Slide 1: Cover letter to stock exchanges: Investors Presentation
May 17, 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 to Re
Slide 2: Investor Presentation Q4'FY23 & FY23
Investor Presentation Q4’FY23 & FY23 © Quess Corp Limited 2023. 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 2023. All rights reserved | 3
Slide 5: Highlights
Topline growth of 25% YoY, with Annual OCF / EBITDA of 71% Leading domestic private sector employer with ~511,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2023. All rights reserved | 4
Slide 6: FY23 Business Highlights
FY23 Business Highlights Business Updates: Headcount net-addition of 74k (17% YoY growth) in FY23; Second consecutive year of 70k+ HC addition Steady 25% revenue growth despite challenging market conditions EBITDA at ₹ 586 cr. down 6% YoY; EBITDA ex-PLB at ₹ 681 cr. up 7% YoY Highest ever EB
Slide 7: FY23 – Highlights
FY23 – Highlights FY23 YoY Change FY23 YoY Change Headcount 511k 17% PAT ₹ 223 cr. 11% Revenue ₹ 17,158 cr. 25% OCF ₹ 294 cr. 31% 71% of Op-EBITDA EBITDA Net Debt ₹ 586 cr. 6% ₹ (82) cr. ₹ 66 cr. / (cash) EBITDA ₹ 681 cr. 7% RoE 8.4% 160 bps Ex-PLB 3.41% 114 bps Book value ₹ 184 12% % EBITDA per sha
Slide 8: Q4FY23 – Highlights
Q4FY23 – Highlights Q4 FY23 YoY Change Q4 FY23 YoY Change Headcount 511k 17% PAT ₹ 30 cr. 61% Revenue ₹ 4,440 cr. 17% ₹ 114 cr. OCF 117% of Op-EBITDA EBITDA ₹ 152 cr. 18% Net Debt ₹ (82) cr. ₹ 66 cr. / (cash) EBITDA ₹ 172 cr. 11% RoE 4.5% 772 bps Ex-PLB % EBITDA 3.42% 146 bps Book value ₹ 184 12% pe
Slide 9: FY23 – Financial Highlights
FY23 – Financial Highlights Revenue EBITDA EBITDA % PAT OCF Consolidated ₹ 17,158cr 25% ₹ 586cr 6% 3.41 % 114 bps ₹ 223cr 11% ₹ 294cr 31% Excluding PLB ₹ 16,620cr 24% ₹ 681cr 7% 4.10 % 66 bps ₹ 334cr 28% ₹ 351cr 16% 24% Revenue | % Change EBITDA | % Change WFM ₹ 11,831 cr | 25% ₹ 345 cr | 18% GTS ₹
Slide 10: Q4'FY23 – Financial Highlights – YoY
Q4'FY23 – Financial Highlights – YoY Consolidated Excluding PLB Revenue EBITDA Revenue ₹ 4,440cr 17% ₹ 4,317cr 17% % Change % Change ₹ 3,062 cr ₹ 86 cr WFM 16% -9% EBITDA ₹ 152cr 18% ₹ 172cr 12% ₹ 571 cr ₹ 95 cr GTS 146 133 20% 9% EBITDA % 3.42 % bps 3.99% bps ₹ 684 cr ₹ 30 cr OAM 19% 17% PAT ₹ 30cr
Slide 11: Q4'FY23 – Financial Highlights – QoQ
Q4'FY23 – Financial Highlights – QoQ Consolidated Excluding PLB Revenue EBITDA Revenue ₹ 4,440cr 1% ₹ 4,317cr % Change % Change ₹ 3,062 cr ₹ 86 cr WFM 0% 0% EBITDA ₹ 152cr 4% ₹ 172cr ₹ 571 cr ₹ 95 cr GTS 16 2% 6% EBITDA % 3.42 % bps 3.99% ₹ 684 cr ₹ 30 cr OAM -1% -4% PAT ₹ 30cr 65% ₹ 56cr 51% ₹ 123
Slide 12: Company Overview
Company Overview © Quess Corp Limited 2023. All rights reserved | 11
Slide 13: 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 61,000 384,000 511,000 Staffing Staffing Security Services Services Skilling Skilling Industrials WFM OAM Recruitment Recruitment BPO/CLM + HRO Facilit
Slide 14: 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 15: 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 Achieve and sustain 20% RoE for all organic business, brings in agility and speed in the way we work Deliver 20% CAGR on OCF Measure digital revenues separately Aspirational E
Slide 16: 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 17: We enjoy massive macroeconomic tailwind
We enjoy massive macroeconomic tailwind India to remain fastest growing major economy in 2023@ Growing labour ~ 563$ million labour force market One of the world’s largest labour force, experiencing a tectonic shift in composition and focus Formalisation^ to increase from 20.8% currently to
Slide 18: ESG Progress – Q4 FY23
ESG Progress – Q4 FY23 1. The People Company 3. Environmentally Conscious Diverse workforce: 28 % of our core employees are Environmentally positive: women ~1.5 million devices repaired /refurbished by QDigi Promoting inclusivity: Over 6,000 PWD employees Responsible waste management: Nurturing work
Slide 19: Key Corporate and Financial Updates
Key Corporate and Financial Updates © Quess Corp Limited 2023. All rights reserved | 18
Slide 20: Update on Q4 operating environment
Update on Q4 operating environment Hiring environment continues to be challenging • According to foundit Insight Tracker, job posting activity remained flattish in Q4’23, as several sectors slowed down their hiring processes • Key sectors such as IT and BFSI saw decline of 3-5% in job posting activi
Slide 21: FY23 Financial Updates
