Quess Corp. Ltd. · NSE:QUESS

Quess — Q1 FY22 Earnings Presentation

33 slides from Quess's earnings presentation, Aug 5, 2021

  1. Slide 1: Cover letter to stock exchanges: Investors Presentation

    August 5, 2021 The General Manager The Manager Department of Corporate Services, Listing Department, 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 Cod

  2. Slide 2: Winning Together – Investor Presentation Q1FY22

    Winning Together Investor Presentation Q1FY22 © Quess Corp Limited 2021. All rights reserved | 1

  3. 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

  4. Slide 4: Contents

    Contents 1 Company Overview 2 Key Highlights 3 Financial Performance 4 Platform-wise Highlights © Quess Corp Limited 2021. All rights reserved | 3

  5. Slide 5: Company Overview

    Company Overview © Quess Corp Limited 2021. All rights reserved | 4

  6. Slide 6: Leading domestic private sector employer, with ~369,000 FTE

    Leading domestic private sector employer, with ~369,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 5

  7. Slide 7: 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 & Indust

  8. Slide 8: We operate across 3 synergistic platforms

    We operate across 3 synergistic platforms Workforce Management Global Technology solutions Operating Asset management  General staffing across Retail, BFSI,  Platform Business: Insurtech Platform  Facilities management solutions (e.g., Telecom, Industrial, etc., mostly grey in North America and P

  9. Slide 9: Our proposition is unrivalled

    Our proposition is unrivalled Scale Agility Technology  ~369,000* associates and employees  An entrepreneurial 13-year old startup  Significant ongoing investments in over 600+ cities frontline productivity capabilities (e.g.,  Widest repertoire of services, including  International operations

  10. Slide 10: 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 Monster workflow assign & monitor tasks, d

  11. Slide 11: Our focus is on Winning Together with our Customers, People and Investors

    Our focus is on Winning Together with our Customers, People and Investors  Achieving and sustaining 20% RoE  Leveraging technology to become  Delivering 20% CAGR on OCF extensions of our customers’ operations  Enhancing investor value through judicious capital allocation  Innovating our service

  12. Slide 12: 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 20% Return on Equity businesses Higher EBITDA To PAT Conversion 20

  13. Slide 13: We enjoy massive macroeconomic tailwinds

    We enjoy massive macroeconomic tailwinds Growing labour  ~ 493 million Indian labour force growing at 5.7% CAGR (2015-20) market  One of the world’s largest labour forces, experiencing a tectonic shift in composition and focus  Formalisation^ to increase from 20.8% currently to 30.3% by 2025, Inc

  14. Slide 14: We are a conscientious company

    We are a conscientious company  >106,000 employees (30%) hired in FY21 What’s good  4.2 million sq. ft. of green spaces maintained enjoyed first time social security benefits for society is across India good for  ~95,000 employees (~27%) hired in FY21 were Quess  Business model drives e-waste re

  15. Slide 15: Update on Q1 operating environment

    Update on Q1 operating environment  Overall, muted hiring environment • The Monster Employment Index (MEI)* of hiring activity increased from 266 in Mar ‘21 to 271 in Jun ‘21, a net increase of 2% after posting a dip of 3% in Apr-21 • IT, Telecom and Retail sectors have shown strong improvement in

  16. Slide 16: Key Corporate and Financial Updates

    Key Corporate and Financial Updates © Quess Corp Limited 2021. All rights reserved | 15

  17. Slide 17: Q1'22 Corporate Highlights

    Q1’22 Corporate Highlights  Acquired balance 30% stake in ConneQt for a consideration of ₹ 208cr in April ‘21  Announced and paid first-ever dividend at ₹ 7 per share, in line with new dividend policy  Board approved Scheme of Amalgamation with three wholly owned subsidiaries viz. MFX Infotech Pr

  18. Slide 18: Q1'22 Financial Highlights

    Q1’22 Financial Highlights Revenue:  Up 24% YoY driven by General Staffing (up Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) SG&A / Revenue 26%), ConneQt (up 36%), and Industrials (up 3,005 2,987 YoY 24% YoY 13% 32%) QoQ -0.6% 200 QoQ 7.0%288% 157 7%  Down 0.6% QoQ due to seasonality and 160

  19. Slide 19: Platform-wise Updates

    Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 18

  20. Slide 20: Workforce management – Performance Snapshot

    Workforce management – Performance Snapshot Financial Metrics Operating Metrics Revenue (Rs. Cr) Associate Headcount* ('000) Core: Associate (Gen Staffing; 1:X) 253 256 2,011 2,005 347 350 1,843 14% 11% 1,618 1,686 24% YoY 337 YoY YoY 224 226 216 317 316 Q1'21 Q2'21 Q3'21 Q4' 21 Q1' 22 Q1'21 Q2'21 Q

