Quess Corp. Ltd. · NSE:QUESS

Quess — Q1 FY25 Earnings Presentation

41 slides from Quess's earnings presentation, Jul 29, 2024

  1. Slide 1: Stock exchange covering letter for investor presentation

    July 29, 2024 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 R

  2. Slide 2: Q1 FY25 Investor Presentation

    Q1 FY25 Investor Presentation 29th July 2024 1

  3. 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

  4. Slide 4: Key highlights of the quarter

    Leading domestic private sector employer with a headcount of 597k+ Quarterly revenue crosses ₹ 5,000 crore milestone Implementation of org structure to enable proposed three-way demerger In the last four quarters, reduced debt by ₹ 245+ crore and declared dividends of ₹ 148 crore (inclusive of final

  5. Slide 5: Contents

    Contents 1 Key Highlights 2 Platform-wise Updates 3 Financials 4 Company Overview ©2023 Quess Corp Limited. All rights reserved. 4

  6. Slide 6: Key Highlights

    01 Key Highlights 5

  7. Slide 7: Q1 FY25 – Financial Highlights

    Q1 FY25 – Financial Highlights Figures In ₹ Cr Revenue %YoY %QoQ EBITDA %YoY %QoQ v WFM 3,622 12% 4% WFM 89 6% c (3)% v GTS 610 8% 1% GTS 107 7% c (6)% OAM 733 6% 3% OAM 35 14% (9)% PLB1 39 6% 1% PLB1 (8) 68% (83)% 1) YoY and QoQ growth figures have been calculated by adjusting PLB historical revenu

  8. Slide 8: Q1 FY25 Financial Updates (Consolidated)

    Q1 FY25 Financial Updates (Consolidated) Revenue (In ₹ Cr) EBITDA (In ₹ Cr) & margin (%) 9% 19% 181 195 184 5,003 154 164 4,748 4,842 4,910 4,600 3.3% 3.5% 3.7% 4.0% 3.7% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 2% (6) % PAT (In ₹ Cr) & margin (%) EPS (In ₹) 132 % 116 % 112 6.9 98

  9. Slide 9: New Joinee workforce snapshot

    New Joinee workforce snapshot Sector wise additions QoQ Additions in leading States QoQ Operational metrics (QoQ) (Net Add of 30,229) 10,433 Gender UTTAR PRADESH 3,616 1,379 CRT 10,121 6,078 Male Female HARYANA 3,062 253 Ecom and Logistics 7,843 108 TAMILNADU 2,796 1,446 83% (79%) 17% (21%) Industri

  10. Slide 10: Platform-wise Updates

    02 Platform-wise Updates ©2023 Quess Corp Limited. All rights reserved. 9

  11. Slide 11: Workforce Management – Performance Snapshot

    Workforce Management – Performance Snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 12% 6% 3,622 90 91 89 87 3,476 83 3,430 3,315 3,221 2.4% 2.6% 2.6% 2.6% 2.6% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 4% (3)% Key developments • Strong sales growth wit

  12. Slide 12: Workforce Management – Operational Performance

    Workforce Management – Operational Performance Associate Headcount (in ‘000) Associate: Core FTE^(Gen Staff) 20% (15) % 483 469 444 452 435 427 430 405 404 398 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 7% (2) % F&F 29 31 34 32 36 Collect & Pay - Headcount SG&A / Revenue (IT Staff)

  13. Slide 13: Workforce Management – Segment wise Distribution

    Workforce Management – Segment wise Distribution Segment-wise distribution 1% 1% 1% 10% 1% 5% Revenue Headcount distribution distribution 84% 97% General Staffing IT Staffing India Overseas Staffing Others General Staffing IT Staffing India Overseas Staffing Others ©2023 Quess Corp Limited. All righ

  14. Slide 14: Workforce Management – Customer Insights

    Workforce Management – Customer Insights Customer Insights (Gen. Staffing) 2% BFSI 4%3% Retail 26% 10% 32% Industrials Customer Top 10 7% Sector Telecom Concentration 49% Next 40 Concentration FMCG (% Revenue) Others (% Revenue) 15% Others 25% Logistics 28% IT/ITES Customer Insights (QITS) 2% IT/ITE

  15. Slide 15: Workforce Management - Domestic IT Staffing

    Workforce Management - Domestic IT Staffing Revenue Contribution % (Types of org) Headcount Contribution % 23% 18% 20% 14% 11% ITeS 48% 45% 46% ITeS 17% Enterprise 13% 13% 11% Enterprise 60% 68% 69% GCC GCC 39% 42% 43% Q1FY23 Q1FY24 Q1FY25 Q1FY23 Q1FY24 Q1FY25 New on-board Contribution % Revenue Con

