Quess Corp. Ltd. · NSE:QUESS
Quess — Q1 FY24 Earnings Presentation
45 slides from Quess's earnings presentation, Aug 2, 2023
Slide 1: Exchange filing cover letter
August 02, 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
Slide 2: Investor Presentation Q1'FY24
Investor Presentation Q1’FY24 2nd August 2023
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: Revenue growth of 16% YoY with headcount addition of 55k YoY
Revenue growth of 16% YoY with headcount addition of 55k YoY GTS platform crosses quarterly EBITDA of ₹ 100 cr. for the first time Leading domestic private sector employer with ~525k FTE Q2FY20 Earnings Presentation
Slide 5: Contents
Contents 1 Key Corporate Highlights 2 Platform-wise Updates 3 Company Overview 4 ESG Updates 5 Financials ©2023 Quess Corp Limited. All rights reserved. 4
Slide 6: Key Corporate Highlights
01 Key Corporate Highlights 5
Slide 7: Q1'FY24 – Financial Highlights
Q1’FY24 – Financial Highlights Figures in ₹ Crores Revenue %YoY QoQ% EBITDA %YoY QoQ% WFM 3,221 17% 5% WFM 2 83 -12% -3% GTS 1 563 11% -1% GTS 100 21% 5% OAM 690 16% 1% OAM 31 1% 3% PLB 126 8% 3% PLB (26) -7% -27% Consolidated Revenue 4,600 16% 4% EBITDA 154 0% 1% PAT 3 48 -29% 60% EPS in ₹ 3.21 28%
Slide 8: Q1'FY24 Financial Updates (Consolidated)
Q1’FY24 Financial Updates (Consolidated) Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) 16% YoY 0% 4,600 153 145 152 154 4,466 4,440 135 4,273 3,979 3.9% 3.2% 3.3% 3.4% 3.3% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 4% QoQ 1% PAT (in ₹ cr) & margin (%) EPS (in ₹) -29% -28% 5.9 86
Slide 9: Platform wise Updates
02 Platform wise Updates 8 © Quess Corp Limited 2021. All rights reserved | 8
Slide 10: Workforce Management – Performance Snapshot
Workforce Management – Performance Snapshot Financial metrics Revenue (in ₹ cr) EBITDA from operations (₹ Cr) 17% -12% 3221 3068 94 3062 2943 86 86 2758 83 79 3.4% 2.7% 2.8% 2.8% 2.6% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 5% -3% Key developments • WFM Revenue up by 17% YoY, Con
Slide 11: Workforce Management – Operational Performance
Workforce Management – Operational Performance Associate Headcount# (in ‘000) Associate : Core FTE^ (Gen Staff) 15% 9% 387 404 376 379 431 430 459 512 469 350 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 4% -8% F&F 19 20 25 27 29 Collect & Pay - Headcount SG&A / Revenue (IT Staff) 1%
Slide 12: Workforce Management – Revenue Distribution
Workforce Management – Revenue Distribution Revenue Distribution 1% 9% 12% 6% Customer-wise Business-wise Tenure (% Revenue) 35% (# Customers) 56% 81% General Staffing IT Staffing India Overseas Staffing Others < 2 Years 2-5 Years > 5 Years ©2023 Quess Corp Limited. All rights reserved. 11
Slide 13: Workforce Management – Customer Insights
Workforce Management – Customer Insights Customer Insights (Gen. Staffing) BFSI 2% 8% Retail 23% 3% 8% 33% Telecom Customer Top 10 Sector Industrials Concentration Next 40 Concentration 53% (% Revenue) 12% (% Revenue) FMCG Others 25% Logistics 12% IT/ITES 22% Others Customer Insights (QITS) IT/ITES
Slide 14: Global Technology Solutions – Performance Snapshot
Global Technology Solutions – Performance Snapshot Financial metrics Operating Metrics Revenue (₹ Cr) Revenue / Employee (₹ ‘000) 11% -1% 111 104 108 109 110 561 571 563 507 529 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 -1% 1% EBITDA from operations (₹ Cr) HRO Records Processed (Al
Slide 15: Global Technology Solutions – Revenue Distribution
Global Technology Solutions– Revenue Distribution Revenue Distribution Diversified Revenue Base Revenue-base diversified across sectors 14% 15% 16% 16% 14% 4%4% BFSI 11% 6% 8% 12% 11% IT/ITES 11% 9% By Retail Sector 51% Telecom 27% 27% 28% 31% 30% 26% Industrials Others India is the main focus 50% 4
Slide 16: Global Technology Solutions – Customer Insights
Global Technology Solutions– Customer Insights Customer Insights (CLM and Non-voice BPO) 8% 10% 4% 4% 6% Customer Sector Concentration 7% Concentration 50% (% Revenue) (% Revenue) 40% 64% 8% BFSI Telecom/Media Ecommerce Manufacturing Top 10 Next 40 Others Retail/FMCG IT/ITES Others ©2023 Quess Corp
