Summary Links:
* Summaries created by AI. Please verify by checking the actual call transcript.
Quess Corp Limited Q1 FY 2025 Earnings Conference Call Summary
Transcript Availability • Transcript from the earnings call on July 30, 2024, available on investor relations website. • Key management personnel included Group CEO Mr. Guruprasad Srinivasan and Group CFO Mr. Kamal Pal Hoda. • Hosted by IIFL Securities Limited with a Q&A session.
Financial Performance Highlights • Revenue: Achieved a run rate of INR 5,000 crores, 9% year-on-year growth. • Headcount: Added over 30,000 associates, total headcount at 597,000. • EBITDA: Grew by 19% year-on-year, but down 6% sequentially. • Profit After Tax: Increased by 132% year-on-year to INR 112 crores. • Debt Repayment: Nearly INR 100 crores repaid, reducing gross debt to under INR 300 crores.
Segment Performance • Workforce Management: Revenue of INR 3,622 crores, up 12% year-on-year. • Global Technology Solutions: Revenue of INR 610 crores. • Operating Asset Management: Revenue of INR 733 crores. • Foundit: Reported 30% year-on-year sales growth with reduced cash burn.
Strategic Initiatives • Preparing for a three-way demerger to enhance leadership and operational capabilities. • Focus on government initiatives for job creation and skill development. • Anticipating strong growth supported by private sector investments.
Management Insights • Emphasis on workforce skilling and formal employment. • Addressing labor shortages in manufacturing through satellite offices. • Positive outlook for IT staffing sector with expected recovery in hiring and margins.
Q&A Highlights • Discussion on working capital dynamics and DSO for general staffing. • Insights on employment and skilling initiatives and their potential impact on margins. • Expectations for improved hiring in IT staffing and addressing labor shortages in manufacturing.
Future Outlook • Anticipation of wage hikes in Q3 and return to 4% margin level by end of Q2. • Confidence in maintaining high growth trajectory, particularly in the Foundit platform. • Planned demerger expected to be completed by Q1 of the following year to unlock value.
Quess Corp Limited Q4 FY 2024 Earnings Conference Call Summary
Transcript Availability • Transcript from May 10, 2024, earnings call available on investor relations website. • Featured senior management including Group CEO and CFO. • Communication signed by Kundan K. Lal, Company Secretary.
Financial Performance Highlights • Record EBITDA: Highest quarterly and annual EBITDA achieved. • Revenue Growth: 15% increase in revenue; total annual revenue of INR 19,100 crores (11% YoY). • EBITDA Increase: 46% increase in EBITDA; rose to INR 694 crores (18% YoY). • Profit After Tax: Grew by 26% to INR 280 crores. • Cost Management: Employee headcount reduced from 5,500 to 5,300.
Segment Performance • Workforce Management: Revenues grew 14% YoY, driven by General Staffing. • GTS Revenues: Increased by 6%, strong growth in CXM business. • Operating Asset Management: 4% revenue rise; product-led business saw an 8% decline. • Divestment: Qdigi business divested with a 15% IRR.
Strategic Initiatives • Demerger Announcement: Proposed three-way demerger to enhance value creation. • Tax Updates: Effective tax rates decreased; guidance for FY 2025 set between 10% to 11%.
Management Insights • Internal Efficiency: Focus on improving EBITDA margins and customer contracts. • Days Sales Outstanding (DSO): Reduction due to disciplined working capital management. • Manufacturing Sector Growth: Significant investments and headcount doubling anticipated.
Future Outlook • Foundit Strategy: Diversification of client base; path to operational breakeven by FY 2025. • Revenue Guidance: GTS and OAM businesses expected to grow; no formal revenue guidance provided. • Sustainability of ACV: Long-term contracts in CXM and EXM segments contributing to stable revenue.
Conclusion • Management remains optimistic about growth across various segments, emphasizing operational efficiency and strategic initiatives to enhance shareholder value.
Quess Corp Limited Q3 FY2024 Analyst Call Summary
Transcript Availability • Transcript from Q3 FY2024 analyst call on February 5, 2024, available on investor relations website. • Hosted by IIFL Securities with key management, including Group CEO and CFO.
Financial Performance Highlights • Revenue Growth: 13% increase; total revenues of INR 4,842 Crores. • EBITDA Growth: 34% rise over six quarters; EBITDA margin improved to 3.7%. • Employee Count: Total of 557,000 after adding over 10,000 associates. • New Contracts: Secured 170 contracts worth INR 416 Crores. • Sector Contributions: Key sectors include industrial, BFSI, retail, telecom, e-commerce, and FMCG.
Operational Insights • Workforce Management: Revenue grew 12% year-on-year; general staffing contributed significantly. • Global Technology Solutions (GTS): Revenue increased 5% year-on-year; growth in non-voice BPM and customer experience management. • AI Product Launch: Foundit 2.0 launched to over 550 customers; positive feedback received.
Challenges and Strategic Focus • IT Sector Slowdown: Continued challenges in the IT sector. • Cost Management: Focus on reducing costs and improving efficiency. • Future Plans: Leverage AI and automation; expand international sales.
