Slide 1: Cover letter to stock exchanges: Investors Presentation
7 auess WINNING TOGETHER August 11, 2022 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
Slide 2: Investor Presentation Q1'FY23
Investor Presentation Q1’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: Best ever quarter by headcount addition, PAT up 52% YoY
Best ever quarter by Headcount Addition, PAT up 52% YoY Leading domestic private sector employer, with ~470,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 4
Slide 6: Q1 FY23 – Highlights
Q1 FY23 – Highlights Q1 FY23 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Net Debt Revenue ₹ 3,979 cr. 33% ₹ 59 cr. ₹ 92 cr. / (cash) EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps 3.85% 106 bps Book value ₹ 166.4 7% % EBITDA per share PAT ₹ 68 cr. 52% EPS (dil.) ₹ 4.5 46% © Quess Corp Li
Slide 7: Q1 FY23 Business Highlights
Q1 FY23 Business Highlights General Staffing: Associate headcount crossed 300k Cross sell initiatives: Yielded 32 wins and ACV of over ₹ 160 cr Qjobs: Total users reached 5 million Great Place to Work: Quess is now amongst India’s Top 100 Best Companies to Work For - Ranked 98 by GPTW Corpor
Slide 8: Q1FY23 – Financial Highlights
Q1FY23 – Financial Highlights Revenue ₹ 3,979cr 33% YoY Revenue | % Growth EBITDA | % Growth Workforce 2,758 ₹ cr 94 ₹ cr EBITDA ₹ 153cr 4% YoY Management 33% YoY 29% YoY Global Technology 507 ₹ cr 83 ₹ cr EBITDA % 3.9 % Solutions 29% YoY 30% YoY Operating Asset 597 ₹ cr 30 ₹ cr PAT ₹ 68cr 52% YoY M
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 61,000 384,000 470,000 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 Management Global Technology Operating Asset Product Led Business Solutions Management General staffing across CLM solutions (Voice and Facilities management MonsterIndia.com – job Retail, BFSI, Telecom, Non-voice) delivered fr
Slide 12: Our focus is on Winning Together with 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 by FY25 for all organic business, brings in agility and speed in the way we work Continue Delivering 20% CAGR on OCF Measure digital revenues se
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 Business model drives e-waste reduction -
Slide 16: Key Corporate and Financial Updates
Key Corporate and Financial Updates © Quess Corp Limited 2021. All rights reserved | 15
Slide 17: Update on Q1 operating environment
Update on Q1 operating environment Positive hiring environment in certain segments… • Q1 saw cumulative GST collection of ₹ 4.53 lac cr, an increase of 12% QoQ • While Jun’22 Manufacturing PMI saw the weakest pace of growth since last September, Services PMI hit the highest mark since Apr’11 • The M
Slide 18: Q1FY23 Financial Updates
Q1FY23 Financial Updates Revenue: • Up 33% YoY driven by General Staffing (up 34%), QITS (up 33%), and Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue ConneQt (up 33%) YoY 33% YoY 4% • Up 5% QoQ, due to strong execution. 3,979 QoQ 5% QoQ 17% General Staffing (up 6%) Singapore IT 3,792
Slide 19: Platform-wise Updates
Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 18
Slide 20: Changes in Reporting Segments (1/2)
Changes in Reporting Segments (1/2) • New Segment ‘Product Led Businesses’ has been created. This segment will include erstwhile emerging businesses i.e. Monster.com, Blue collar Jobs and Qdigi. Previously these businesses were reported under Global Technology Solutions Segment • The Canadian Staffi
Slide 21: Changes in Reporting Segments (2/2)
Changes in Reporting Segments (2/2) Old Segments New Segments Workforce Global Technology Operating Asset Workforce Global Technology Operating Asset Product Led Management Solutions Management Management Solutions Management Business General Staffing CLM Voice Facilities General Staffing CLM Voice
Slide 22: 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) 350 31% 2,545 2,644 2,758 316 YoY 424 428 431 16% 2,073 2,214 267 295 304 YoY 33% YoY 373 379 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22
Slide 23: Workforce Management – Revenue Distribution and Customer Insights
