october 14th,2014 - quess corp : india's leading business services provider · provider in...

Corporate Presentation

August 2016

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2

Who Are We?

3

India’s Leading Integrated Biz Services Provider

4

Founded September 2007

Present in

Operations in North America,

Middle East and SE Asia

Pan India presence with 47

offices across 26 cities

Employees(1)

1,27,250

Credit Rating [ICRA]AA-

Listed

Listing Date: July 12, 2016

Exchanges: BSE & NSE

Ticker: QUESS

Integrated Facility

Management (IFM)

Global Technology

Solutions (GTS)

IT Solutions,

Services &

Products

Integrated

Maintenance of

Facilities

People and

Services (P&S)

Recruitment,

Staffing, RPO & Skill

Development

Industrial Asset

Management (IAM)

Industrial Asset

O&M & Managed

Services

67.72%(2)

62.58%(3)

(1) Data as of June 30, 2016;

(2) As of June 30, 2016;

(3) As of Jul 12, 2016

Market Leading Presence …

5

Market leading presence

across segments

• 3rd largest general staffing

company in India by number of

employees (1)

• Among the largest training and

skill development partners for the

Ministry of Rural Development,

based on approved project cost(1)

People & Services (P&S)

• Among the leading IAM service

providers in India, providing

industrial O&M(1), related asset

record maintenance as well as

managed services

Industrial Asset Management (IAM)

• Largest IT staff augmentation

provider in India by number of

employees (1)

Global Technology Solutions (GTS)

• Among the largest integrated

facility management service

providers in India(1) managing

~150 mn square feet of space(2)

and 550+ locations(3) in India

Integrated Facility Management (IFM)

Integrated service offerings across industries and geographies provide significant operating efficiencies as well as cross-selling opportunities

(1) Source: F&S report; (2) Data as of 2014; (3) Data as of March 31, 2016; (4) Represents respective segment’s share of total allocated segmental EBITDA

26.8%

56.6%

10.8%

5.6%

FY16 Revenue Share:

FY16 EBITDA margin:

3.5%

7.1%

6.1%

11…

~ Headcount: 10,085

20,355

84,849 5,606

FY16 EBITDA Share(4): 36.6%

38.3%

12.7%

12.4%

• Presence across North America, Middle East and South East Asia

with more than 2000 employees outside India

• Pan-India presence with 47 offices across 26 cities in India(1)

• 66 centers across India providing skill development services(1)

• Two sophisticated data centers at Ridgefield Park, New Jersey and

Roanoke, Virginia which are SSAE 16 SOC1 Type II compliant

facilities

Expansive global operations

…With Global Operations And A Pan-India Reach

6

Canada

USA

UAE

Sri Lanka

India Philippines

Malaysia Singapore

Jammu

Chandigarh

Gurgaon

Rudrapur New Delhi (2)

Jaipur Lucknow

Patna

Ahmedabad

Mumbai (5)

Pune (2)

Bengaluru(10)

Hyderabad (3)

Bhopal

Bhubaneshwar

Kolkata

Ranchi

Chennai (5)

Trichy Cochin

Coimbatore

Raipur

Guwahati

Vishakhapatnam

Imphal

Indore

Note: Numbers in brackets refer to number of offices in respective location; FY12 and FY16 denote 12 months ended March 31, 2011 and March 31, 2016 respectively;

(1) As of March 31, 2016

Financial Highlights

7

294 463 420 1,362 1,716

4.6% 4.6% 4.2% 5.3% 5.0%

0.0%

10.0%

0

2,000

FY12 FY13 FY14 FY15 FY16

EBITDA Margin

6,394 10,044 10,081

25,728

34,424


Delivering Profitable Growth Across Segments…

8

Robust Consolidated Revenue Growth…

…With Improving EBITDA Margin Profile…

…Translating to Sustained PAT* Growth

Diversified Revenue Base…

…with Increasing Share of Higher Margin Segments

FY12 FY16

Consolidated Revenue share INR mn

INR mn

INR mn

Note: Figures in INR mn, unless mentioned otherwise; FY12, FY13 and FY16 denote 12 months ended March 31, 2012, 2013 and 2016 respectively; while FY14 denotes 9 months ended

