Quess Corp. Ltd. · NSE:QUESS
Quess — Q2 FY21 Earnings Presentation
26 slides from Quess's earnings presentation, Oct 30, 2020
Slide 1: Investor Presentation cover letter to exchanges
a uess WINNING TOGETHER October 30, 2020 The General Manager The Manager Department of Corporate Services, Department of Corporate Services, BSE Limited, National Stock Exchange of India Limited 1st Floor, New Trading Ring , Exchange Plaza, Sandra- Kundra Complex, Rotunda Building, Phiroze Jeejeebho
Slide 2: Winning Together Investor Presentation Q2FY21
Winning Together Investor Presentation Q2FY21 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 Company Overview Key Highlights Financial Performance (Q2 and H1FY21) Platform-wise Highlights Emerging Businesses Q2FY20 Earnings Presentation 33
Slide 5: Company Overview
Company Overview Q2FY20 Earnings Presentation 44
Slide 6: India's Largest Business Services Platform
India’s Largest Business Services Platform • India’s largest private sector employer since • Top 3 Domestic BPO 2020 Player in India • India’s #1 Gen. Staffing • Leading vocational Canada player training player: 140,000 USA Hong Kong students trained and • India’s #1 IT Staffing player Vietnam Phili
Slide 7: Quess' Journey: Key Milestones
Quess’ Journey: Key Milestones ► Record-breaking IPO : Oversubscribed by ► Headcount of 384,132 144x ► Acquired: ► Acquired: • Allsec : Strengthening BPM segment Commenced as a Recruitment & Investment by Fairfax • Manipal Integrated Services : Specialty FM ► Investment by Amazon Staffing services p
Slide 8: Quess Service Platforms
Quess Service Platforms Soft & Hard FM Services Integrated Security Solutions General Staffing Industrial O&M Operating Asset Management Workforce Telecom Network O&M Management IT Staffing BPM and CLM Global Technology Solutions Payroll Processing & HR Compliance Skill Development Emerging Business
Slide 9: Key Highlights
Key Highlights Q2FY20 Earnings Presentation 88
Slide 10: Highlights
Highlights Financial Corporate Platform ▪ Headcount: Although HC down 3% across the quarter, ▪ Significant improvements in business operations: ▪ Workforce Management: September saw an increase vs. previous month o Indirect costs in Q2 reduced by 24% from Q4’20 o WFM associate headcount reduced by 3
Slide 11: Financial Performance (Q2 & H1FY21)
Financial Performance (Q2 & H1FY21) Q2FY20 Earnings Presentation 10 10
Slide 12: Q2FY21 Financial Performance
Q2FY21 Financial Performance Headcount & Revenue: Headcount (‘000s)# Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) 200 6% • HC was down 3% QoQ. However, September 377 162 YoY 1% 6% YoY 14% saw an increase vs. the previous month QoQ 160 9% 140 QoQ 8% 334 130 6% • Revenue up 9% QoQ driven by Gene
Slide 13: H1FY21 Financial Performance
H1FY21 Financial Performance Headcount & Revenue: Headcount (‘000s)# Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%age) • Headcount down 14% YoY, largely in WFM (42k) and IFM (10k). However, September 377 YoY 14% 400 YoY 12.0% 13% saw a higher headcount than August 5,047 5,025 360 310 • Revenue flat
Slide 14: Platform-wise Updates
Platform-wise Updates Q2FY20 Earnings Presentation 13 13
Slide 15: Workforce Management – Performance Snapshot
