Quess Corp. Ltd. · NSE:QUESS
Quess — Q4 FY21 Earnings Presentation
37 slides from Quess's earnings presentation, Jun 3, 2021
Slide 1: Cover letter to stock exchanges: Investors Presentation
June 3, 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 Code-
Slide 2: Winning Together – Investor Presentation Q4FY21 & FY21
Winning Together Investor Presentation Q4FY21 & FY21 © 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 Company Overview 2 Key Highlights 3 Financial Performance 4 Platform-wise Highlights © Quess Corp Limited 2021. All rights reserved | 3
Slide 5: Company Overview
Company Overview © Quess Corp Limited 2021. All rights reserved | 4
Slide 6: India's largest domestic private sector employer, ~363,000 FTE
India’s largest domestic private sector employer, with ~363,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 5
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
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 ▪ BPM solutions (CLM, SSC, ▪ Facilities management Retail, BFSI, Telecom, #1 in India & F&A, Collections) for Top 3 in solutions (e.g., janitorial, Top 3 in
Slide 9: Our proposition is unrivalled
Our proposition is unrivalled Scale Agility Technology ▪ ~363,000* 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 i
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
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
Slide 12: Winning with Investors: The path to 20%
Winning with Investors: The path to 20% Top line Growth ▪ 20% EBITDA growth 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 PBT Conversion 2
Slide 13: We enjoy massive macroeconomic tailwinds
We enjoy massive macroeconomic tailwinds ▪ ~ 493 million Indian labour force growing at 5.7% CAGR (2015-20) Growing labour ▪ One of the world’s largest labour forces, experiencing a tectonic shift in composition and market focus ▪ Formalisation^ to increase from 20.8% currently to 30.3% by 2025 Incr
Slide 14: Impending labour reforms will accelerate formalization
Impending labour reforms will accelerate formalization Employee status Wages Term and tenure Benefits Compliance Compliance Needs ▪ Delineate worker vis-à- ▪ Re-configure wage ▪ Explore usage of Fixed ▪ Implement changes in ▪ Upgrade regulation and vis Supervisor/Manager structures Term Employment g
Slide 15: 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
Slide 16: We have been at the frontline in the battle against COVID
We have been at the frontline in the battle against COVID Our Employees Our Society ~30% of our frontline warriors in OAM platform Keeping India clean with housekeeping and steri- vaccinated to date fumigation services QRTs (Quick Reaction Teams) instituted nationwide to Kept public utilities such a
Slide 17: Key Highlights
Key Highlights © Quess Corp Limited 2021. All rights reserved | 16
Slide 18: Update on Q4 operating environment
Update on Q4 operating environment ▪ Overall, healthy hiring environment • Our proprietary same-customer payslip data indicates total employment in the large enterprise segment ended the year flat YoY • The Monster Employment Index (MEI)* of hiring activity decreased from 296 in Mar ‘20 to 266 in Ma
Slide 19: FY'21 Highlights
FY’21 Highlights Business Financial Corporate ▪ Exiting the year with strong business momentum ▪ Significant improvements in operational rigour, ▪ Announced first-ever dividend at ₹ 7 per share, despite a rocky start: cash generation, and debt position. Strong H2 in line with new dividend policy • W
Slide 20: Financial Performance
Financial Performance © Quess Corp Limited 2021. All rights reserved | 19
Slide 21: FY'21 Highlights
FY’21 Highlights Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) SG&A / Revenue ▪ Revenue flat versus FY20 despite 19.5% QoQ de-growth in Q1, indicating resurgence in 10,991 10,837 658 growth 680 12.0%12% YoY 640 577 7% 600 10.0% 6% Profitability: 560 458 520 480 8.0% ▪ Provision of ₹ 11
Slide 22: Q4'21 Highlights
Q4’21 Highlights Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) SG&A / Revenue ▪ Revenue up 7.0% QoQ driven by General YoY 2,995 3,005 YoY 78% Staffing (up 11%), IFM (up 6%), and QoQ 7% 2,808 200 169 QoQ 12.0%75% Industrials (up 11%) 157 7% 151 10.0% Profitability: 160 6% 8.0% 5% ▪ Norm
