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Quess Corp Ltd.

BSE: 539978 Sector: Others
NSE: QUESS ISIN Code: INE615P01015
BSE 10:17 | 14 May 641.00 -3.00
(-0.47%)
OPEN

646.40

HIGH

647.15

LOW

641.00

NSE 10:09 | 14 May 645.40 2.20
(0.34%)
OPEN

643.20

HIGH

648.70

LOW

643.05

OPEN 646.40
PREVIOUS CLOSE 644.00
VOLUME 1633
52-Week high 807.00
52-Week low 165.40
P/E
Mkt Cap.(Rs cr) 9,466
Buy Price 640.35
Buy Qty 10.00
Sell Price 641.70
Sell Qty 64.00
OPEN 646.40
CLOSE 644.00
VOLUME 1633
52-Week high 807.00
52-Week low 165.40
P/E
Mkt Cap.(Rs cr) 9,466
Buy Price 640.35
Buy Qty 10.00
Sell Price 641.70
Sell Qty 64.00

Quess Corp Ltd. (QUESS) - Chairman Speech

Company chairman speech

Dear Shareholders

I am delighted to share the excitement we feel at Quess as we build an enduringinstitution. This year we have faced a new set of challenges added more capabilities andbuilt more relationships; also becoming India's largest domestic private sector employeralong the way. With a new and refreshing spirit and a ‘can-do' attitude we are setto navigate the post Covid-19 world with our values and our purpose as our guidinglights.

At Quess we focus on driving productivity for our clients by outsourcing andoptimizing their non-core activities and we remain steadfast in our endeavour to providemore value to our clients. This has led to the formation of India's largest businessservices platform that offers a mix of workforce product and platform solutions.

Our ikigai our purpose remains that of improving productivity for clients.Over the years; we have identified several inefficient processes that are non-core tobusinesses across HR Training Facilities Maintenance IT services Security ComplianceSales & Marketing etc. and built value adding services around them. Our ability tosatisfy 2600+ clients daily train 57000 candidates annually maintain 258 million sq.ft. of facilities while managing 65 million resumes stand testament to our success.

The world is changing as employer preferences morph job stints become shorter andcareer preferences remain in flux. An average employee today has pivoted 5-6 times inhis/her career posing a challenge to the efficiency of the Human Resources team. With 560million users and a 50% internet penetration rate India is the second largest onlinemarket in the world. The rate of internet adoption tech innovations & changing careerpreferences have led to the creation of diverse employment opportunities like the grey& orange collared workforce behind the tech platforms. Formalisation of jobs havemorphed social contracts and protection of employee benefits have become a priority forpolicymakers. Wage growth stagnation in comparison to economic development have madeworkers scramble for their livelihood. While we have partnered with our clients inproviding Workforce management Operating Asset management & Technology solutions wealso understand the opportunity for outcome-based service delivery models.

Our ability to provide services according to our clients' needs are reiterated in ourlong-standing client relationships and in the addition of 600 new clients this year. Ourbusiness model is unique and largely non-replicable now as we sustain #1 and #2 positionsin most of our businesses in India and an unparalleled presence across South East AsiaUS Canada and the Middle East. With 15 bots & 90 apps delivering automated businessprocesses and with 70+ Acts & 1000+ minimum wage codes under our digital compliancetool and 61+ copyrighted training courses we have a comprehensive suite of outsourcedprocesses that is difficult to replicate.

Our unrelented focus on being agile to client requirements retaining theentrepreneurial gene and simultaneously diversifying our service offerings to become anall-weather business has helped us stay young while growing. Our Workforce Managementplatform has the capability to onboard 20000+ headcount a month to meet clientrequirements.

By being in the flow and taking advantage of growing opportunities we have alwaysleveraged our deep domain expertise and built scale. With operations spanning across 10+countries divided across 3 platforms and employing over 384000 people as on 31 March2020 this year we focused on consolidating our brand architecture and operatingstructure. Previously stakeholders who lacked a clear picture of the numerous brandsoperating under Quess can now be free of any ambiguity as we have consolidated ourplatforms into three broad categories- Work Force Management (WFM) Operating AssetManagement (OAM) and Global Technology Solutions (GTS). Further to simplify our internalorganizational structure we have appointed Presidents for each platform. This has helpedus retain our entrepreneurial spirit and create a clear demarcation of roles withequitable distribution of responsibilities.