Q&A Session Highlights • Margin Sustainability: Maintained margins between 16% to 18% in GTS; growth attributed to optimized cost structures. • Foundit Break-even: On track to achieve break-even by Q4. • Tax Litigation: Ongoing appeals related to Section 80JJAA; potential impact of INR 158 Crores.
Recognition and Culture • Great Place to Work: Certified for the fifth consecutive year with improved survey scores. • Customer Satisfaction: CSAT at 91%; all-time high Net Promoter Score (NPS).
Conclusion • Consistent growth in EBITDA over six quarters; commitment to profitable growth and operational consolidation moving forward.
Quess Corp Limited Q2 FY2024 Earnings Conference Call Summary
Announcement Details • Date of Announcement: November 13, 2023 • Conference Call Date: November 7, 2023 • Hosted by: IIFL Securities • Key Management Present: • Group CEO: Mr. Guruprasad Srinivasan • Group CFO: Mr. Kamal Pal Hoda • Transcript Availability: Accessible on the investor relations website
Financial Highlights • Revenue Growth: • 11% year-on-year, totaling INR 4,748 Crores • EBITDA Growth: • 21% year-on-year, reaching INR 164 Crores • EBITDA margin increased to 3.4% • Profit After Tax: • Surged by 79% year-on-year • Earnings per share increased by 50% to INR 4.85 • Headcount: • Increased by over 21,000, totaling over 547,000 associates • Debt Reduction: • Gross debt reduced to INR 473 Crores, lowest in ten quarters • Days Sales Outstanding (DSO): • Improved to 56 days
Segment Performance • Workforce Management: • Revenue grew by 13% year-on-year, driven by manufacturing and BFSI sectors • GTS Platform: • Strong performance with revenue and EBITDA increases • Operating Asset Management: • 8% revenue growth supported by new contracts • Product-led Business: • 13% revenue increase with future profitability plans
Strategic Insights • Focus on Profitable Growth: • Emphasis on operational excellence and strategic investments • Customer Contracts: • Secured 235 new contracts despite IT staffing challenges • Future Outlook: • Optimism for performance during the festive season
Management Discussion • Core-to-Associate Ratio: • Influenced by strong demand in manufacturing, retail, and BFSI sectors • North American Segment: • Reduction in losses, with a breakeven target for Foundit by year-end • Operating Margins: • Aiming for break-even by end of Q4 FY2024, with General Staffing as a key driver • Product-led Business Growth: • Consistent 35% year-on-year growth expected to continue
Additional Updates • Tax Matters: • Ongoing disputes discussed with updates provided • Vedang Stake Valuation: • Valuation based on a pre-established share purchase agreement from 2017-18 • EBITDA Margins for Vedang: • Averaging between 9% to 10%, higher than operating asset management
Conclusion • Management expressed confidence in growth trajectory and wished attendees a happy Deepavali and prosperous New Year.
Quess Corp Limited 16th Annual General Meeting Summary
Meeting Details • Date: September 26, 2023 • Submission Date: October 3, 2023 • Chair: Ajit Isaac • Format: Video conferencing
Key Updates • New Appointment: Kamal Pal Hoda as Group Chief Financial Officer • Workforce Growth: Increased from 437,000 to 511,000 employees • Organizational Achievements: • Expanded to 83 offices • Enhanced digital assets • Divested Simpliance for ₹120 Crores • Performance Highlights: • Strong results in Global Technology Solutions and Operating Asset Management
Financial Performance (FY23) • Headcount: 511,000 • Revenue: ₹17,158 Crores (17% YoY growth) • EBITDA: ₹586 Crores (6% decrease) • Adjusted EBITDA: ₹681 Crores (7% increase) • Operating PAT: ₹223 Crores (11% decrease) • Normalized PAT: ₹334 Crores • OCF Conversion to EBITDA: 71%
Platform Performances • Workforce Management: • Revenue: ₹11,831 Crores (25% growth) • EBITDA: ₹345 Crores (18% growth) • Global Technology Solutions: • Revenue: ₹2,168 Crores (23% growth) • EBITDA: ₹353 Crores (11% growth) • Operating Asset Management: • Revenue: ₹2,622 Crores (24% growth) • EBITDA: ₹120 Crores (flat) • Product Led Business: • Revenue: ₹538 Crores (58% growth) • Loss: ₹95 Crores due to investments
Future Goals • Dividend Declared: ₹8 per share • Focus for FY24: • Achieve double-digit growth • Improve margins through digital transformation • Unlock value across businesses • Commitment: Social responsibility, diversity, and long-term shareholder value creation
Conference Call Highlights • Reappointment of Auditors: Deloitte Haskins & Sells LLP for five years • Directorship Continuation: Mr. Chandran Ratnaswami beyond 75 years • Shareholder Q&A: • Topics included employee welfare, manufacturing potential in India, fund deployment from Simpliance sale, staffing in smaller cities, and IEPF process. • Management Responses: • Emphasized employee wellness and productivity • Discussed India’s potential as a manufacturing hub • Addressed concerns about debt reduction and margin improvement
Conclusion • Meeting Closure: Ajit Isaac thanked shareholders and employees, confirmed voting results would be posted online, and officially closed the meeting at 4:30 PM.