909 Revenue Cash and Cash Equivalent 614 604 613 611 Loan an
Slide 27: Statement of Cashflow
Statement of Cashflow Particulars ( in ₹ Cr) 31-Mar-21 31-Mar-22 31-Mar-23 30-Sep-23 Profit for the year 74 251 223 119 Cash generated from operations 551 641 666 273 Income taxes (paid)/refund received 165 (87) (199) (41) Net cashflow from Operating Activities (A) 716 554 466 232 Cashflow from Inve
Slide 28: Segment Reporting
Segment Reporting Quarter Ended Particulars ( In ₹ Cr) Sep-22 Dec-22 Mar-23 Jun-23 Sept-23 Workforce Management Revenue 2,943 3,068 3,062 3,221 3315 EBITDA 79 86 86 83 87 EBITDA % 2.69% 2.80% 2.81% 2.58% 2.63% Global Technology Services Revenue 529 561 571 563 584 EBITDA 85 90 95 100 104 EBITDA % 15
Slide 29: Company Overview
‘04 ) Company Overview QUESS
Slide 30: India's largest business services platform, driving productivity for customers
India’s largest business services platform, driving productivity for customers In-store & Industrial Operations Field Sales* Collections* & Maintenance Front End Processes Marketing Omni channel CLM & Installation & After Services* Backoffice Services Sales Services* Compliance Tech Manned & Electro
Slide 31: We lead with technology and innovation
We lead with technology and innovation Digital Hire-to-Retire Technology-led Frontline Productivity Sourcing Digital workflow management Digital sourcing via Qjobs and foundit WorQ WorkTech platform to remotely assign & monitor tasks Recruiting Digitally skilling End-to-end ATS ReQruit platform for
Slide 32: 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 61,000 384,000 547,000 Staffing Staffing Security Services Skilling Skilling Industrials OAM Recruitment Recruitment BPO/CLM + HRO WFM Services Facilit
Slide 33: Our operations are spread across synergistic platforms
Our operations are spread across synergistic platforms Workforce Management Operating Asset Management General Staffing Facilities Professional Staffing Security Industrials Overseas Staffing Telecom Global Technology Solutions Product Led Business CLM Voice White Collar Jobs Non voice BPO Blue Coll
Slide 34: The Winning Edge: How Our Customer Proposition Sets Us Apart
The Winning Edge: How Our Customer Proposition Sets Us Apart Scale Agility Technology ~547,000* associates and employees An entrepreneurial Significant frontline productivity deployed over 600+ cities 15 year old startup capabilities (e.g., WorQ, Qjobs, Taskmo) International operations in Southeast
Slide 35: Our focus is on Winning Together with our Customers, People and Investors
Our focus is on Winning Together with our Customers, People and Investors Customers Investors Build Scale - Single operating Achieve and platforms for all organic business sustain 20% RoE Measure digital Deliver 20% revenues separately CAGR on OCF Annual CSAT Aspirational EBITDA of 6% across all bus
Slide 36: Winning with Investors: The path to 20% Return on Equity
Winning with Investors: The path to 20% Sustained Growth 20% EBITDA CAGR through sales efficiency, technology and cross-sell capability 20% Return Portfolio readjustments on Equity Higher EBITDA To PAT Conversion Operating leverage through scale and technology Optimal debt leverage 20% Y-o-Y OCF gro
Slide 37: We enjoy massive macroeconomic tailwind
We enjoy massive macroeconomic tailwind Growing Labour Market Staffing Industry** India to remain one of the fastest growing Flexi Staffing Industry registered 14% YOY growth in 2022- major economy in 2023@ 23 and added 1.77 lakhs new employment ~ 563 million labour force, experiencing a General Sta
Slide 38: New Joinee workforce snapshot
New Joinee workforce snapshot Sector wise additions Additions in leading States Gender (Net addition of 21,390) MAHARASHTRA 2,744 Male Female 5,508 Industrials KERALA 1,717 82% 18% 4,433 Ecom and Logistics UTTAR PRADESH 1,458 JHARKHAND 1,277 Joinee 3,713 FMCG / FMCD KARNATAKA 1,257 Transfer Sourcing
Slide 39: ESG Updates
05 ESG Updates ©2023 Quess Corp Limited. All rights reserved. 38
Slide 40: ESG Progress – Q2 FY24
ESG Progress – Q2 FY24 What’s good for society is good for Quess Responsible Citizen Trusted Institution The People Company Environmentally Conscious ©2023 Quess Corp Limited. All rights reserved. 39
Slide 41: ESG Progress – Q2 FY24
ESG Progress – Q2 FY24 What’s good for society is good for Quess Diverse Workforce Promoting Inclusivity Nurturing Work Environment Digitizing Job Discovery 98K employees are women Over 7.2K active PWD Great place to work® re-certified Monthly Avg. of 6.2K job openings (29% of Core & 18% of employee
Slide 42: ESG Progress – Q2 FY24
ESG Progress – Q2 FY24 What’s good for society is good for Quess Community Education Community Health School Upgradation 75 Schools covered with over 92k Over 35,000 Students medical screening 15K+ Students benefitted from buildings books distributed in FY24 conducted in FY24 and playgrounds being m
Slide 43: ESG Progress – Q2 FY24
ESG Progress – Q2 FY24 What’s good for society is good for Quess Environmentally Positive Responsible Waste Management Green Spaces Over 300K devices repaired /refurbished 7.3K+ Kgs of e-waste and over 7.5K+ 9.9 Million + sq. ft of green by Digicare in Q2 FY24 Kgs of paper waste responsibly space ma
Slide 44: ESG Progress – Q2 FY24
ESG Progress – Q2 FY24 What’s good for society is good for Quess Robust Code Quality and Data Privacy of Conduct Information security and Cyber Security Integrity Week Whistleblower/ Data Privacy/ Quess Corp is ISO Cyber Security Council with C- 3,403 digital learning Cyber-security & Human 37001: 2
Slide 45: Winning Together
Winning Together © Quess Corp Limited 2023. All rights reserved | 44
Slide 46: 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