Quess Corp Limited
4,262words
9turns
0analyst exchanges
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Key numbers — 40 extracted
rs,
20%
₹ 47
54%
₹ 4,466
21%
₹ 68
₹ 40
₹ 145
19%
12.7%
196 bps
Guidance — 1 items
Business Updates
opening
“On track to deliver 20% growth YoY across platforms Total Associate headcount reached 505K GTS achieves highest-ever Ebitda of ₹90 crore Rebranding of Monster to foundit, YoY sales growth of 40%”
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Risks & concerns — 2 flagged
All rights reserved | 16 Update on Q3 operating environment Overall muted hiring environment • The foundit Insight Tracker saw weak hiring across IT – Hardware / Software (- 3%) and BPO/ ITES (-9%).
— Corporate Updates
Healthy distribution of contracts across customers *Integrated Facility Management Customer Insights (IFM*+Security) Industrials Education IT/ITES BFSI Healthcare & Hospitality Real Estate Others 36% 29% Customer Concentration Top 10 Next 40 Others 34% No Customer concentration risk Top 10 customers account for 29% of revenue © Quess Corp Limited 2021.
— Diversified Customer Exposure
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Opening remarks
Business Updates
On track to deliver 20% growth YoY across platforms Total Associate headcount reached 505K GTS achieves highest-ever Ebitda of ₹90 crore Rebranding of Monster to foundit, YoY sales growth of 40%
Corporate Updates
DRP Hearing concluded for FY17-18 Announced & paid interim dividend of ₹8/share for FY23 Closure of Simpliance sale transaction © Quess Corp Limited 2021. All rights reserved | 6 Q3FY23 Financial Highlights – YoY Revenue ₹ 4,466cr 21% Revenue | % Growth EBITDA | % Growth EBITDA ₹ 145cr 19% EBITDA % 3.26 % 161 bps PAT OCF ₹ 86cr 3% ₹ 47cr 54% WFM GTS OAM PLB ₹ 3,068 cr 21% ₹ 561 cr 20% ₹ 689 cr 19% ₹ 147 cr 55% ₹ 86 cr 6% ₹ 90 cr 3% ₹ 31 cr -15% ₹ -27 cr - Note: All numbers are on reported basis © Quess Corp Limited 2021. All rights reserved | 7 Q3FY23 Financial Highlights – QoQ Revenue ₹ 4,466cr 4% Revenue | % Growth EBITDA | % Growth EBITDA ₹ 145cr 8% EBITDA % 3.26 % 10 bps PAT OCF ₹ 86cr 116% ₹ 47cr 31% WFM GTS OAM PLB ₹ 3,068 cr 4% ₹ 561 cr 6% ₹ 689 cr 6% ₹ 147 cr -2% ₹ 86 cr 9% ₹ 90 cr 7% ₹ 31 cr 13% ₹ -27 cr -12% Note: All numbers are on reported basis © Quess Corp Limited 2021. All rights reserved | 8 Company Overview © Quess Corp Limited 2021. All rights reserved | 9 From HR Ser
Revenue
• Up 21% YoY driven by General Staffing (up 24%), Quess Singapore (up 50%) and Conneqt (up 20%) Up 4% QoQ, due to steady execution by General Staffing (up 6%) Quess Singapore (up 8%) and IFM (up 6%)
Profitability
• EBITDA from operations down 19% YoY to ₹ 145 crore, due to investments in PLB Business specifically foundit SG&A / Revenue increased YoY from 5.2% to 5.7% due to higher headcount salary increase & increased spend on Travel. • •
Cash Generation
• Q3’23 OCF/Operating EBITDA • • conversion at 45%. Collections moved to January due to year-end holidays. DSO increased by 1 day QoQ to 59 days Net debt position at ₹ 68 crore in Q3‘23 against net cash position of ₹ 57 crore in Q2’23 Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue YoY QoQ 4,466 21% 4% 4,273 3,685 179 4.9% 200 160 120 80 40 0 YoY QoQ 145 3.3% 135 3.2% 19% 8% 4.0% 3.8% 3.6% 3.4% 3.2% 3.0% 2.8% 6.2% 5.7% 5.2% Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 Q3'22 Q2'23 Q3'23 PAT (in ₹ cr) & margin (%) OCF (in ₹ cr) & % 3% 116% 120 90 60 30 0 89 86 2.4% 40 1.9% 0.9% Q3'22 Q2'23 Q3'23 YoY 3% QoQ 2% 2% 2% 2% 2% 1% 1% 1% 1% 1% 0% 0% 0% 100 67% 100.00 0.00 68 72% 47 45% Q3'22 Q2'23 Q3'23 140% 120% 100% 80% 60% 40% 20% 0% © Quess Corp Limited 2021. All rights reserved | 18 Platform-wise Updates © Quess Corp Limited 2021. All rights reserved | 19 Workforce management – Performance Snapshot Financial Metrics Operating Metrics Revenue (in ₹ cr) Associate Headcount# (in ‘000) Co
Key developments
• General Staffing Added 56 new logos; Revenues up 24% YoY and up by 6% QoQ • IT Staffing One time Bench carried in Q2 was dissolved in Q3. SG&A as % of revenue down by 200bps QoQ • Core : Associate FTE ratio highest at 1:459 for December quarter Note: All numbers are on reported basis ^ Core excludes Temps, Retainers and Interns © Quess Corp Limited 2021. All rights reserved | 20 Workforce Management – Revenue Distribution and Customer Insights 2% 12% 7% Revenue Distribution 79% Revenue Distribution General Staffing IT Staffing India Overseas Staffing Others 10% Customer-wise Tenure (# Customers) 54% 36% < 2 Years 2-5 Years > 5 Years Staffing constitutes 98% of the revenue Good customer loyalty & healthy new customer addition Customer Insights (Gen. Staffing) Customer Insights (QITS) 20% Customer Concentration (% Revenue) 29% 2% 4% 8% 51% 11% 7% 29% Sector Concentration (% Revenue) 14% 25% BFSI Retail Telecom Industrials FMCG Logistics IT/ITES Others 12% 17% Customer Concentration (%
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