Slide 17: Operating Asset Management – Financial Performance
Operating Asset Management – Financial Performance Revenue (in ₹ cr) EBITDA from operations (in ₹ Cr) 16% 1% 30 31 30 31 689 684 690 28 651 597 5.1% 4.3% 4.5% 4.4% 4.5% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 1% 3% Key developments • OAM has seen 16% revenue growth YoY • 43 new l
Slide 18: Operating Asset Management – Operational Performance
Operating Asset Management – Operational Performance Associate Headcount# (in ‘000) Revenue/Headcount/Month (₹ '000) 10% 5% 25 25 25 24 23 92 92 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 91 1% 90 87 Associate to Core ratio 20% 89 92 100 110 107 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 -1% Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 -3%
Slide 19: Operating Asset Management – Revenue Distribution
Operating Asset Management – Revenue Distribution Revenue Distribution 8% 10% 20% 5% 29% 7% By By Business 8% Sector Segment 21% 51% 12% 16% 15% Industrials IT/ITES Education Food & Beverage FMS Security Services Others BFSI Telecom Real Estate Healthcare & Hospitality Others FMS is the largest busi
Slide 20: Operating Asset Management – Customer Insights
Operating Asset Management – Customer Insights Customer Insights (FMS + Security) 11% 21% 6% 27% 38% 9% Sector Customer Concentration Concentration (% Revenue) 19% 15% 19% 35% Industrials IT/ITES Education BFSI Real Estate Healthcare & Hospitality Top 10 Next 40 Others Others Diversified Customer Ex
Slide 21: Product Led Business – Performance snapshot
Product Led Business – Performance snapshot Financial metrics Revenue (₹ Cr) EBITDA from operations* (₹ Cr) 8% -35% 150 147 117 123 126 -16 -18 -18 -19 -21 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 3% -16% *Excluding non-cash ESOP charges Key developments Revenue increased by 8% Yo
Slide 22: Product Led Business – foundit snapshot
Product Led Business – foundit snapshot Traffic* (Mn) Consumption (Mn) 2% -11% 14.7 10.2 9.4 12.0 8.7 11.8 8.9 8.5 8.4 7.7 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 -8% 27% New Registration* (‘000s) Job Posting* (‘000s) 7% 81% 183 331 413 622 359 310 181 440 180 212 Q1'23 Q2'23 Q3'
Slide 23: Company Overview
03 ) Company Overview ©2023 Quess Corp Limited. All rights reserved QUESS
Slide 24: 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
Slide 25: 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
Slide 26: 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 61,000 384,000 525,000 Staffing Staffing Security Services Skilling Skilling Industrials OAM Recruitment Recruitment BPO/CLM + HRO WFM Services Facilit
Slide 27: 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
Slide 28: The Winning Edge: How Our Customer Proposition Sets Us Apart
The Winning Edge: How Our Customer Proposition Sets Us Apart Scale Agility Technology ~525k* associates and employees An entrepreneurial Significant frontline productivity deployed over 600+ cities 15 year old startup capabilities (e.g., WorQ, Qjobs, Taskmo) International operations in Southeast Wid
Slide 29: Our focus is on Winning Together with our Customers, People and Investors
Our focus is on Winning Together with our Customers, People and Investors Customers Investors Build Scale - Single operating Achieve and platforms for all organic business sustain 20% RoE Measure digital Deliver 20% revenues separately CAGR on OCF Annual CSAT Aspirational EBITDA of 6% across all bus
Slide 30: Investment in Leadership development
Investment in Leadership development Quess' Academia Partnerships is aimed at upskilling our Employees for leadership roles Executive Certificate Programme General Management Senior Executive in Recruitment & Selection Program Leadership Program 22 Participants | 6 Month Program 11 Participants | 9
Slide 31: Winning with Investors: The path to 20% Return on Equity
