QUESSNSEAugust 11, 2022

Quess Corp Limited

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Key numbers — 40 extracted
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7 auess WINNING TOGETHER August 11, 2022 BSE Limited Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Security Code- 539978 National Stock Exchange of India Limited "Exc
52%
Quess Corp Limited 2021. All rights reserved | 3 Best ever quarter by Headcount Addition, PAT up 52% YoY Leading domestic private sector employer, with ~470,000 FTE Q2FY20 Earnings Presentation © Q
27%
hts reserved | 4 Q1 FY23 – Highlights Q1 FY23 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 1
₹ 65
ed | 4 Q1 FY23 – Highlights Q1 FY23 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4%
26%
1 FY23 – Highlights Q1 FY23 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.
₹ 3,979
ights Q1 FY23 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITD
33%
3 YoY Change Q1 FY23 YoY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85%
₹ 59
oY Change Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85% 106 bps Book value per
₹ 92
Headcount 470k 27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85% 106 bps Book value per share ₹ 1
₹ 153
27% OCF ₹ 65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85% 106 bps Book value per share ₹ 166.4 7% PAT ₹ 68
4%
65 cr. 26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85% 106 bps Book value per share ₹ 166.4 7% PAT ₹ 68 cr. 5
10.3%
26% Revenue ₹ 3,979 cr. 33% Net Debt / (cash) ₹ 59 cr. ₹ 92 cr. EBITDA ₹ 153 cr. 4% RoE 10.3% 288bps % EBITDA 3.85% 106 bps Book value per share ₹ 166.4 7% PAT ₹ 68 cr. 52% EPS (dil
Risks & concerns — 2 flagged
• EBITDA from operations up 4% YoY to ₹ 153 cr, margin decline due to: 1.
— Profitability
Healthy distribution of contracts across customers Others 28% 38% Customer Concentration 34% No Customer concentration risk Top 10 customers account for 28% of revenue Top 10 Next 40 Others *Integrated Facility Management © Quess Corp Limited 2021.
— Diversified Customer Exposure
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Speaking time
Key developments
2
Revenue
1
Profitability
1
Cash Generation
1
Diversified Customer Exposure
1
Monster - Key developments
1
Opening remarks
Revenue
• Up 33% YoY driven by General Staffing (up 34%), QITS (up 33%), and ConneQt (up 33%) • Up 5% QoQ, due to strong execution. General Staffing (up 6%) Singapore IT Staffing (up 16%), and Conneqt (up 6%)
Profitability
• EBITDA from operations up 4% YoY to ₹ 153 cr, margin decline due to: 1. Increase cash burn in Product Led Business 2. Increase in SG&A / Revenue from 5.2% to 5.6% due to 1) Higher salary cost, 2) Increased spend on tech tools 3. IFM EBITDA margin declined by ~220 bps YoY, due to contract re- negotiation with a major customer • PAT up 52% YoY
Cash Generation
• Q1’23 OCF/Operating EBITDA • conversion at 56% DSO increased to 59 days from at 56 days in Q4’FY22 Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue YoY QoQ 3,979 33% 5% YoY QoQ 4% 17% 3,792 2,987 200 160 120 80 40 0 185 153 147 4.9% 4.9% 3.9% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 5.7% 5.2% 5.6% Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 PAT (in ₹ cr) & margin (%) OCF (in ₹ cr) & % 120 90 60 30 0 77 68 2.0% 1.7% 45 1.5% 52% 12% YoY 2% QoQ 2% 2% 1% 1% 1% 1% 1% 0% 0% 0% 88 75% 100.00 0.00 131 88% 140% 120% 100% 80% 60% 40% 20% 0% 65 56% Q1'22 Q4'22 Q1'23 Q1'22 Q4'22 Q1'23 © Quess Corp Limited 2021. All rights reserved | 17 Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 18 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 Seg
Key developments
• CLM: Revenue up 33% YoY. Non-voice CLM grew by 10% YoY. New logo addition continue to be high with 31 logos added during the quarter • Non-CLM BPO: Collection business revenue up 35% YoY • Platform based services (InsurTech in US and HRO in India): HRO platform payslips processed per quarter up 18% YoY on the back of 18 new logos won © Quess Corp Limited 2021. All rights reserved | 23 Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 11% 5% 7% 12% By Sector 47% 19% Revenue-base diversified across sectors BFSI IT/ITES Retail Telecom Industrials Others Customer Insights (CLM and Non-voice BPO) 13% Customer Concentration (% Revenue) 48% 44% 11% By Geography 89% India is the main focus 3% 8% 4% 6% 8% 11% Sector Concentration (% Revenue) 59% India NA BFSI e-commerce Telecom/Media Manufacturing IT/ITES Retail/FMCG Others Top 10 Next 40 Others Q2FY20 Earnings Presentation © Quess Corp Limited 2021. All rights reserved | 24 Operating Asset Manag
Key developments
 IFM: Revenue up 25% YoY. EBITDA margin declined by ~220 bps YoY, due to contract re-negotiation with major customer. Added 23 new customers during the quarter.  Terrier Security: Revenue up 29% on YoY basis on the back of strong HC addition (up 27% YoY), customer sales momentum remains strong with 15 new customers in the quarter * EBITDA from operations excludes extraordinary ECL of ₹ 12 cr © Quess Corp Limited 2021. All rights reserved | 25 Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 19% By Business Segment 21% IFM Security Services 60% Others 2% 9% 6% 6% 14% 33% By Sector 14% 16% Industrials BFSI IT/ITES Education Healthcare & Hospitality Telecom Real Estate Others IFM* is the largest business segment Revenue-base diversified across sectors Customer Insights (IFM*+Security) 3% 11% 25% 7% 18% Sector Concentration (% Revenue) Industrials BFSI IT/ITES Education 20% Healthcare & Hospitality 17% Real Estate
Diversified Customer Exposure
Healthy distribution of contracts across customers Others 28% 38% Customer Concentration 34% No Customer concentration risk Top 10 customers account for 28% of revenue Top 10 Next 40 Others *Integrated Facility Management © Quess Corp Limited 2021. All rights reserved | 26 Product Led Business – Performance snapshot Product Led Business Revenue (Rs Cr) 93 95 94 117 109% YoY 56 24.1 16.9 Monster.com Sales (Rs Cr) Top 1k Order Renewal Rate 29.2 33.9 26.6 57% YoY 61% 77% 103% 101% 86% # New Orders 1,911 2,306 2,486 3,007 3,081 Recruiter Searches (in Mn) 3.1 4.9 5.9 7.8 9.8 41% YoY 61% YoY 216% YoY Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 EBITDA from operations (Rs Cr) Net Revenue (Rs Cr) 2 3 200% YoY 22.3 24.3 25.5 28.2 53% YoY 18.4 -8 -9 Q1'22 Q2'22 Q3'22 Q4'22 -24 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23
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