Quess Corp Limited
4,582words
7turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
26%
₹ 4,273
32%
₹ 68
72%
46%
₹ 126
₹ 135
20%
6%
91bps
Risks & concerns — 4 flagged
• EBITDA from operations up 20% YoY to ₹ 135 cr, lower than revenue growth due to slowdown in IT-Staffing and Selection Business SG&A / Revenue increased YoY from 5.5% to 6.2% due to 1) Higher salary cost, 2) Increased spend on Travel and other corporate expenses PAT down 4% YoY • •
— Profitability
Slowdown in IT hiring has contributed to EBITDA drop of 55% QoQ • EBITDA margin dropped by 72bps QoQ due to investment in USA staffing in addition to slowdown in IT hiring Note: All numbers are on reported basis ^ Core excludes Temps, Retainers and Interns © Quess Corp Limited 2021.
— Cash Generation
EBITDA margin stabilized on QoQ basis, decline of ~300 bps YoY is due to contract re-negotiation with major customer.
— Key developments
Healthy distribution of contracts across customers Others 29% 39% Customer Concentration 32% No Customer concentration risk Top 10 customers account for 29% of revenue Top 10 Next 40 Others *Integrated Facility Management © Quess Corp Limited 2021.
— Diversified Customer Exposure
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Speaking time
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Opening remarks
Revenue
• Up 32% YoY driven by General Staffing (up 36%), Comtel (up 48%) and ConneQt (up 24%) • Up 7% QoQ, due to steady execution by General Staffing (up 8%) Comtel (up 11%) and Qdigi (up 41%)
Profitability
• EBITDA from operations up 20% YoY to ₹ 135 cr, lower than revenue growth due to slowdown in IT-Staffing and Selection Business SG&A / Revenue increased YoY from 5.5% to 6.2% due to 1) Higher salary cost, 2) Increased spend on Travel and other corporate expenses PAT down 4% YoY • •
Cash Generation
• Q2’23 OCF/Operating EBITDA • • conversion at 72% DSO reduced by 1 day QoQ to 58 days Company achieved net cash position ₹ 57cr in Q2‘23 against net debt position of ₹ 59cr in Q1’23 Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue YoY QoQ 4,273 32% 7% 3,979 3,228 200 160 120 80 40 0 112 3.5% YoY QoQ 153 135 3.9% 3.2% 20% 12% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% 5.5% 5.6% 6.2% Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 Q2'22 Q1'23 Q2'23 PAT (in ₹ cr) & margin (%) OCF (in ₹ cr) & % 120 90 60 30 0 68 1.7% 40 0.9% 41 1.3% Q2'22 Q1'23 Q2'23 YoY 2% QoQ 2% 2% 1% 1% 1% 1% 1% 0% 0% 0% 4% 41% 127 100.00 100% 65 56% 68 72% 0.00 Q2'22 Q1'23 Q2'23 140% 120% 100% 80% 60% 40% 20% 0% © Quess Corp Limited 2021. All rights reserved | 17 Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 18 Workforce management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount# (in ‘000) Core:Associate FTE^(Gen Staff- 1:X) 2,214 2,545 2,644 2,758 2,943 3
Key developments
• CLM: Revenue up 23% YoY. New logo addition continue to be high with 17 logos added during the quarter • Non-Voice BPO: Collection business revenue up 23% YoY • Platform based services (InsurTech in US and HRO in India): HRO platform payslips processed per quarter up 14% YoY on the back of 41 new logos won © Quess Corp Limited 2021. All rights reserved | 21 Global Technology Solutions– Revenue Distribution and Customer Insights Diversified Revenue Base 13% By Sector 46% 4% 6% 7% 24% Revenue-base diversified across sectors BFSI IT/ITES Retail Telecom Industrials Others Customer Insights (CLM and Non-voice BPO) 11% Customer Concentration (% Revenue) 46% 43% Top 10 Next 40 Others Q2FY20 Earnings Presentation 15% By Geography 85% India is the main focus 4% 7% 6% 9% 9% 5% Sector Concentration (% Revenue) India NA BFSI e-commerce Telecom/Media Manufacturing 61% IT/ITES Retail/FMCG Others © Quess Corp Limited 2021. All rights reserved | 22 Operating Asset Management – Performance Snapshot Fi
Key developments
IFM: Revenue up 33% YoY. EBITDA margin stabilized on QoQ basis, decline of ~300 bps YoY is due to contract re-negotiation with major customer. Terrier Security: Revenue up 28% on YoY basis on the back of strong HC addition (up 25% YoY), customer sales momentum remains strong with 21 new customers in the quarter Note: All numbers are on reported basis © Quess Corp Limited 2021. All rights reserved | 23 Operating Asset Management – Revenue Distribution and Customer Insights Revenue Distribution 19% By Business Segment 21% IFM Security Services 60% Others 2% 8% 7% 5% 14% By Sector 32% 15% 17% 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% 7% 18% 9% 24% Sector Concentration (% Revenue) Industrials BFSI IT/ITES Education 21% Healthcare & Hospitality 18% Real Estate
Diversified Customer Exposure
Healthy distribution of contracts across customers Others 29% 39% Customer Concentration 32% No Customer concentration risk Top 10 customers account for 29% of revenue Top 10 Next 40 Others *Integrated Facility Management © Quess Corp Limited 2021. All rights reserved | 24 Product Led Business – Performance snapshot Product Led Business Revenue (Rs Cr) Monster.com Sales (Rs Cr) Top 1k Order Renewal Rate 93 95 94 150 117 62% YoY 29.2 33.9 26.6 33.1 37% YoY 24.1 77% 103% 101% 86% 92% # New Orders 1,911 2,306 2,486 3,007 2,760 Recruiter Searches (in Mn) 4.9 5.9 7.8 9.8 9.4 19% YoY 44% YoY 92% YoY Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 EBITDA from operations (Rs Cr) Net Revenue (Rs Cr) 2 3 1069% YoY 22.3 24.3 25.5 28.2 31.2 40% YoY -9 Q2'22 Q3'22 Q4'22 -24 Q1'23 -24 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23
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