Highlights for the year

During the year under review we registered a 29% growth in overall revenue andmaintained healthy growth across all platforms.

Guruprasad Srinivasan a founding leader at Quess has led our India Operations fromthe front. We increased use of technology in all our processes that enabled us toconsiderably reduce cost while increasing operational efficiency.

Our General Staffing business led by Lohit Bhatia continued to grow at a sustained rateof 56% YoY.

Our Facilities Management business was focused on acquiring more direct andcomprehensive contracts this year which improved our EBITDA margins from 8.6% to 10.1% inFY'20 and resulted in a revenue growth of 10% YoY.

The revenue of the Global Technology Solutions platform under Pinaki Kar grew by 17%YoY along with growth in EBITDA of 137% YoY. The growth was mainly on account ofacquisition of Allsec Technologies and expansion of offerings in the BPM segment withdeepened service lines for digitization and analytics.

One of our biggest achievements during the year was improvement of operating cash flow.Subramanian Ramakrishnan our new CFO has led the path by significantly reducing our debtlevels in the second half of FY'20. It not only validates our resilience amidst toughtimes it also points to our strategic abilities to successfully manage cash and debtlevels despite numerous challenges and an economic slowdown.

At Quess we love contributing to society impacting lives and being a Great Place toWork (GPTW). With an aim of giving back to society and ensuring upliftment of the weakersections we extend our support for better education and health to the needy schools inKarnataka.

Our CSR activities are undertaken through Careworks Foundation (CWF) which was formedin 2014. CWF aims to bring about a positive change in society and impact young minds inthe areas of health and education. As of 31 March 2020 we have covered 73 governmentschools impacting lives of 13800 children through our flagship School EnhancementProgramme. Further under our Careworks initiative during the Covid-19 lockdown we haveserved 80000 meals to the marginalised by leveraging Quess' food services business.

In FY'20 Quess has been certified as a 'Great Place to Work' by Great Place to WorkInstitute. The certification is recognized globally by employees and employers alike andis considered the 'Gold Standard' in identifying and recognizing great workplace culturethrough a rigorous and objective methodology. It also stands testimony to our robust andimpressive work culture. To keep our flag flying higher we have also formed the GPTW corecommittee to focus on all key HR initiatives and together we can make Quess a 'GreaterPlace To Work' in the days to come.

Despite continuous challenges in our key market in India especially in the lastquarter of FY'20 when we were impacted by the Covid-19 pandemic we remained steadfast andresilient. In the face of adversity we found time to sharpen our axe realign and restartour businesses.

As we enter FY'21 we will continue to focus on long-term and sustainable growth.Before the Initial Public Offering [IPO) our Return on Equity (RoE) was around 25% andafter IPO and multiple acquisitions over the years our RoE stands at 10.5% on 31 March2020. However we are constantly working towards delivering a sustainable year on yearcashflow growth of 20% and achieving a 20% RoE through sound capital allocationdisinvestment of non-performing assets and providing value added services to clients. Weare also progressively working towards improving the profitability of all our companies byimplementing prudent cost control mechanisms reducing Selling General and Administrative(SG&A) expenses & finance costs and adoption of new tax rates.

We will continue our institutionbuilding efforts by being the preferred firm foremployees & customers alike offering predictable returns to investors contributingtowards the well-being of the society and being future-ready. And we will continue ouradherence to the highest standards of integrity & governance to successfully retaintrust of our stakeholders and be true to our 'ikigai'.

I would like to thank our amazing management team our entrepreneurial people and ourpatient investors for this year of growth. I welcome Suraj to our team as the new GroupCEO as he weaves a new winning spirit and a refreshed purpose across the group.

As we continue to map our growth trajectory we remain steadfast to positively impactand touch the lives of many through the businesses we do at Quess!

Regards

Ajit Isaac

Chairman & Managing Director

.