Slide 1: Cover letter to stock exchanges
November 09, 2022 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 Q2'FY23
Investor Presentation Q2’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: Headcount reaches 500,000 milestone; Simpliance divestment
Headcount reaches 500,000 milestone Corporate structure simplification with divestment of Simpliance Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 4
Slide 6: Q2 FY23 – Highlights
Q2 FY23 – Highlights Q2 FY23 YoY Change Q2 FY23 YoY Change Headcount 504k 26% OCF ₹ 68 cr. 46% 72% of Op. EBITDA Net Debt Revenue ₹ 4,273 cr. 32% ₹ (57) cr. ₹ 126 cr. / (cash) EBITDA ₹ 135 cr. 20% RoE 6% 91bps 3.16% 32 bps Book value ₹ 171 8.5% % EBITDA per share PAT ₹ 40 cr. 4% EPS (dil.) ₹ 2.8 13%
Slide 7: Q2FY23 – Financial Highlights – YoY
Q2FY23 – Financial Highlights – YoY Revenue ₹ 4,273cr 32% Revenue | % Growth EBITDA | % Growth 2,943 ₹ cr 79 ₹ cr EBITDA ₹ 135cr 20% WFM 33% 82% 529 ₹ cr 85 ₹ cr GTS EBITDA % 3.2 % 23% 9% 651 ₹ cr 28 ₹ cr OAM PAT ₹ 40cr 4% 33% 65% 150 ₹ cr -24 ₹ cr 72% of PLB OCF ₹ 68cr Op EBITDA 62% - Note: All num
Slide 8: Q2 FY23 Business Highlights
Q2 FY23 Business Highlights Headcount: Total Associate headcount crossed 500k OCF to Operating EBITDA: 72% conversion Monster: New user acquisition at highest ever with 1.8 million new registrations Capital Allocation: Announced the interim dividend of ₹ 8 per share for the Financial Year 2022
Slide 9: Company Overview
Company Overview © Quess Corp Limited 2021. All rights reserved | 8
Slide 10: 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 61,000 384,000 504,000 Staffing Staffing Security Services Services Skilling Skilling Industrials WFM OAM Recruitment Recruitment BPO/CLM + HRO Facilit
Slide 11: 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 12: 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 13: 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 14: 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 forces, experiencing a tectonic shift in composition and focus Formalisation
Slide 15: 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 16: Key Corporate and Financial Updates
Key Corporate and Financial Updates © Quess Corp Limited 2021. All rights reserved | 15
Slide 17: Update on Q2 operating environment
Update on Q2 operating environment Indian services activity grows at the slowest pace since March • The Sep’22 Services PMI saw the Indian services sector end Q2FY23 on a weaker footing. The Services PMI stood at 54.3, falling from 57.2 in August. New business inflows and output rose at the slowest
Slide 18: Q2FY23 Financial Updates
Q2FY23 Financial Updates Revenue: • Up 32% YoY driven by General Staffing Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue (up 36%), Comtel (up 48%) and YoY 32% YoY 20% ConneQt (up 24%) 4,273 QoQ 7% QoQ 12% • Up 7% QoQ, due to steady execution 200 5.0% 5.6% 6.2% 3,979 153 5.5% by Gener
Slide 19: Platform-wise Updates
Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 18
Slide 20: 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) 33% 28% YoY 424 428 431 430 13% 2,545 2,644 2,758 2,943 YoY 350 376 YoY 2,214 295 304 316 379 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22
Slide 21: Workforce Management – Revenue Distribution and Customer Insights
Workforce Management – Revenue Distribution and Customer Insights 2% Revenue Distribution 7% 12% General Staffing < 2 Years 7% IT Staffing India Customer-wise Revenue Tenure 2-5 Years Distribution 52% Overseas Staffing 41% (# Customers) > 5 Years Others 78% Staffing constitutes 97% of the revenue Go
