Quess Corp. Ltd. · NSE:QUESS

Quess — Q3 FY24 Earnings Presentation

44 slides from Quess's earnings presentation, Feb 2, 2024

  1. Slide 1: Cover letter to stock exchanges

    February 02, 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

  2. Slide 2: Investor Presentation Q3'FY24

    Investor Presentation Q3’FY24 02nd February 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 corporate highlights

    Leading domestic private sector employer with 557k+ Headcount For 5th consecutive year, Quess has been certified as GPTW Corporate Structure Simplication - Conneqt, Greenpiece and MFX (India) merger Quess Board has announced Interim Dividend of ₹ 4 per share Q2FY20 Earnings Presentation

  5. Slide 5: Contents

    Contents 1 Key Corporate Highlights 2 Platform-wise Updates 3 Financials 4 Company Overview 5 ESG Updates ©2023 Quess Corp Limited. All rights reserved. 4

  6. Slide 6: Key Corporate Highlights

    01 Key Corporate Highlights ©2023 Quess Corp Limited. All rights reserved. 5

  7. Slide 7: Q3'FY24 – Financial Highlights

    Q3’FY24 – Financial Highlights Figures In ₹ Cr Revenue %YoY QoQ% EBITDA %YoY QoQ% WFM 3,430 12% 3% WFM 90 4% 3% GTS 588 5% 1% GTS 108 19% 3% OAM 695 1% 1% OAM 36 16% 4% PLB 129 13% 10% PLB (10) 63% 50% Consolidated Revenue 4,842 8% 2% EBITDA 181 24% 11% PAT1 64 25% 10% EPS in ₹ 4.28 27% 12% Adj. PAT

  8. Slide 8: Q3'FY24 Financial Updates (Consolidated)

    Q3’FY24 Financial Updates (Consolidated) Revenue (In ₹ Cr) EBITDA (In ₹ Cr) & margin (%) 8% YoY 24% 4,842 181 4,748 154 164 4,466 4,600 145 152 4,440 3.2% 3.4% 3.3% 3.5% 3.7% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 2% 11% PAT (In ₹ Cr) & margin (%) EPS (In ₹) (25)% (27)% 85* 5.9

  9. Slide 9: Platform wise Updates

    02 Platform wise Updates ©2023 Quess Corp Limited. All rights reserved. 8

  10. Slide 10: Workforce Management – Performance Snapshot

    Workforce Management – Performance Snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 12% 4% 3,430 90 3,315 86 86 87 83 3,221 3,068 3,062 2.8% 2.8% 2.6% 2.6% 2.6% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 3% 3% Key developments • Annuity based business mo

  11. Slide 11: Workforce Management – Operational Performance

    Workforce Management – Operational Performance Associate Headcount# (in ‘000) Associate: Core FTE^(Gen Staff) 17% (7)% 444 512 430 459 469 387 404 435 427 379 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 3% (2)% F&F 25 27 29 31 34 Collect & Pay - Headcount SG&A / Revenue (IT Staff) 10

  12. Slide 12: Workforce Management – Segment wise Distribution

    Workforce Management – Segment wise Distribution Segment-wise distribution 1% 2% 1% 1% 11% 5% Revenue Headcount distribution distribution 83% 96% General Staffing IT Staffing India Overseas Staffing Others General Staffing IT Staffing India Overseas Staffing Others ©2023 Quess Corp Limited. All righ

  13. Slide 13: Workforce Management – Customer Insights

    Workforce Management – Customer Insights Customer Insights (Gen. Staffing) 2% BFSI 4% 23% 6% Retail 9% 32% Industrials Customer Top 10 Sector Telecom Concentration 52% Next 40 11% Concentration FMCG (% Revenue) Others (% Revenue) 25% Others 14% Logistics 23% IT/ITES Customer Insights (QITS) IT/ITES

  14. Slide 14: Global Technology Solutions

    Global Technology Solutions Financial metrics Revenue (In ₹ Cr) EBITDA from operations (In ₹ Cr) 5% 19% 588 584 108 104 100 571 95 563 90 561 17.0% 18.0% 17.8% 18.3% 16.0% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 1% 3% Key developments • Non linear Profitability growth due to • Di