  16. Slide 16: Global Technology Solutions – Performance Snapshot

    Global Technology Solutions – Performance Snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 8% 7% 610 113 604 108 107 588 104 584 100 563 18.0% 17.8% 18.3% 18.8% 17.5% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 1% (6)% Key developments • Investment in lea

  17. Slide 17: Global Technology Solutions – Operational Performance

    Global Technology Solutions – Operational Performance Operating Metrics Revenue Distribution Revenue / Employee (In 000’s) 5% 8% 110 113 117 120 116 150 10% 11% 11% 11% 13% 100 14% 12% 11% 9% 9% 50 0 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 32% 31% 33% 33% 28% (3) % HRO Records Processed (Allsec: In ₹ lacs) 10

  18. Slide 18: Global Technology Solutions – Segment-wise Distribution

    Global Technology Solutions – Segment-wise Distribution Sector-wise Revenue Distribution (GTS) CLM and Non-voice BPO Customer Concentration (% Revenue) 12% 2% 15% 50% 38% 7% 50% 6% Top 10 Next 40 Others Sector Concentration (% Revenue) 20% 5% 5% BFSI 3% BFSI IT/ITES Telecom/Media Ecommerce 9% Indust

  19. Slide 19: Operating Asset Management – Performance Snapshot

    Operating Asset Management – Performance Snapshot Financial metrics Revenue (in ₹ Cr) EBITDA from operations (in ₹ Cr) 6% 14% 733 39 710 35 36 35 705 695 31 690 5.2% 5.4% 5.0% 5% 4.8% 4.5% 4% Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 3% (9)% Key developments • YoY EBITDA margin imp

  20. Slide 20: Operating Asset Management – Operational Performance

    Operating Asset Management – Operational Performance Associate Headcount (in ‘000) Revenue/Headcount/Month (₹ '000) 4% 2% 27 26 26 26 26 26 25 25 94 92 91 91 24 90 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 (1) % Associate to Core ratio (8) % 200 107 104 105 100 98 100 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 0 Q1'24 Q2'24

  21. Slide 21: Operating Asset Management – Sector-wise Distribution

    Operating Asset Management – Sector-wise Distribution By Headcount By Revenue 10% 6% 2% 9% 6% 7% 21% 60% 59% 19% IFMS Security Services Industrial Services Telecom Network Services Others IFMS Security Services Industrial Services Telecom Network Services Others ©2023 Quess Corp Limited. All rights

  22. Slide 22: Operating Asset Management – Customer Insights

    Operating Asset Management – Customer Insights Customer Insights (IFM + Security) 17% 12% 27% 13% 36% 11% Sector Customer Concentration 1% Concentration (% Revenue) 9% 22% 15% 38% IT/ITES Education Industrials BFSI Top 10 Next 40 Others Real Estate Telecom Healthcare & Hospitality Others Diversified

  23. Slide 23: Product Led Business – Performance snapshot

    Product Led Business – Performance snapshot Financial metrics Revenue* (In ₹ Cr) EBITDA from operations* (In ₹ Cr) 6% 39 38 -1 37 -5 36 -9 35 -19 -22 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 1% *Excluding non cash ESOP charges *Historical nos. for Revenue and EBITDA adjusted ex. Q

  24. Slide 24: Product Led Business – foundit Snapshot

    Product Led Business – foundit Snapshot New Search Profiles (‘000) Consumption (Mn) 94% 15% 2,591 88 1,404 77 74 67 79 1,333 1,367 549 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 Q1'24 Q2'24 Q3'24 Q4'24 Q1'25 85% 12% Profile Updates (Mn) Job Posting (‘000s) 252% 76% 624 13.4 355 365 439 404 5.5 7.2 3.8 4.3 Q1'24

  25. Slide 25: Financials

    03 Financials ©2023 Quess Corp Limited. All rights reserved. 24

  26. Slide 26: Income Statement

    Income Statement Particulars ( in ₹ Cr) Q1 FY25 Q1 FY24 YoY Q4 FY24 QoQ Total Revenue 5,003 4,600 9% 4,910 2% Reported EBITDA 184 154 19% 195 (6)% Reported EBITDA % 3.7% 3.3% 33 bps 4.0% (30) bps Depreciation & amortisation 69 69 1% 73 (6)% Interest 24 27 (14)% 27 (11)% Other Income 10 4 149% 5 101%

  27. Slide 27: Segment Reporting

    Segment Reporting Quarter Ended Particulars ( In ₹ Cr) Jun-23 Sept-23 Dec-23 Mar-24 Jun-24 Workforce Management Revenue 3,221 3,315 3,430 3,476 3,622 EBITDA 83 87 90 91 89 EBITDA % 2.6% 2.6% 2.6% 2.6% 2.4% Global Technology Services Revenue 563 584 588 604 610 EBITDA 100 104 108 113 107 EBITDA % 17.

