Quess Corp. Ltd. · NSE:QUESS

Quess — Q4 FY22 Earnings Presentation

37 slides from Quess's earnings presentation, May 26, 2022

  1. Slide 1: Quess Corp exchange filing cover letter

    QUESS WINNING TOGETHER May 26, 2022 BSE Limited N a.tio nal Stock Exchange of India Limited Floor 25, Phiroze Jeejeebhoy Towers, "Exd ange Plaza", Bandra-Kurla Complex, Dalal Street, Band1 a (East), Mumbai-400001 MumlJai-400051 Security Code- 539978 NSE i,ymbol- QUESS Dear Sir / Madam, Sub: Investor

  2. Slide 2: Investor Presentation Q4'FY22 & FY22

    Investor Presentation Q4’FY22 & FY22 © Quess Corp Limited 2021. All rights reserved | 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: 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

  5. Slide 5: Best ever year by Revenue and PBT

    Best ever year by Revenue and PBT Leading domestic private sector employer, with ~437,000 FTE Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 4

  6. Slide 6: FY22 – Highlights

    FY22 – Highlights FY22 YoY Change FY22 YoY Change Net Debt Headcount 437k 20% ₹ (16) cr. ₹ 18 cr. / (cash) Revenue ₹ 13,692 cr. 26% RoE 10.0% 692bps EBITDA1 ₹ 668 cr. 16% Book value INR 164.7 4% per share % EBITDA 4.9% 45bps EPS (dil.) INR 16.2 318% Dividend Paid PAT ₹ 251 cr. 241% INR 4 / Share2 Se

  7. Slide 7: FY22 Business Highlights

    FY22 Business Highlights Workforce Management: Associate headcount crosses 300k  General Staffing: Ranked 48 in SIA’s 50 Largest Global Staffing Firms 2021 list  Conneqt: Crosses ₹ 100cr in monthly revenue  Monster: Raised ₹ 137.5cr at a valuation of ~ USD 100mn in Dec’21, up from ~USD 15mn in Ja

  8. Slide 8: Q4FY22 – Financial Highlights

    Q4FY22 – Financial Highlights Revenue EBITDA EBITDA % PAT OCF 3,792 ₹ cr 185 ₹ cr 4.9 % 77 ₹ cr 113 ₹ cr 26% YoY 18% YoY 232% YoY 76% of Operating EBITDA Workforce Global Technology Operating Asset Management Solutions Management Revenue | % Change 2,570 ₹ cr | 28% YoY 645 ₹ cr | 22% YoY 577 ₹ cr |

  9. Slide 9: Company Overview

    Company Overview © Quess Corp Limited 2021. All rights reserved | 8

  10. Slide 10: From HR Services to a digitally-enabled Services Platform

    From HR Services to a digitally-enabled Services Platform HR Services Business Services Services Platform Phases 2007 - 2013 2014 - 2020 2020 - present # HC 61,000 384,000 437,000 Staffing Staffing Security Services Services Skilling Skilling Industrials Recruitment Recruitment BPO/CLM + HRO Facilit

  11. Slide 11: Our operations are spread across synergistic platforms

    Our operations are spread across synergistic platforms Global Technology Operating Asset Workforce Management Solutions Management Emerging Business  General staffing across  CLM solutions (Voice and  Facilities management Retail, BFSI, Telecom, Non-voice) delivered from solutions Industrial, etc

  12. Slide 12: Our focus is on Winning Together with our 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

  13. 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 20% Return on Equity businesses Higher EBITDA To PAT Conversion 20

  14. 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

  15. 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%) hired in FY22 good for  Business model drives e-waste reduction

  16. Slide 16: Key Corporate and Financial Updates

    Key Corporate and Financial Updates © Quess Corp Limited 2021. All rights reserved | 15

  17. Slide 17: Update on Q4 operating environment

    Update on Q4 operating environment  Opportunity-rich hiring environment… • Q4 saw cumulative GST collection of ₹ 4,13,500cr, an increase of 6% on QoQ basis • The Monster Employment Index (MEI)* saw hiring activity increased by 6% between Mar-21 and Mar-22 • Our Allsec payroll data shows a 17% incre

  18. Slide 18: FY22 Financial Updates

    FY22 Financial Updates Revenue: Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue  Up 26% YoY driven by General Staffing (up 13,692 26% 16% 28%), QITS (up 42%), and Conneqt (up 28%) 680 668 24.5% 24.0% 6.0% 5.4% 640 Profitability: 10,837 23.5% 600 577 23.0%  EBITDA from operations up

  19. Slide 19: Q4'22 Financial Updates

    Q4’22 Financial Updates Revenue:  Up 26% YoY driven by General Staffing (up 25%), Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue QITS (up 62%), and IFM (up 27%) YoY 26% YoY 18%  Up 3% QoQ, given macroeconomic tailwinds 3,685 3,792 QoQ 3% 185 QoQ12.0%3% 200 179 5.2% 5.3% and strong