Workforce Management – Revenue Distribution and Customer Insights 3% Revenue Distribution 7% 13% General Staffing < 2 Years 8% IT Staffing India Customer-wise Revenue 45% 2-5 Years Distribution Tenure Overseas Staffing (# Customers) 48% > 5 Years Others 77% Good customer loyalty & healthy new custom
Slide 24: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs Cr) Revenue / Employee (Rs ‘000) 507 18% 18% 17% 17% 16% 431 468 477 111 112 111 YoY 393 29% 8% 109 110 7% 7% 7% 7% YoY 27% 27% 26% 28% 27% Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'2
Slide 25: Global Technology Solutions – Revenue Distribution and Customer Insights
Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 11% 11% BFSI 5% 7% IT/ITES By 47% Retail By India Sector Geography 12% Telecom NA Industrials 19% Others 89% Revenue-base diversified across sectors India is the main focus Customer Insights (CLM and Non
Slide 26: 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) 22% 22 22 23 23 23 5% 578 577 597 28% 87 YoY 465 490 YoY 84 85 YoY 75 71 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
Slide 27: Operating Asset Management – Revenue Distribution and Customer Insights
Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 2% 9% Industrials 19% 6% BFSI IFM 33% 6% IT/ITES By By Security Services Education Business Sector 21% Segment 60% Others 14% Healthcare & Hospitality Telecom 14% 16% Real Estate Others IFM* is the largest b
Slide 28: 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 109% 33.9 57% 41% 117 29.2 26.6 77% 103% 101% 86% 93 95 94 YoY 24.1 YoY 61% YoY 56 16.9 # New Orders Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 3,007
Slide 29: Product Led Business – Blue Collar Jobs
Product Led Business – Blue Collar Jobs Key Operational Metrics New Users Signed Up (in Mn) External Customers ▪ Won first direct external customer (1.2k Users) 400% 432% 7,065 YoY YoY 1.5 1.4 5,067 ▪ 255K + Monthly Active Users & 100K + DAU 1.0 3,545 0.5 2,260 ▪ 30L Attendance Markings Monthly and
Slide 30: Annexures
Annexures © Quess Corp Limited 2021. All rights reserved | 29
Slide 31: Income Statement
Income Statement Particulars ( in ₹ cr) Q1 FY23 Q1 FY22 Q4 FY22 YoY QoQ Revenue from operations 3,979 2,987 3,792 33% 5% Less: Employee benefit expense (3,395) (2,599) (3,228) 31% 5% Cost of material (98) (47) (84) 106% 17% Other expenses (333) (194) (295) 72% 13% Total expenses (3,826) (2,840) (3,6
Slide 32: Balance Sheet
Balance Sheet Particulars ( in ₹ cr) 30-Jun-22 31-Mar-22 Var % Non-current assets Fixed assets 494 498 -1% Intangibles 1,186 1,174 1% Investments 3 10 -74% Other non-current assets 606 568 7% Current assets Trade receivables 1,399 1,270 10% Unbilled revenue 1,186 1,062 12% Cash and cash equivalents
Slide 33: Segment Reporting
Segment Reporting Quarter Ended Particulars ( in ₹ cr) Jun-22 Mar-22 Dec-21 Sep-21 Jun-21 Workforce Management Platform Revenue 2,758 2,644 2,545 2,214 2,073 Reported EBITDA 94 94 81 43 73 Reported EBITDA % 3.41% 3.56% 3.18% 1.94% 3.52% EBITDA from operations 76 EBITDA from operations % 3.43% Global
Slide 34: Segment Reporting: Old Segments
Segment Reporting: Old Segments Quarter Ended Particulars ( in ₹ cr) Jun-22 Mar-22 Dec-21 Sep-21 Jun-21 Workforce Management Platform Revenue 2,683 2,570 2,472 2,143 2,005 Reported EBITDA 90 89 76 39 70 Reported EBITDA % 3.35% 3.47% 3.09% 1.84% 3.47% EBITDA from operations 72 EBITDA from operations
Slide 35: 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 36: 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 37: Our customer proposition is unrivalled
Our customer proposition is unrivalled Scale Agility Technology ~470,000* associates and employees An entrepreneurial 14 year old startup Significant frontline productivity deployed over 600+ cities capabilities (e.g., WorQ, Qjobs, Widest repertoire of services, including International ope
Slide 38: Winning Together
Winning Together In your win lies our win © Quess Corp Limited 2021. All rights reserved | 37
Slide 39: 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