  21. Slide 21: Workforce Management – Revenue Distribution and Customer Insights

    Workforce Management – Revenue Distribution and Customer Insights Revenue Distribution 10% 12% 2% 8% GS < 2 Years QITS Customer-wise Revenue 51% 2-5 Years Tenure Distribution TSD > 5 Years 37% (# Customers) Simpliance Overseas Staffing 80% Good customer loyalty & healthy new customer addition: GS ac

  22. Slide 22: WFM is set to be a strong growth engine

    WFM is set to be a strong growth engine Quess covers the entire gamut of: employment solutions: Comprehensive Staffing Solutions  Staffing  Value added offerings  Gig Employment  Training and Deployment  In conjunction with other Quess vertical, WFM has been able to provide ‘Total Employment So

  23. Slide 23: Global Technology Solutions – Performance Snapshot (excl. Emerging Businesses)

    Global Technology Solutions – Performance Snapshot (excl. Emerging Businesses) Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs. Cr) Revenue / Employee (‘000) 12% YoY 457 459 461 135 425 15% 132 377 22% YoY 19% 16% 16% 16% 128 122 21% 21% 20% 114 23% 23% 22% 23% 25% 23% 22% Q1'21

  24. Slide 24: Global Technology Solutions – Revenue Distribution and Customer Insights

    Global Technology Solutions– Revenue Distribution and Customer Insights (excl. Emerging Businesses) Diversified Revenue Base 15% BFSI 27% 6% IT/ITES 6% By Retail By India Sector 53% Geography Industrials NAM 9% Telecom 73% 11% Others Revenue-base diversified across sectors India is the main focus Cu

  25. Slide 25: Operating Asset Management – Performance Snapshot

    Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (Rs. Cr) Revenue/Headcount/Month ('000) 26% 428 465 465 23 427 YoY Associate Headcount ('000) 22 16% 368 19 20 20 YoY 70 70 69 68 Q1'21 Q2'21 Q3'21 Q4' 21 Q1' 22 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 EBITDA (in ₹ c

  26. Slide 26: Operating Asset Management – Revenue Distribution and Customer Insights

    Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 11% Industrials 21% 24% IFM* 3% IT/ITES 6% BFSI By Industrials w/o Telecom By Education 6% Business Telecom 10% Sector Healthcare & Hospitality Segment 61% Telecom 11% 17% Security services 12% Real Estate 1

  27. Slide 27: Emerging Businesses

    Emerging Businesses Key Operational Metrics (Q1 FY 22) Active Jobs (in’000) New customer Sales (₹ Cr.) Cities Coverage PIN codes Coverage  213 K New Jobs added (up 46% QoQ) 22% 10.2 10% 355 433  280 K Candidates Acquired (up 81% QoQ) QoQ QoQ 16,891  1,300 + External customers using Q Jobs (up 53%

  28. Slide 28: Annexures

    Annexures © Quess Corp Limited 2021. All rights reserved | 27

  29. Slide 29: Income Statement

    Income Statement Var% Particulars ( in ₹ cr ) Q1 FY22 Q1 FY21 Q4 FY21 YoY QoQ Revenue from operations 2,987 2,409 3,005 24% -1% Less: Employee benefit expense (2,599) (2,084) (2,563) -25% -1% Cost of material (47) (33) (57) -43% 17% Other expenses (194) (164) (346) -18% 44% Total expenses (2,840) (2

  30. Slide 30: Balance Sheet

    Balance Sheet Particulars ( in ₹ cr ) 30-Jun-21 31-Mar-21 Var % Non-current assets Fixed assets 418 431 -3% Intangibles 1,105 1,104 0% Investments 4 4 0% Other non-current assets 582 591 -2% Current assets Trade receivables 915 894 2% Unbilled revenue 965 905 7% Cash and cash equivalents 540 614 -12

  31. Slide 31: Segment Reporting

    Segment Reporting Quarter Ended Particulars ( in ₹ cr ) Jun-21 Mar-21 Dec-20 Sep-20 Jun-20 Workforce Management Platform Revenue 2,005 2,011 1,843 1,686 1,618 EBITDA 70 37 68 63 60 EBITDA % 3.47% 1.85% 3.70% 3.72% 3.70% Normalized EBITDA 74 Normalized EBITDA % 3.66% Global Technology Services Platfo

  32. Slide 32: Winning Together – In your win lies our win

    Winning Together In your win lies our win © Quess Corp Limited 2021. All rights reserved | 31

  33. Slide 33: 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

Quess — Q1 FY22 Earnings Presentation on 6ix