Slide 22: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs Cr) Revenue / Employee (Rs ‘000) 17% 17% 16% 14% 18% 5% 468 477 507 529 109 112 110 111 104 431 7% 7% 7% 8% 12% YoY 23% YoY 27% 26% 28% 27% 27% Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22
Slide 23: Global Technology Solutions – Revenue Distribution and Customer Insights
Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 13% BFSI 15% 4% IT/ITES 6% By 46% Retail By India 7% Sector Geography Telecom NA Industrials 24% 85% Others Revenue-base diversified across sectors India is the main focus Customer Insights (CLM and Non-
Slide 24: 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) 651 19% 22 23 23 23 24 12% 578 577 597 33% 87 90 YoY 490 YoY 84 85 YoY 75 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
Slide 25: Operating Asset Management – Revenue Distribution and Customer Insights
Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 2% 8% Industrials 19% 7% BFSI IFM 32% 5% IT/ITES By By Security Services Education Business Sector 21% Segment 60% Others 14% Healthcare & Hospitality Telecom 15% 17% Real Estate Others IFM* is the largest b
Slide 26: Product Led Business – Performance snapshot
Product Led Business – Performance snapshot Product Led Business Monster.com Revenue (Rs Cr) Sales (Rs Cr) Top 1k Order Renewal Rate 62% 33.9 33.1 37% 19% 150 29.2 26.6 77% 103% 101% 86% 92% 117 YoY 24.1 YoY YoY 93 95 94 # New Orders Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 3,007
Slide 27: Product Led Business – Blue Collar Jobs
Product Led Business – Blue Collar Jobs Key Operational Metrics New Users Signed Up (in Mn) External Customers ▪ New Product Launched – Grow (L&D Platform) 47% 252% YoY 7,065 7,965 YoY ▪ 275K + Monthly Active Users & 100K + DAU 1.5 1.4 5,067 1.0 3,545 ▪ 50K+ Learners in Qpedia 0.5 2,260 0.3 ▪ 200k+
Slide 28: Annexures
Annexures © Quess Corp Limited 2021. All rights reserved | 27
Slide 29: Income Statement
Income Statement Particulars ( in ₹ cr) Q2 FY23 Q2 FY22 Q1 FY23 YoY QoQ Revenue from operations 4,273 3,228 3,979 32% 7% Less: Employee benefit expense (3,658) (2,758) (3,395) 33% 8% Cost of material (129) (70) (98) 84% 33% Other expenses (351) (287) (333) 22% 5% Total expenses (4,138) (3,116) (3,82
Slide 30: Balance Sheet
Balance Sheet Particulars ( in ₹ cr) 30-Sep-22 31-Mar-22 Var % Non-current assets Fixed assets 579 498 16% Intangibles 1,176 1,174 0% Investments 3 10 -75% Other non-current assets 634 568 12% Current assets Trade receivables 1,459 1,270 15% Unbilled revenue 1,247 1,062 17% Cash and cash equivalents
Slide 31: Segment Reporting
Segment Reporting Quarter Ended Particulars ( in ₹ cr) Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 Workforce Management Platform Revenue 2,943 2,758 2,644 2,545 2,214 Reported EBITDA 79 94 94 81 43 Reported EBITDA % 2.69% 3.41% 3.56% 3.18% 1.94% Global Technology Services Platform Revenue 529 507 477 468 431
Slide 32: Segment Reporting: Old Segments
Segment Reporting: Old Segments Quarter Ended Particulars ( in ₹ cr) Sep-22 Jun-22 Mar-22 Dec-21 Sep-21 Workforce Management Platform Revenue 2,865 2,683 2,570 2,472 2,143 Reported EBITDA 75 90 89 76 39 Reported EBITDA % 2.60% 3.35% 3.47% 3.09% 1.84% Global Technology Services Platform* Revenue 757
Slide 33: 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 34: 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 35: Our customer proposition is unrivalled
Our customer proposition is unrivalled Scale Agility Technology ~504,000* 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 36: Winning Together
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