FY23 Financial Updates Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue Revenue: YoY 25% consolidated YoY 6% consolidated • Up 25% YoY driven by WFM (up 25%), YoY 24% ex PLB 700 YoY 7% ex PLB 681 OAM (up 24%) and GTS (up 23%) 17,158 600 16,620 500 623 635 5.4% 5.7% 400 4.8% 4.1% 4.9% 4
Slide 22: Q4'FY23 Financial Updates (Consolidated)
Q4’FY23 Financial Updates (Consolidated) Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue • Up 17% YoY driven by WFM (up 16%), OAM (up 19%) and GTS (up 20%) YoY 17% YoY 18% 4,466 4,440 QoQ 1% 185 QoQ 4% 200 4.0% • Down 1% QoQ, due to flat growth 152 5.3% 5.7% 5.4% 3,792 160 14
Slide 23: Q4'FY23 Financial Updates (Ex-PLB)
Q4’FY23 Financial Updates (Ex-PLB) Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue • Up 17% YoY driven by WFM (up 16%), YoY 17% YoY 12% OAM (up 19%) and GTS (up 20%) 4,317 197 4,318 200 172 172 6.0% • Flat QoQ, due to tepid growth across 3,698 160 5.3% 5.0% 4.4% 4.3% 4.2% pla
Slide 24: Platform-wise Updates
Platform-wise Updates © Quess Corp Limited 2023. All rights reserved | 23
Slide 25: 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 3,062 22% 512 2,644 2,758 16% 20% YoY YoY YoY 379 387 459 350 376 316 428 431 430 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'2
Slide 26: Workforce Management – Revenue Distribution and Customer Insights
Workforce Management – Revenue Distribution and Customer Insights 1% Revenue Distribution 9% 13% General Staffing < 2 Years 7% IT Staffing India Customer-wise Revenue Distribution Tenure 2-5 Years Overseas Staffing 35% (# Customers) 56% Others > 5 Years 79% Staffing constitutes 99% of the revenue Go
Slide 27: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs Cr) Revenue / Employee (Rs ‘000) 561 571 20% 17% 16% 14% 16% 14% 110 111 108 109 1% 477 507 529 YoY 104 YoY 7% 8% 12% 11% 11% 27% 27% 27% 31% 28% Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'2
Slide 28: Global Technology Solutions – Revenue Distribution and Customer Insights
Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 4% 4% BFSI 10% 6% IT/ITES 9% By By India Retail Sector 51% Geography NA Telecom Industrials 25% Others 90% Revenue-base diversified across sectors India is the main focus Customer Insights (CLM and Non-v
Slide 29: 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) 689 684 8% 10% 651 19% YoY 23 23 24 25 25 577 597 YoY 92 92 YoY 87 90 85 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23
Slide 30: Operating Asset Management – Revenue Distribution and Customer Insights
Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution Industrials 10% 20% 4% Education IFM 6% 31% IT/ITES By By Security Services 8% BFSI Business Sector Segment 57% Telecom 22% Others 13% Healthcare & Hospitality 15% Real Estate 15% Others IFM* is the largest
Slide 31: 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 31% 40.9 46.2 36% 26% 150 147 33.9 33.1 101% 86% 92% 76% 75% 117 123 YoY 26.6 YoY YoY 94 # New Orders Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 2,486 3,0
Slide 32: Annexures
Annexures © Quess Corp Limited 2023. All rights reserved | 31
Slide 33: Income Statement
Income Statement Particulars ( in ₹ cr) Q4 FY23 Q4 FY22 Q3 FY23 YoY QoQ FY'23 FY'22 YoY Revenue from operations 4,440 3,792 4,466 17% -1% 17,158 13,692 25% Less: Employee benefit expense (3,797) (3,228) (3,809) 18% 0% (14,660) (11,687) 25% Cost of material (113) (84) (140) 35% -19% (479) (279) 72% O
Slide 34: Balance Sheet
Balance Sheet Particulars ( in ₹ cr) 31-Mar-23 31-Mar-22 Var % Non-current assets Fixed assets 646 498 30% Intangibles 1,168 1,174 0% Investments 3 10 -74% Other non-current assets 792 568 39% Current assets Trade receivables 1,485 1,270 17% Unbilled revenue 1,203 1,062 13% Cash and cash equivalents
Slide 35: Segment Reporting
Segment Reporting Quarter Ended Particulars ( in ₹ cr) Mar-23 Dec-22 Sep-22 Jun-22 Mar-22 Dec-21 Workforce Management Revenue 3,062 3,068 2,943 2,758 2,644 2,545 Reported EBITDA 86 86 79 94 94 81 Reported EBITDA % 2.81% 2.80% 2.69% 3.41% 3.56% 3.18% Global Technology Services Revenue 571 561 529 507
Slide 36: 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 37: 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, Digital WorQ WorkTech platform to remotely with digital pre-screening and assessment workflow assign & monitor tasks, driving frontline via Q
Slide 38: Our customer proposition is unrivalled
Our customer proposition is unrivalled Scale Agility Technology ~511,000* 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 39: Winning Together
Winning Together © Quess Corp Limited 2023. All rights reserved | 38
Slide 40: 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