Quess Corp Limited
5,315words
23turns
0analyst exchanges
0executives
Key numbers — 40 extracted
rs,
25%
71%
17%
₹ 586
6%
₹ 681
7%
₹ 353
₹ 317
₹ 57
₹ 66
Guidance — 1 items
Climate Science Commitment
opening
“Committed to SBTi near-term emission reduction target by FY25 4.”
Advertisement
Risks & concerns — 5 flagged
In Q3 and one-time tax impact of INR 13 cr on the sale of Simpliance in Q4 © Quess Corp Limited 2023.
— Corporate Updates
All rights reserved | 18 Update on Q4 operating environment Hiring environment continues to be challenging • According to foundit Insight Tracker, job posting activity remained flattish in Q4’23, as several sectors slowed down their hiring processes • Key sectors such as IT and BFSI saw decline of 3-5% in job posting activity, while FMCG and Travel saw increased activity (+10%) • Allsec payroll data shows very mild increase (i.e.
— Data Privacy and Cyber Security
• EBITDA from operations down 12% YoY to ₹ 172 crore due to slowdown in IT staffing, international staffing and growth investments • SG&A / Revenue decreased YoY from 4.4% to 4.2% due to cost initiative measures implemented at end of Q3 this year
— Profitability
Healthy distribution of contracts across customers *Integrated Facility Management Customer Insights (IFM*+Security) Industrials IT/ITES Education BFSI Healthcare & Hospitality Real Estate Others 29% 37% Customer Concentration Top 10 Next 40 Others 33% No Customer concentration risk Top 10 customers account for 29% of revenue © Quess Corp Limited 2023.
— Diversified Customer Exposure
• Revenue decline of 16% QoQ due to seasonal reduction in Qdigi revenue (down 20% QoQ) foundit developments: • New registration flow, search page and communication module for enhanced end user experience • Positive traction on new features such as resume builder and Skillyst; Customer engagement metrics continues to stay strong at 90% + © Quess Corp Limited 2023.
— Key developments
Speaking time
4
3
3
3
1
1
1
1
1
1
Advertisement
Opening remarks
Business Updates
Headcount net-addition of 74k (17% YoY growth) in FY23; Second consecutive year of 70k+ HC addition Steady 25% revenue growth despite challenging market conditions EBITDA at ₹ 586 cr. down 6% YoY; EBITDA ex-PLB at ₹ 681 cr. up 7% YoY Highest ever EBITDA by GTS at ₹ 353 cr. in FY23 vs previous high of ₹ 317 cr. in FY22 Annual OCF / EBITDA ratio at 71% for FY23; led by reduction of 5 days in DSO
Corporate Updates
Great Place to Work – Declared ‘Great Place to Work’ for 4th year in a row Reduction in Gross debt by ₹ 57 cr.; corresponding net cash increase by ₹ 66 cr. Paid interim dividend of ₹8/share in FY23 © Quess Corp Limited 2023. All rights reserved | 5 FY23 – Highlights FY23 YoY Change FY23 YoY Change Headcount 511k Revenue ₹ 17,158 cr. EBITDA ₹ 586 cr. 17% 25% 6% PAT OCF Net Debt / (cash) ₹ 223 cr. 11% ₹ 294 cr. 71% of Op-EBITDA 31% ₹ (82) cr. ₹ 66 cr. EBITDA Ex-PLB ₹ 681 cr. 7% RoE 8.4% 160 bps % EBITDA 3.41% 114 bps Book value per share ₹ 184 12% % EBITDA Ex-PLB 4.10% 66 bps EPS (dil.) ₹ 15.0 7% © Quess Corp Limited 2023. All rights reserved | 6 Q4FY23 – Highlights Q4 FY23 YoY Change Q4 FY23 YoY Change Headcount 511k Revenue ₹ 4,440 cr. EBITDA ₹ 152 cr. 17% 17% 18% EBITDA Ex-PLB ₹ 172 cr. 11% % EBITDA 3.42% 146 bps PAT OCF Net Debt / (cash) RoE ₹ 30 cr. 61% ₹ 114 cr. 117% of Op-EBITDA ₹ (82) cr. ₹ 66 cr. 4.5% 772 bps Book value per share ₹ 184 12% % EBITDA Ex-PLB 4.0% 120 bps EPS
Data Privacy and Cyber Security
Cyber Security Council with C-suite level oversight Safety Incident Management through WorQ for associates © Quess Corp Limited 2023. All rights reserved | 17 Key Corporate and Financial Updates © Quess Corp Limited 2023. All rights reserved | 18 Update on Q4 operating environment Hiring environment continues to be challenging • According to foundit Insight Tracker, job posting activity remained flattish in Q4’23, as several sectors slowed down their hiring processes • Key sectors such as IT and BFSI saw decline of 3-5% in job posting activity, while FMCG and Travel saw increased activity (+10%) • Allsec payroll data shows very mild increase (i.e. 1%) in same-customer pay- slips processed in Mar’23 vis-à-vis Mar’22 BFSI, FMCG, Non-voice BPO and Telecom were key drivers • General staffing added over 2k HC in BFSI and FMCG segment • Growth in collection business resulted in double-digit growth in Non-Voice BPO • Telecom active infra business experienced tailwind on account of 5G rollout
Profitability
• EBITDA from operations down 6% YoY to ₹ 586 cr, due to investments in PLB business SG&A / Revenue increased YoY from 5.4% to 5.7% due to higher headcount, and increased spend on salary and travel
Cash Generation
• FY23 OCF/Operating EBITDA conversion at 71%. DSO decreased by 5 days YoY to 57 days Net cash position strengthened at ₹ 82 crore in FY23 against net cash position of ₹16 crore in FY22 • • Revenue (in ₹ cr) EBITDA (in ₹ cr) & margin (%) SG&A / Revenue YoY YoY 25% consolidated 24% ex PLB 17,158 16,620 13,692 13,354 FY22 FY22 (ex PLB) FY23 FY23 (ex PLB) 700 600 500 400 300 200 100 0 YoY YoY 6% consolidated 7% ex PLB 681 635 4.8% 623 4.6% FY22 FY22 (ex- PLB) 4.1% 586 3.4% FY23 FY23 (ex- PLB) 5.4% 4.9% 5.7% 4.5% FY22 FY22 (ex PLB) FY23 FY23 (ex PLB) PAT (in ₹ cr) & margin (%) OCF (in ₹ cr) & % YoY YoY 11% consolidated 28% ex PLB 262 2.0% 251 1.8% FY22 334 2.0% 223 1.3% 428 415 79% 74% 294 71% 351 67% FY22 (ex PLB) FY23 FY23 (ex PLB) FY22 FY22 (ex PLB) FY23 FY23 (ex PLB) © Quess Corp Limited 2023. All rights reserved | 20 Q4’FY23 Financial Updates (Consolidated)
Revenue
• Up 17% YoY driven by WFM (up 16%), OAM (up 19%) and GTS (up 20%) • Down 1% QoQ, due to flat growth across platforms 3,792
Advertisement