  15. Slide 15: Global Technology Solutions

    Global Technology Solutions Operating Metrics Revenue Distribution Revenue / Employee (In 000’s) 8% 5% 108 109 110 113 117 150 14% 10% 11% 11% 100 16% 14% 12% 11% 50 11% 11% 0 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 31% 32% 31% 33% 28% 3% HRO Records Processed (Allsec: In ₹ lacs) 14 % 45% 44% 45% 46% 46% 40 3

  16. Slide 16: Global Technology Solutions – Diversified Across Sectors

    Global Technology Solutions Diversified Across Sectors 3% 4% 6% 4% 6% 6% 9% 10% Revenue-base 52% Customer-base 52% 23% 26% BFSI IT/ITES Retail Industrial Telecom Others BFSI IT/ITES Retail Industrials Telecom Others ©2023 Quess Corp Limited. All rights reserved. 15

  17. Slide 17: Global Technology Solutions – Customer Insights

    Global Technology Solutions – Customer Insights Customer Insights (CLM and Non-voice BPO) 12% 5% 5% 4% 7% Customer Sector Concentration 50% 8% Concentration (% Revenue) (% Revenue) 38% 7% 65% Top 10 Next 40 Others BFSI Ecommerce Telecom/Media Manufacturing Retail/FMCG IT/ITES Others ©2023 Quess Corp

  18. Slide 18: Operating Asset Management – Financial Performance

    Operating Asset Management – Financial Performance Revenue (in ₹ Cr) EBITDA from operations (in ₹ Cr) 1% 16% 720 36 705 695 35 700 689 690 684 680 660 31 31 30 640 5.2% 5% 5.0% 620 4.5% 4.4% 4.5% 600 4% Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 (1)% 4% Key developments • Won 32 new

  19. Slide 19: Operating Asset Management – Operational Performance

    Operating Asset Management – Operational Performance Associate Headcount# (in ‘000) Revenue/Headcount/Month (₹ '000) 4% (1)% 25 25 25 26 26 30 20 92 92 91 91 10 90 0 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 0% Associate to Core ratio 5% 110 107 150 100 104 105 100 50 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 0 1% Q3'23 Q4

  20. Slide 20: Operating Asset Management – Sector-wise Distribution

    Operating Asset Management – Sector-wise Distribution Distribution 6% 13% 9% 2% 7% 5% By By Revenue Headcount 58% 57% 20% 22% IFMS Security Services IFMS Security Services Industrial Services Telecom Network Services Industrial Services Telecom Network Services Others Others FMS is the largest busin

  21. Slide 21: Operating Asset Management – Customer Insights

    Operating Asset Management – Customer Insights Customer Insights (IFM + Security) 14% 12% 24% 15% 36% 13% Sector Customer Concentration 0% Concentration (% Revenue) 10% 21% 15% 39% IT/ITES Education Industrials BFSI Top 10 Next 40 Others Real Estate Telecom Healthcare & Hospitality Others Diversifie

  22. Slide 22: Product Led Business – Performance snapshot

    Product Led Business – Performance snapshot Financial metrics Revenue (In ₹ Cr) EBITDA from operations* (In ₹ Cr) (13)% 147 143 129 -6 126 123 -16 -19 -18 -21 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 (10)% *Excluding non cash ESOP charges Key developments • Sales growth seen in Fo

  23. Slide 23: Product Led Business – foundit Snapshot

    Product Led Business – foundit Snapshot New Registration & Traffic Consumption (Mn) 30.7 28.2 35.9 37.6 (21)% 22.6 85 84 77 74 67 1,077 931 1,333 1,367 549 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 New Registrations ('000) Traffic (Mn) (9)% Profile Updates (Mn) Job Posting (‘000s)

  24. Slide 24: Financials

    03 Financials ©2023 Quess Corp Limited. All rights reserved. 23

  25. Slide 25: Income Statement

    Income Statement Particulars ( in ₹ Cr) Q3 FY24 Q3 FY23 YoY Q2 FY24 QoQ Total Revenue 4,842 4,466 8% 4,748 2% Reported EBITDA 181 145 24% 164 11% Reported EBITDA % 3.7% 3.3% 48bps 3.4% 29bps Depreciation & amortisation 72 70 3% 70 3% Interest 35 29 22% 28 26% Other Income 5 7 (23)% 15 (65)% Profit b