  28. Slide 28: Company Overview

    04 ) Company Overview 27

  29. Slide 29: India's largest business services platform, driving productivity for customers

    India’s largest business services platform, driving productivity for customers In-store & Industrial Operations Field Sales* Collections* & Maintenance Front End Processes Marketing Omni channel CLM & Installation & After Services* Backoffice Services Sales Services* Compliance Tech Manned & Electro

  30. Slide 30: We lead with technology and innovation

    We lead with technology and innovation Digital Hire-to-Retire Technology-led Frontline Productivity Sourcing Digital workflow management Digital sourcing via Qjobs and foundit WorQ WorkTech platform to remotely assign & monitor tasks Recruiting Digitally skilling End-to-end ATS ReQruit platform for

  31. Slide 31: Our Journey over the last 17 years

    Our Journey over the last 17 years Platformization Expansion 2019-2024 2014-2018 Initial growth Tech–enabled platforms Business Services • Workforce Management 2007-2013 • Operating Asset Mgmt. • Staffing • Skilling • Global Tech Solutions • Recruitment • FMS • Product-Led Businesses HR Services • S

  32. Slide 32: Our operations are spread across synergistic platforms

    Our operations are spread across synergistic platforms Workforce Management Operating Asset Management General Staffing Facilities Professional Staffing Security Industrials Overseas Staffing Telecom Global Technology Solutions Product Led Business CLM Voice White Collar Jobs Non voice BPO Blue Coll

  33. Slide 33: An overview (I/II)

    An overview (I/II) Workforce Global Technology Operating Asset Product-Led Management (WFM) Solutions (GTS) Management (OAM) Businesses (PLB) General Staffing BPM FMS Business portfolio IT Staffing HR Outsourcing Industrial Asset Mgmt. Talent Platform International Staffing InsurTech Telco Asset Mgm

  34. Slide 34: An overview (II/II)

    An overview (II/II) Workforce Management Global Technology Operating Asset Product-Led (WFM) Solutions (GTS) Management (OAM) Businesses (PLB) #1 staffing player in India One of the top BPM players in #1 operating asset mgmt. co. by #2 job board platform in India domestic market range of services Am

  35. Slide 35: Quess Corp 3.0

    Quess Corp 3.0 Simplified corporate structure Enhanced managerial focus Uniquely defined capital allocation strategy Flexibility to pursue independent strategies Clarity of investment thesis Drive strong and sustainable long-term value creation ©2023 Quess Corp Limited. All rights reserved. 34

  36. Slide 36: Quess Corp Demerger

    Quess Corp Demerger Quess Corp Limited Digitide Solutions Limited Bluspring Enterprises Limited Conneqt – General Staffing Professional Staffing Integrated Facility Industrial India CLM and India India Management Digital Consulting Services Quess Singapore IT Allsec – Terrier – APAC IT Staffing 73%

  37. Slide 37: Mirror Shareholding

    Mirror Shareholding Current Pro-forma for transaction Shareholding Pattern 56.6 43.4 56.6 43.4 56.6 43.4 56.6 43.4 Promoters Public Resulting Co 1: Resulting Co 2: RemainCo: Quess Corp Quess Corp Digitide Bluspring Entity Name BPM and Customer FMS, Industrial Services, and Workforce Management Exper

  38. Slide 38: Value Creation

    Value Creation Leverage emerging Become the largest $1Bn+ opportunities in building a staffing company revenue BPM and new India globally customer experience company Scale foundit to gain market share ©2023 Quess Corp Limited. All rights reserved.

  39. Slide 39: Statutory Milestones – Demerger expected effective within 13-15 months

    Statutory Milestones – Demerger is expected to be effective within 13-15 months Completed In-Process Not initiated Q1’FY26 Q4’FY24 Q2’FY25 Q2’FY25 Q4’FY25 Application with Stock Filing of Scheme of Filing of NCLT Convening of NCLT Final hearing of petition of Exchanges, Corporate Arrangement applica

  40. Slide 40: Awards and Recognitions

    Awards and Recognitions Ranked 46 in SIA’s top 100 largest Certified as a Great Place to Ranked 32 best place to work Work in 2024 for the fifth for in India, 2024 global staffing firms in 2023 consecutive year India's 40 Best workplace in Health Accredited for Inclusive practices by Recognized as o

  41. Slide 41: 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

Quess — Q1 FY25 Earnings Presentation on 6ix