Quess Corp Limited — Earnings Release 2021

Jan 27, 2021

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auess
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WINNING TOGETHER
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January 27, 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, Sandra (East), Mumbai-400051 NSE Symbol- QUESS

Dear Sir / Madam,

Sub: Press Release

We are enclosing herewith copy of Press Release dated January 27, 2021 titled "A return to growth, with steady PBT and rapid debt reduction".

Kindly take the same on record.

Thanking You,

Yours sincerely, For Quess Corp Limited 0JKund}Zi Company Secretary & Compliance Officer

Encl. a/a

Quess Corp Limited

Quess House, 3[/] 3[/] 2, Bellandur Gate, Sarjapur Road, Bengaluru-560103, Karnataka, India Tel: +91 80 6105 6001 I connect@quesscorp.com I CIN No.L74140KA2007PLC043909

www.quesscorp.com

27[th] January 2021 Bengaluru

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

A return to growth, with steady PBT and rapid debt reduction

Quess Corp, India’s leading business services provider announced its financial results for the third quarter ended 31[st] December 2020 today.

Key highlights:

• Revenue and EBITDA grew 7% and 8% respectively QoQ

• PBT steady versus a year ago, conversion up at 53% vs 45% a year ago

• Transformed to a Net Cash position of ₹ 26cr from a net debt position of ₹ 355cr in Q4’20

• OCF / EBITDA at 80% vs 51% in Q3’20

The key consolidated financial parameters are:

(in ₹ cr)

					(in ₹	cr)
	Quarter ended
Particulars(in ₹ cr )	Q3 FY21	Q3 FY20	Q2 FY21		YoY	QoQ
Revenue from operations	2,808	2,950	2,615		-5%	7%
EBITDA	151	179	140		-16%	8%
EBITDA margin	5.37%	6.08%	5.34%		-71 bps	3 bps
Profit Before Tax	80	80	82		0%	-2%
PBT margin	2.85%	2.71%	3.12%		14 bps	-27 bps
Profit After Tax	46	75	50		-39%	-9%
PAT margin	1.62%	2.54%	1.91%		-91 bps	-29 bps

Financial Highlights

• Revenue up 7% QoQ driven by General Staffing (up 9%) and Conneqt (up 12%)

• EBITDA grew 8% QoQ from ₹ 140cr to ₹ 151cr; down 16% YoY owing to lockdown-related impact of ₹ -29cr from Excelus and IFM food businesses

• PBT conversion at 53% vs. 45% in Q3’20, resulting in PBT flat YoY at ₹ 80cr

• PAT down 39% YoY, despite flat PBT, on account of higher ETR

• Rapid gross debt reduction continued, from ₹ 1,147cr in Q4’20 to ₹ 521cr in Q3 ’21 (reduction of ₹ 103cr in the quarter)

• Company achieved a Net Cash position of ₹ 26cr from a Net Debt position of ₹ 45cr in Q2’21 and ₹ 355cr in Q4’20

• OCF / EBITDA at 80% vs. 51% in Q3’20

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Other highlights

• General Staffing business is India’s first to be featured in top 50 of SIA’s prestigious Largest Global Staffing Firms 2020 list

• Quess enters digital gig economy through investment in task-based services business Taskmo

• Quess re-affirmed as Great Place to Work with bettered and above-industry average score

Commenting on the results, CEO & ED Mr. Suraj Moraje said , “I am delighted that Quess Corp is again on the growth path, even while our focus on cash generation and debt repayment has brought our company to a net cash position in the last quarter. I am gratified that our employees have reaffirmed our status as a Great Place to Work, a testament to our vibrant and purpose led culture. Our eyes remain firmly set on our north star of achieving and sustaining a 20% ROE”

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About Quess Corp

Quess Corp Limited (BSE: 539978, NSE: QUESS), is India’s leading business services provider. At Quess, we excel in helping large and emerging companies manage their non-core activities by leveraging our integrated service offerings across industries and geographies which provides significant operational efficiencies to our clients. Quess has a team of over ~333,000 employees across India, North America, South America, South East Asia and the Middle East across platforms such as Workforce Management, Global Technology Services and Operating Asset Management. Quess serves over 3,000 clients worldwide. Established in 2007, Quess is headquartered in Bengaluru, India and has a market cap of approx. ₹ 8,071cr as of December 31[st] , 2020.

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

For more information, please contact:

Investor / Analyst contact: Media Contact:

Subramanian Ramakrishnan

Girish H.M

Chief Financial Officer Vice President – Marketing & Communications ramki@quesscorp.com girish.m@quesscorp.com  +91 80 61056208  +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 yea₹ The risks and uncertainties relating to these statements include, but 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

W W W . Q U E S S C O R P . C O M

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