December 31, 2013, FY15 denotes 15 months ended March 31, 2015

* Restated net profit after tax before share of loss from associate and minority interest for the periods / years

Note: Figures in INR mn, unless mentioned otherwise; FY11, FY12 and FY13 denote 12 months ended March 31, 2011, 2012 and 2013 respectively; while FY14 denotes 9 months ended

December 31, 2013, FY15 denotes 15 months ended March 31, 2015 and H1 FY16 denotes 6 months ended September 30, 2015

* Restated net profit after tax before share of loss from associate and minority interest for the periods / years

GTS 32.1%

P&S 56.7%

Others 0.1%

IFM 11.2% GTS 26.8%

P&S 56.6%

Others 0.2%

IFM 10.8%

IAM 5.6%

7.1%

3.5%

6.1%

11.5%

GTS P&S IFM IAMF

Y16 E

BIT

DA

Marg

in

55% CAGR

83 171 192 672 885

1.3% 1.7% 1.9% 2.6% 2.6%

0.0%

5.0%

0

1,000


PAT Margin

… Asset Light Model With Robust Return Ratios

9

Improving Return on Equity… …With Strong Return on Capital Employed

Continuous Improvement in Debtor Days… … Accompanied by Stable Leverage Ratio

Note: Ratios for FY14 and FY15 annualized to 12 month period for comparative purpose;

RoE = Net profit after tax/ Net Worth; RoCE = EBITDA/ (Net Worth + Long-term borrowings + Short-term borrowings + Minority Interest);

Debtor Days = Trade receivables / Revenue from operations*360; Leverage Ratio = (Long-term borrowings + Short-term borrowings ) / EBITDA

11.7%

17.7% 12.9%

21.3% 25.6%


66 57

33 48 45


24.5%

26.8%

22.5% 23.1% 23.8%


1.9x 1.9x

1.1x

2.0x 2.2x


So What Does The Future Hold?

Our Management Approach

11

Set Stretch Goals that resonate across

the organisation to fire up the rank and

file

Businesses run by Presidents with full

operating authority – Nurturing a

performance oriented entrepreneurial

culture

Capital allocation within portfolio based on

performance of each business

Institutionalized client focus & flexibility in

serving customer needs

Monthly & Quarterly review of each

business focused on data and operating

metrics

1

6

3

2

5

Empowered Management

Strong Capital Allocation Policies Metric Based Review System

Customer Centricity Goal Setting

Nimble approach to problems and

decision making. Laser focus on cutting

down bureaucracy and lethargy

4 Speedy Decision Making

What Goes Behind Each Investment We Make?

12

Each Investment / Business shall have the potential to grow at 4x domestic GDP growth

rate

We aim to recover our Investments in 4-5 Years at EBITDA level, with focus on cash

generation

We will not bet our future on any one Investment

We seek targets that will be RoCE accretive

Growth

Strategy

Payback

Risk Control

Accretive

Targets

We stay away from Hostile Situations and Auctions. We believe in backing people. Friendly

Approach

2

3

4

1

Our Strategy Going Forward

13

• Expand our service portfolio and our operations through strategic

acquisitions that complement our existing operations

• Continue to improve operating margins

• Capitalize on rapid growth of e-commerce in India. Focus on last mile

logistics, shared business services and security services

• Verticalisation with focus on domain depth and operational excellence

Thank You!

Quess Corp Limited (formerly IKYA Human Capital Solutions Limited)

Quess House, 3/3/2 Bellandur Gate, Sarjapur Road

Bangalore 560103, Karnataka, India

october 14th,2014 - quess corp : india's leading business services provider · provider in...

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