Quess Corp Limited — Earnings Release 2021

Jun 3, 2021

June 3, 2021

The General Manager Department of Corporate Services, BSE Limited Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Security Code- 539978

The Manager Listing Department, National Stock Exchange of India Limited "Exchange Plaza", Bandra-Kurla Complex, Bandra (East), Mumbai-400051 NSE Symbol- QUESS

Dear Sir / Madam,

Sub: Press Release

We are enclosing herewith copy of Press Release dated June 3, 2021 titled "A strong exit to an unprecedented year".

Kindly take the same on record.

Thanking You,

Yours sincerely, For Quess Corp Limited

Kundan K Lal Company Secretary & Compliance Officer

Encl. a/a

BSE: 539978 I NSE: QUESS I ISIN: INE615P01015 I CIN: L74140KA2007PLC043909 I WWW.QUESSCORP.COM

A strong exit to an unprecedented year

Bengaluru, India. 03rd June 2021. Quess Corp, India's leading business services provider announced its financial results for the fourth quarter and year ended 31 st March 2021 today.

Key highlights:

• H2'21 top line growth and improved efficiencies drove strong operating results
• Significant improvements in cash generation, with OCF of ₹ 587cr versus ₹ 234cr in FY'20
• Net cash position of ₹ 99cr versus a net debt position of ₹ 355cr in FY'20
• Announced first-ever dividend at ₹ 7 per share, ~33% of FCF to be returned to shareholders over 3 years as per new dividend policy

The key consolidated financial parameters are:

Particulars ( in ₹ cr)	Q4 FY21	Q4 FY20	Q3 FY21	YoY	QoQ	FY21	FY20	YoY
Revenue from operations	3,005	2,995	2,808	0%	7%	10,837	10,991	(1%)
EBITDA	38	169	151	(78%)	(75%)	458	658	(30%)
EBITDA margin	1.26%	5.63%	5.37%	-437 bps	-411 bps	4.23%	5.98%	-176 bps
Profit Before Tax	(31)	(594)	80	95%	(139%)	185	(384)	148%
PBT margin	-1.04%	-19.85%	2.85%	1881 bps	-389 bps	1.70%	-3.50%	520 bps
Profit After Tax	(58)	(630)	46	91%	(228%)	74	(432)	117%
PAT margin	-1.94%	-21.04%	1.62%	1910 bps	-356 bps	0.68%	-3.93%	461 bps

Financial Highlights

• Resurgence of growth in H2'21 made up for decline in Q1'21; Revenue closed flat for the year over FY'20
• Q4'21 EBITDA down 78% YoY. Includes provision of ₹ 119cr towards legacy government business. Lockdown-related losses in Q4'21 from Training and Skill Development and Food businesses amounted to ₹ 20 cr versus Q4'20. Adjusted for this, EBITDA would be up 5% YoY.
• Reported PAT for FY'21 at ₹ 74cr from ₹ -432cr; one-time charge on account of Goodwill DTL creation amounting to ₹ 52cr due to change in tax law
• OCF grew 151% YoY to ₹ 587cr in FY'21 from ₹ 234cr in FY'20
• OCF / Normalised Operating EBITDA at 131% in FY'21 against 44% in FY'20
• Gross Debt reduced to ₹ 516cr from ₹ 1,147cr on the back of cash management, improved collections, and income tax refunds

Other highlights

• Workforce Management: GS headcount almost back to pre-COVID levels of 240k in H2'21 against 203k in H1'21. Domestic IT Staffing saw EBITDA grow 54% in FY'21. Training and Skill Development break even in Q4'21 although operating at 50% due to lockdown restrictions.
• Global Technology Solutions: Emerged as largest EBITDA contributing platform in H2'21, revenue / FTE was 3.5% higher YoY in Q4'21. Pivot towards platform and non-voice business continues.
• Operating Asset Management: Q4'21 revenues 9% higher QoQ, driven by customer acquisitions. Industrials returning to growth, with Q4'21 revenues 11% higher QoQ. IFM and Security Services continue to be impacted by WFH in IT/ITES & education sectors which contributed to 49% of pre-COVID revenues.
• Emerging Business: Monster India showing green shoots with stronger sales, better product performance, and improved P&L

Commenting on the results, MD & Group CEO Mr. Suraj Moraje said*, "In a year that has been challenging indeed, Quess has been at the forefront of society's war against COVID, even while emerging as an operationally fitter, financially stronger, and more technology-intense organization. On the back of this, it has been a pleasure to reward our shareholders with our first ever dividend payout in line with our new dividend policy. We will continue to innovate our offerings and put our best foot forward, while remaining committed to our twin goals of 20% ROE by FY23 and 20% Y-o-Y OCF CAGR."*

About Quess Corp

Established in Bengaluru in 2007, Quess Corp Limited (BSE: 539978, NSE: QUESS) is India's leading business services provider - that leverages its extensive domain knowledge and future-ready digital platforms to drive client productivity through outsourced solutions.

Quess provides a host of technology enabled staffing and managed outsourcing services across processes such as sales & marketing, customer care, after sales service, back office operations, manufacturing, facilities and security management, HR & F&A operations, IT & mobility services etc. Quess has a team of ~363,000 employees, serving ~3000 clients across India, North America, APAC and the Middle East as on 31st March 2021.

For further details on Quess Corp Ltd., please visit: http://www.quesscorp.com

For more information, please contact:

Investor / Analyst contact: Media Contact: Ravi Vishwanath Chief Financial Officer ravi.vishwanath@quesscorp.com +91 80 61056208

Rekha Sahay Ghosh Head – Marketing & Communications rekha.sahay@quesscorp.com +91 80 61056019

Disclaimer: This document contains statements that constitute forward-looking statements. These statements include descriptions regarding the intent, belief or current expectations of the Company or its directors and officers with respect to the results of operations and financial condition of the Company. These statements can be recognized by the use of words such as ''expects", "plans", 'will", "estimates", "projects", or other words of similar meaning. Such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and actual results may differ materially from those in such forward-looking statements as a result of various factors and assumptions, which the Company believes to be reasonable in light of its operating experience in recent years. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties, regarding fluctuations in earnings, our ability to manage growth, competition, our ability to manage our international operations, government policies, regulations, etc. The Company does not undertake any obligation to revise or update any forward looking statement that may be made from time to time by or on behalf of the Company including to reflect actual results, changes in assumptions or changes in factors affecting these statements