Quess Corp Limited — Earnings Release 2023

Aug 11, 2022

auess WINNING TOGETHER

August 11, 2022

BSE Limited

Floor 25, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001 Security Code- 539978

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 August 11, 2022 titled "Quess Corp Ql PAT up 52% YoY, highest headcount addition of 32.6k recorded in the quarter".

Kindly take the same on record.

Thanking You,

Yours sincerely,

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For Quess Corp Limite

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Company Secretary & Compliance Officer

Encl. a/a

Quess Corp Limited

Quess House, 3[/] 3[/] 2, Bellandur Gate, Sarjapur Road, Bengaluru-560103, Karnataka, India Tel: +91806105 6001 I connect@quesscorp.com I CIN No.L74140KA2007PLC043909 www.quesscorp.com

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

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Quess Corp Q1 PAT up 52% YoY, highest headcount addition of 32.6k recorded in the quarter

11[th] August, 2022 Bangalore- 560103

Quess Corp, India’s leading business services provider announced its Q1 FY23 financial results today.

Financial Highlights

• Q1 FY23 revenue up by 33% YoY driven by General Staffing (up 34%), QITS (up 33%), and ConneQt (up 33%)

• EBITDA from operations for Q1 FY23 is up 4% YoY to ₹153 cr. EBITDA margin has declined due to:

• Increased cash burn in Product Led Business

• Increase in SG&A / Revenue from 5.2% to 5.6% due to higher salary cost, annual increments and Increased spend on technology

• IFM EBITDA margin declined by ~220 bps YoY, due to contract re-negotiation with a major customer

• YoY PAT is up by 52 %

• Q1 FY23 OCF / Operating EBITDA conversion is at 56%

The key consolidated financial parameters are:

Particulars( in ₹ cr)	Q1 FY23	Q1 FY22	Q4 FY22	YoY	QoQ
Revenue from operations	3,979	2,987	3,792	33%	5%
Reported EBITDA	153	147	185	4%	-17%
Reported EBITDA Margin	3.85%	4.92%	4.87%	-106bps	-102bps
Profit before tax	79	80	104	-1%	-24%
PBT Margin	1.99%	2.69%	2.73%	-69bps	-74bps
Profit after tax	68	45	77	52%	-12%
PAT margin	1.70%	1.49%	2.02%	21bps	-32bps

Q1 FY23 Business highlights

 Workforce Management:

• Total headcount for the vertical crossed 350k, an increase of 31% YoY, with more than 100 new logos addition

• General Staffing headcount crossed >300k. Revenue is up by 34% YoY and 6% QoQ

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• IT Staffing revenue is up 33% YoY

 Global Technology Solutions:

• CLM revenues up by 33% YoY. Non-voice CLM grew by 10%

• Continued focus on customer acquisition with 31 new logos added during Q1 FY23

• Non-CLM BPO: Collection business revenues up 35% YoY

• Platform based services: Payslips processed per quarter up 18% YoY on the back of 18 new logos won

 Operating Asset Management:

• IFM: Revenues up by 25% YoY. 23 new logos added in the quarter.

• Terrier Security: Revenue up 29% on YoY basis on the back of strong head count addition (up 27% YoY) and 15 new logos added in the quarter

 Product Led Business:

• Monster: Active user base (6 months) grew 17% QoQ to 17.1 million; User Acquisition & Reactivation crossed 2 million in the quarter.

• Highest ever C-SAT at 95% while NPS grew by 71% QoQ to 24.

• Qjobs platform: Crossed 4.9 million+ candidates and 3 million+ active job openings in Q1’23

• WorQ: 255K + Monthly Active Users & 100K + Daily Active Users (DAU)

• DASH : Expanded user base to 420K with 150K + Monthly Active Users

Commenting on the results, ED & Group CEO Mr. Guruprasad Srinivasan said , “We are delighted to report our highest ever headcount addition of 32.6k in a quarter along with a PAT growth of 52% YoY, reaffirming our execution capability. All our large businesses have continued to demonstrate exceptional growth, driving our consolidated revenues up by 33% YoY and 5% QoQ. As we get into the festive season, usually the largest hiring season in India, we continue to invest in technology and have strengthened our business teams to take advantage of this opportunity. We are confident these investments will help gain market share and take our ROE to 20%.”

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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 ~470,000 employees, serving ~3000 clients across India, North America, APAC and the Middle East as on June 30, 2022.

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 Rekha Sahay Ghosh Chief Financial Officer Head – Marketing & Communications  investor@quesscorp.com rekha.sahay@quesscorp.com  +91 080 6888 1088

Girish Kumar Sharma

DGM Investor Relations

 girish.sharma@quesscorp.com

 +91 99372 98879

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

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