  20. Slide 20: Platform-wise Updates

    Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 19

  21. Slide 21: Workforce management – Performance Snapshot

    Workforce management – Performance Snapshot Financial Metrics Operating Metrics Revenue (Rs Cr) Associate Headcount# (in ‘000) Core:Associate FTE^(Gen Staff- 1:X) 2,570 28% 19% 17% 2,472 302 428 2,011 2,005 2,143 YoY YoY 424 YoY 290 281 373 379 253 256 367 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q

  22. Slide 22: Workforce Management – Revenue Distribution and Customer Insights

    Workforce Management – Revenue Distribution and Customer Insights 2% Revenue Distribution 11% 8% General Staffing < 2 Years 8% IT Staffing India Customer-wise Revenue 44% 2-5 Years Distribution Tenure Overseas Staffing (# Customers) 48% > 5 Years Others 79% Good customer loyalty & healthy new custom

  23. Slide 23: Global Technology Solutions – Performance Snapshot

    Global Technology Solutions – Performance Snapshot (excl. Emerging Businesses) Financial Metrics Revenue Distribution Operating Metrics Revenue (Rs Cr) Revenue / Employee (Rs ‘000) 20% 7% 502 541 551 132 128 459 461 YoY 125 126 YoY 15% 16% 16% 15% 14% 123 21% 20% 20% 20% 20% Q4'21 Q1'22 Q2'22 Q3'22

  24. Slide 24: Global Technology Solutions – Revenue Distribution and Customer Insights

    Global Technology Solutions– Revenue Distribution and Customer Insights (excl. Emerging Businesses) Diversified Revenue Base 18% BFSI 23% IT/ITES 5% 42% By Retail By India 6% Sector Geography Telecom NA 7% Industrials Others 77% 22% Revenue-base diversified across sectors India is the main focus Cus

  25. Slide 25: Operating Asset Management – Performance Snapshot

    Operating Asset Management – Performance Snapshot Financial Metrics Operating Metrics Revenue (Rs Cr) 24% Associate Headcount ('000) Revenue/Headcount/Month (Rs '000) 578 577 YoY 22% 465 465 490 23 22 22 23 23 YoY YoY 83 84 74 69 70 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 EBITDA

  26. Slide 26: Operating Asset Management – Revenue Distribution and Customer Insights

    Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 3% 6% Industrials 18% 5% BFSI IFM 33% 9% 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

  27. Slide 27: Emerging Business – Monster.com – Performance snapshot

    Emerging Business – Monster.com – Performance snapshot Financial Metrics Operating Metrics Sales (Rs Cr) 62% # New Orders Top 1k Order Renewal Rate 80% 68% 33.9 YoY 103% 101% YoY 29.2 YoY 24.1 77% 20.9 3,007 56% 61% 16.9 2,486 2,306 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 1,911 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 1

  28. Slide 28: Emerging Businesses – Blue Collar Jobs

    Emerging Businesses – Blue Collar Jobs New Users Signed Up External Customers Key Operational Metrics (Q4 FY22) (in Mn) 60% 5,067 40% ▪ 240K + Monthly Active Users & 100K + DAU YoY 3,545 YoY ▪ 26L Attendance Markings Monthly and 6L + shifts 1.54 2,260 supervised thru digital supervisor reducing manu

  29. Slide 29: Annexures

    Annexures © Quess Corp Limited 2021. All rights reserved | 28

  30. Slide 30: Income Statement

    Income Statement Particulars ( in ₹ cr) Q4 FY22 Q4 FY21 Q3 FY22 YoY QoQ FY22 FY21 YoY Revenue from operations 3,792 3,005 3,685 26% 3% 13,692 10,837 26% Less: Employee benefit expense (3,228) (2,563) (3,102) 26% 4% (11,687) (9,297) 26% Cost of material (84) (57) (77) 47% 8% (279) (201) 39% Other exp

  31. Slide 31: Balance Sheet

    Balance Sheet Particulars ( in ₹ cr ) 31-Mar-22 31-Mar-21 Var % Non-current assets Fixed assets 498 431 16% Intangibles 1,174 1,104 6% Investments 10 4 154% Other non-current assets 568 591 -4% Current assets Trade receivables 1,270 894 42% Unbilled revenue 1,062 905 17% Cash and cash equivalents 60

  32. Slide 32: Segment Reporting

    Segment Reporting Quarter Ended Particulars ( in ₹ cr) Mar-22 Dec-21 Sep-21 Jun-21 Mar-21 Workforce Management Platform Revenue 2,570 2,472 2,143 2,005 2,011 Reported EBITDA 89 76 39 70 37 Reported EBITDA % 3.47% 3.09% 1.84% 3.47% 1.85% EBITDA from operations 72 74 EBITDA from operations % 3.34% 3.6

  33. Slide 33: 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

  34. Slide 34: 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

  35. Slide 35: Our customer proposition is unrivalled

    Our customer proposition is unrivalled Scale Agility Technology  ~437,000* 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

  36. Slide 36: Winning Together

    Winning Together In your win lies our win © Quess Corp Limited 2021. All rights reserved | 35

  37. Slide 37: 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 — Q4 FY22 Earnings Presentation on 6ix