  26. Slide 26: Segment Reporting

    Segment Reporting Quarter Ended Particulars ( In ₹ Cr) Dec-22 Mar-23 Jun-23 Sept-23 Dec-23 Workforce Management Revenue 3,068 3,062 3,221 3,315 3,430 EBITDA 86 86 83 87 90 EBITDA % 2.80% 2.81% 2.58% 2.63% 2.61% Global Technology Services Revenue 561 571 563 584 588 EBITDA 90 95 100 104 108 EBITDA %

  27. Slide 27: Company Overview

    4) Company Overview QUESS

  28. Slide 28: 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

  29. Slide 29: 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

  30. Slide 30: 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 61,000 384,000 556,699 Staffing Staffing Security Services Skilling Skilling Industrials OAM Recruitment Recruitment BPO/CLM + HRO WFM Services Facilit

  31. Slide 31: 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

  32. Slide 32: The Winning Edge: How Our Customer Proposition Sets Us Apart

    The Winning Edge: How Our Customer Proposition Sets Us Apart Scale Agility Technology ~556,699* 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

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: We enjoy massive macroeconomic tailwind

    We enjoy massive macroeconomic tailwind Growing Labour Market Staffing Industry** India to remain one of the fastest growing Flexi Staffing Industry registered 14% YOY growth in 2022-23 major economy in 2023-24@ and 1.36 lakhs new employment in last 4 quarters ~ 563 million labour force, experiencin

  36. Slide 36: New Joinee workforce snapshot

    New Joinee workforce snapshot Sector wise additions Additions in leading States Gender (Addition of 12,389) MAHARASHTRA 3,637 Male Female 9,996 BFSI UTTAR PRADESH 2,521 82% 18% 3,176 Industrials KARNATAKA 1,597 Joinee 2,599 Retail ANDHRA PRADESH 1,412 Transfer Sourcing 1,862 Telecom Healthcare TAMIL

  37. Slide 37: ESG Updates

    5 ESG Updates ©2023 Quess Corp Limited. All rights reserved. 36

  38. Slide 38: ESG Progress – Q2 FY24

    ESG Progress – Q2 FY24 What’s good for society is good for Quess Responsible Citizen Trusted Institution The People Company Environmentally Conscious ©2023 Quess Corp Limited. All rights reserved. 37

  39. Slide 39: ESG Progress – Q3 FY24

    ESG Progress – Q3 FY24 What’s good for society is good for Quess Diverse Workforce Promoting Inclusivity Nurturing Work Environment Digitizing Job Discovery 99K+ employees are women Over 7.1K+ active PWD Great place to work® re-certified Monthly Avg. of 8K+ job openings (29% of Core & 18% of employe

  40. Slide 40: ESG Progress – Q3 FY24

    ESG Progress – Q3 FY24 What’s good for society is good for Quess School Upgradation Academic Support Health & Wellbeing Adopted 75 Government School • Education Kit : Provided 14K+ School • 12K+ Students screened under Annual focused on providing basic facilities Bags & 8K+ Notebooks Given. health S

  41. Slide 41: ESG Progress – Q3 FY24

    ESG Progress – Q3 FY24 What’s good for society is good for Quess Environmentally Positive Responsible Waste Management Green Spaces Over 300K+ devices repaired /refurbished 7.3K+ Kgs of e-waste and over 7.5K+ 9.9 Million + sq. ft of green by Digicare in Q3 FY24 Kgs of paper waste responsibly space m

  42. Slide 42: ESG Progress – Q3 FY24

    ESG Progress – Q3 FY24 What’s good for society is good for Quess Quality and Data Privacy Safety Incident Management Information security and Cyber Security Cyber Security Council with C-suite Quess Corp is ISO 37001: 2016, ISO level oversight WorQ & UHD 27001: 2013, and ISO 9001: 2015 certified SIE

  43. Slide 43: Winning Together

    Winning Together © Quess Corp Limited 2023. All rights reserved | 42

  44. Slide 44: 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

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