Workforce Management – Performance Snapshot Financial Metrics Operating Metrics Associate Headcount ('000) Core:Associate (Gen Staffing; 1:X) Revenue (in ₹ cr) 3% 333 333 330 3% 1,959 2039 4% 255 260 255 1669 1,686 QoQ 317 QoQ 1,618 QoQ 224 216 308 Q2' 20 Q3' 20 Q4' 20 Q1'21 Q2'21 Q2' 20 Q3' 20 Q4'
Slide 16: Workforce Management – Revenue Distribution and Client Insights
Workforce Management – Revenue Distribution and Client Insights Revenue Distribution 1% 0% 5% 6% 11% Gen. Staffing 4% BFSI 16% 5% 26% Retail India IT Staffing Telecom 11% By By By SEA Industrials Business Skill Development Sector Geography Segment FMCG ME 11% Others IT/ITES 21% 79% Logistics 16% Oth
Slide 17: Operating Asset Management – Performance Snapshot
Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Rev. Realization/Headcount/Month - IFM ('000) Associate Headcount ('000s) Revenue (in ₹ cr) 23 23 22 16% 83 19 20 432 448 428 427 78 80 3% 368 QoQ 70 68 2% QoQ QoQ Q2' 20 Q3' 20 Q4' 20 Q1'21 Q2'21 Q2' 20 Q3' 20 Q4'
Slide 18: Operating Asset Management – Revenue Distribution and Client Insights
Operating Asset Management – Revenue Distribution and Client Insights Revenue Distribution 7% 22% 7% 23% IT/ITES IFM* Education 9% By Industrials Industrials Business By 5% BFSI 7% Segment Telecom Sector Real Estate 60% 14% Telecom 11% Security 13% Healthcare & Hospitality Services 22% Others IFM* i
Slide 19: Tech Services – Performance Snapshot
Tech Services – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Revenue/FTE (Conneqt ‘000s) 551 544 528 502 464 464 454 425 19% QoQ 33 34 35 377423 13% QoQ 30 32 QoQ 6% Q2' 20 Q3' 20 Q4' 20 Q1' 21 Q2' 21 Monster & DigiCare are the two Emerging businesses in the Tech Q2' 20
Slide 20: Tech Services – Revenue Distribution and Client Insights
Tech Services – Revenue Distribution and Client Insights Diversified Revenue Base 4% 13% 20% 28% CLM BFSI By 43% IT Services Retail 11% By 46% By India Business BreakFix 7% IT/ITES Sector Geography N.America Segment HRO Telecom 11% Internet Others 72% 28% 16% CLM & IT Services constitute majority bu
Slide 21: Emerging Businesses
Emerging Businesses Growth across Consistent operating Reduction metrics, signalling in Operating losses & Business on upswing and continued strong recovery Improvement in from COVID headwinds Key Operating Metrics client additions • Recorded positive EBDITA for 2nd consecutive quarter 639 Service n
Slide 22: Annexures
Annexures Q2FY20 Earnings Presentation 21 21
Slide 23: Income Statement
Income Statement (in ₹ cr) Quarter ended Half year ended Particulars Q2 FY21 Q2 FY20 Q1 FY21 YoY QoQ H1 FY21 H1 FY20 YoY Revenue from operations 2,615 2,651 2,409 -1% 9% 5,025 5,047 0% Less: Employee benefit expense (2,250) (2,170) (2,084) 4% 8% (4,333) (4,105) 6% Cost of material (54) (70) (33) -23
Slide 24: Balance Sheet
Balance Sheet (in ₹ cr) Particulars 30-Sep-20 31-Mar-20 Var % Non-current assets Fixed assets 436 514 -15% Intangibles 1,118 978 14% Investments 2 72 -97% Other non-current assets 669 863 -22% Current assets Trade receivables 898 998 -10% Unbilled revenue 963 881 9% Cash and cash equivalents 578 792
Slide 25: Segment Reporting
Segment Reporting (in ₹ cr) Quarter ended Half year ended Particulars Sept 2020 Jun 2020 Mar 2020 Dec 2019 Sept 2019 Sept 2020 Sept 2019 Workforce Management Platform Revenue 1,686 1,618 2,039 1,959 1,669 3,304 3,157 EBITDA 63 60 103 103 91 123 181 EBITDA % 3.72% 3.70% 5.10% 5.30% 5.50% 3.71% 5.73%
Slide 26: Winning Together
Winning Together In your win lies our win 25 25