Slide 23: Platform-wise Updates
Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 22
Slide 24: Workforce management – Performance Snapshot
Workforce management – Performance Snapshot Financial Metrics Operating Metrics Associate Headcount ('000) Core:Associate (Gen Staffing; 1:X) Revenue (₹ Cr) 347 12% 3% 2,039 1,843 2,011 9% 262 253 337 1,686 224 216 226 QoQ QoQ 1,618 QoQ 330 317 316 Q4' 20 Q1'21 Q2'21 Q3'21 Q4' 21 Q4' 20 Q1'21 Q2'21
Slide 25: Workforce Management – Revenue Distribution and Customer Insights
Workforce Management – Revenue Distribution and Customer Insights Revenue Distribution 1% 6% BFSI 9% 2%4% 3% 5% Retail 13% 35% Telecom General Staffing 10% India By Industrials IT Staffing By By Asia-Pacific Business FMCG 8% Sector Geography Segment Skill Development Middle-East IT/ITES Others Logis
Slide 26: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot (Excl. Emerging Businesses) Financial Metrics Revenue Distribution Operating Metrics Revenue (in ₹ cr) Revenue / Total HC ('000) 454 425 457 459 134 134 377 129 16% 16% 15% 122 15% 19% 114 21% 23% 21% 21% 23% Q4' 20 Q1'21 Q2'21 Q3'21 Q4' 21 23% 25%
Slide 27: Conneqt transaction completed at <4x EV/EBITDA
Conneqt transaction completed at <4x EV/EBITDA Overview of Conneqt Post-acquisition performance ▪ India’s second largest domestic CLM, and largest professional ▪ 14% revenue CAGR, 19% operating EBITDA CAGR pre-COVID collections services provider. Rapidly growing F&A practice ▪ Net Promoter Score inc
Slide 28: Global Technology Solutions – Revenue Distribution and Customer Insights
Global Technology Solutions– Revenue Distribution and customer Insights (Excl. Emerging Businesses) Diversified Revenue Base 19% BFSI 31% Retail 6% By India By 1% 52% IT/ITES Geography Sector NAM 13% Industrials 69% Telecom 9% Others Revenue-base diversified across sectors India is the main focus Cu
Slide 29: Operating Asset Management – Performance Snapshot
Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount ('000) Rev. Realization/Headcount/Month ('000) 465 9% 428 427 428 80 4% 16% QoQ 23 23 368 QoQ 20 20 QoQ 70 69 19 68 67 Q4' 20 Q1'21 Q2'21 Q3'21 Q4' 21 Q4' 20 Q1'21 Q2'21 Q3'21
Slide 30: Operating Asset Management – Revenue Distribution and Customer Insights
Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution IT/ITES 12% Education 21% 19% 9% Industrials IFM* By By BFSI 7% Business Industrials 7% 12% Sector Segment Real Estate 60% Telecom 6% 12% Telecom Security services 13% 21% Healthcare & Hospitality Others IFM
Slide 31: Emerging Businesses
Emerging Businesses Key Operational Metrics (till date) Job Postings / Month (in New customers added Key FY 21 Updates ‘000) ▪ 440K Total Job Openings posted on Qjobs 194 30 2001 ▪ 450K Job Applications processed No. of brand tie-ups 77% Profitable Centres 124 1397 54% ▪ 345K Interviews have been fa
Slide 32: Annexures
Annexures © Quess Corp Limited 2021. All rights reserved | 31
Slide 33: Income Statement
Income Statement Particulars ( in ₹ cr ) Q4 FY21 Q4 FY20 Q3 FY21 YoY QoQ FY21 FY20 YoY Revenue from operations 3,005 2,995 2,808 0% 7% 10,837 10,991 (1%) Less: Employee benefit expense (2,563) (2,510) (2,400) 2% 7% (9,297) (9,063) 3% Cost of material (57) (60) (56) (5%) 1% (201) (267) (25%) Other ex
Slide 34: Balance Sheet
Balance Sheet Particulars ( in ₹ cr ) 31-Mar-21 31-Mar-20 Var % Non-current assets Fixed assets 431 514 (16%) Intangibles 1,104 978 13% Investments 4 72 (94%) Other non-current assets 591 863 (31%) Current assets Trade receivables 894 998 (10%) Unbilled revenue 905 881 3% Cash and cash equivalents 6
Slide 35: Segment Reporting
Segment Reporting Quarter ended Year ended Particulars ( in ₹ cr) Mar 2021 Dec 2020 Sept 2020 Jun 2020 Mar 2020 Mar 2021 Mar 2020 Workforce Management Platform Revenue 2,011 1,843 1,686 1,618 2,039 7,159 7,155 EBITDA 37 68 63 60 103 228 387 EBITDA % 1.85% 3.70% 3.72% 3.70% 5.10% 3.19% 5.41% Normaliz
Slide 36: Winning Together – In your win lies our win
Winning Together In your win lies our win © Quess Corp Limited 2021. All rights reserved | 35
Slide 37: 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