Winning with Investors: The path to 20% Sustained Growth 20% EBITDA CAGR through sales efficiency, technology and cross-sell capability 20% Return Portfolio readjustments on Equity Higher EBITDA To PAT Conversion Operating leverage through scale and technology Optimal debt leverage 20% Y-o-Y OCF gro
Slide 32: We enjoy massive macroeconomic tailwinds
We enjoy massive macroeconomic tailwinds Growing Labour Market Staffing Industry** India to remain one of the fastest growing Flexi Staffing Industry registered 14% YOY growth in 2022- major economy in 2023@ 23 and added 1.77 lakhs new employment ~ 563 million labour force, experiencing a General St
Slide 33: ESG Updates
‘04 ) ESG Updates ©2023 Quess Corp Limited. All rights reserved QUESS
Slide 34: ESG Progress – Q1 FY24
ESG Progress – Q1 FY24 What’s good for society is good for Quess Responsible Citizen Trusted Institution The People Company Environmentally Conscious Based on ©2023 Quess Corp Limited. All rights reserved. 33
Slide 35: ESG Progress – Q1 FY24
ESG Progress – Q1 FY24 What’s good for society is good for Quess Diverse Workforce Promoting Inclusivity Nurturing Work Environment Digitizing Job Discovery 92K employees are women Over 7K active PWD employees Great place to work® re-certified Monthly Avg. of 6.6K job openings (29% of Core & 18% of
Slide 36: ESG Progress – Q1 FY24
ESG Progress – Q1 FY24 What’s good for society is good for Quess Community Education Community Health School Upgradation 75 Schools covered with over 92k Over 12K Students medical screening 17K+ Students benefitted from buildings books distributed in FY23 conducted with over 4K dental & 2K vison and
Slide 37: ESG Progress – Q1 FY24
ESG Progress – Q1 FY24 What’s good for society is good for Quess Environmentally Positive Responsible Waste Management Climate Science Commitment ~300K devices repaired /refurbished by 7.3K+ Kgs of e-waste and over 7.5K+ Committed to SBTi near-term Digicare in Q1 FY24 Kgs of paper waste responsibly
Slide 38: ESG Progress – Q1 FY24
ESG Progress – Q1 FY24 What’s good for society is good for Quess Robust Code Quality and Data Privacy Safety Incident of Conduct Information security and Cyber Security Management through Whistleblower/ Data Privacy/ Quess Corp is ISO Cyber Security Council with C- WorQ & UHD Cyber-security & Human
Slide 39: Financials
‘05 ) Financials ©2023 Quess Corp Limited. All rights reserved QUESS
Slide 40: Income Statement
Income Statement Particulars ( in ₹ cr) Q1 FY24 Q1 FY23 YoY Q4 FY23 QoQ Total Revenue 4600 3979 16% 4440 4% Reported EBITDA 154 153 0% 152 1% Reported EBITDA % 3.3% 3.9% -51 bps 3.4% -8 bps Depreciation & amortisation 69 61 12% 76 -10% Interest 27 20 34% 31 -12% Other Income 4 7 -44% 4 10% Profit be
Slide 41: Balance Sheet
Balance Sheet Particulars ( in ₹ cr) 31-Mar-21 31-Mar-22 31-Mar-23 Assets Fixed Assets 431 498 646 Other Non-Current Assets 1,700 1,752 1,963 Current Assets Trade Receivables & Unbilled Revenue 1,800 2,332 2,689 Cash and Cash Equivalent 614 604 613 Loan and other current Assets 175 184 208 Total Ass
Slide 42: Segment Reporting
Segment Reporting Quarter Ended Particulars ( in ₹ cr) Jun-22 Sep-22 Dec-22 Mar-23 Jun-23 Workforce Management Revenue 2,758 2,943 3,068 3,062 3,221 EBITDA 94 79 86 86 83 EBITDA % 3.42% 2.69% 2.80% 2.81% 2.58% Global Technology Services Revenue 507 529 561 571 563 EBITDA 83 85 90 95 100 EBITDA % 16.
Slide 43: New Joinee workforce snapshot
New Joinee workforce snapshot Sector wise addition States wise addition Gender MAHARASHTRA 2239 Male Female 9,050 BFSI TAMILNADU 2076 77% 23% 3,901 Telecom UTTAR PRADESH 2019 Joinee GUJARAT 1267 982 Education and Healthcare Transfer Sourcing ORISSA 1002 698 Industrials ANDHRA PRADESH 870 73% 27% Oth
Slide 44: Winning Together
Winning Together © Quess Corp Limited 2023. All rights reserved | 43
Slide 45: 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 Quess Corp Limited platforms to drive client productivity through outsourced solutions. We provide a host of technology enabled staffing and m