Quess Corp Ltd Concall was today at 12:00 PM.
Here are highlights of the Conference Call π
@drprashantmish6 @amitmantri @safiranand
Here are highlights of the Conference Call π
@drprashantmish6 @amitmantri @safiranand
Business Updates:
β’ 90-180 days economy was closed.
β’ Headcount was 384000, and reached to 314000 and in Q1 reached to 324000. Headcount now remaining stable.
β’ Vedang is still partially closed
β’ Improvement of business from the month of july and september
β’ 90-180 days economy was closed.
β’ Headcount was 384000, and reached to 314000 and in Q1 reached to 324000. Headcount now remaining stable.
β’ Vedang is still partially closed
β’ Improvement of business from the month of july and september
Cost Reduction: 70 crores of cost has been reduced to 53 crores which will be permanent saving of 17 crores unless increase in sudden cost
Debt Reduction:
Debt reduction 1147 cr and now the gross debt level is 624 crore.
Net debt reduced from 254 to 45 crores debt on qoq basis
Debt Reduction:
Debt reduction 1147 cr and now the gross debt level is 624 crore.
Net debt reduced from 254 to 45 crores debt on qoq basis
Overall Customer: None of the business loss major customer. 195 customer in Q2 and 395 customer in H1. Management expect the customer to be sustained and the customer acquisition decreased a bit.
β’ Cross sell activities: 28% increase in re-generation rate.
β’ Cross sell activities: 28% increase in re-generation rate.
Technology: Sourcing the employees and matching them with employers are being automated. In the beta version, in just 6 weeks, there were 155000 downloads just by Word of mouth
β’ Employee will have additional payment for festive season.
β’ Employee will have additional payment for festive season.
New platform:
A platform has been created for loans, deals on 2 wheeler like services for the companies employees. The platform has 30+ vendors with 1.4 lack employees vising the platform.
A platform has been created for loans, deals on 2 wheeler like services for the companies employees. The platform has 30+ vendors with 1.4 lack employees vising the platform.
General staffing:
β’ General staff was up about 5%. Headcount was down by 3.8%. Retail was down about 12%.
β’ Revenue share- mentioned in image.
β’ Updates: Business has seen good growth due to festive season
β’ General staff was up about 5%. Headcount was down by 3.8%. Retail was down about 12%.
β’ Revenue share- mentioned in image.
β’ Updates: Business has seen good growth due to festive season
General Staffing: The shops are currently using their existing staff even at the times of festive season. When the shop owners get the confidence that this week will be better than last week then the shop owners will hire new staff for the festive season.
IT staffing: 10% HC reduction. Improve trajectory in domestic region.
Training and skill development: Affect due to lockdown. Revenue was down about 18%.
Training and skill development: Affect due to lockdown. Revenue was down about 18%.
OAM (Operating Asset Management)
1 Housekeeping front- Performance was flat.
β’ COVID related reduction in IT's and education.
β’ 17 new logos acquired in this quarter of which 5 were integrated offerings
2 Terrier Security revenue dropped 26%
Number from IP in image
1 Housekeeping front- Performance was flat.
β’ COVID related reduction in IT's and education.
β’ 17 new logos acquired in this quarter of which 5 were integrated offerings
2 Terrier Security revenue dropped 26%
Number from IP in image
β’ Monster traffic improved by 60%. Job posting increase by 69% in quarter.
β’ Digicare business has grew well. Expects to have better Q3 than Q2. Key for us to manage the covid period.
β’ Digicare business has grew well. Expects to have better Q3 than Q2. Key for us to manage the covid period.
IDC reduction will be reinvested in the technology product. Hence last year EBITA margin will be best to take as base, rather than this year EBIDTA margin
Sector exposure in GS:
β’ E-commerce logistics has seen good growth. IT and IT's has seen good growth.
β’ Industries Segment has seen much more traction, which was more beneficial.
β’ Retail has seen good growth. Growth is more from retail and semi-urban. Urban has seen degrowth.
β’ E-commerce logistics has seen good growth. IT and IT's has seen good growth.
β’ Industries Segment has seen much more traction, which was more beneficial.
β’ Retail has seen good growth. Growth is more from retail and semi-urban. Urban has seen degrowth.
β’ BFSI segment in this quarter has seen good traction and is expected to grow more in subsequent quarter. 80 new customer is open in GSM
β’ WSM margins expect to pre-covid levels: Mid of November center are going to open. Hence till Q4 EBIT margin should come to pre-covid levels
β’ WSM margins expect to pre-covid levels: Mid of November center are going to open. Hence till Q4 EBIT margin should come to pre-covid levels
ROCE level: Either through EBIT margins, which are expected to remains stable in next quarters.
β’ Reducing the loss making business. Like loss in monster has been reduced and is expected to deliver the good growth.
β’ Controlling the denominator through thought on dividend
β’ Reducing the loss making business. Like loss in monster has been reduced and is expected to deliver the good growth.
β’ Controlling the denominator through thought on dividend
EDITDA:
β’ Planning to reduce some of the segments where the profitability is not good
β’ Company focuses on managing intangible and deprecation, in order to manage the capex better
β’ Company will be very careful of raising any fresh capital.
β’ Planning to reduce some of the segments where the profitability is not good
β’ Company focuses on managing intangible and deprecation, in order to manage the capex better
β’ Company will be very careful of raising any fresh capital.
Food: Education institution starting up. Mgmt have to look out when students come back to colleges and will they be ready to eat in Dormitory
Digi Care: Traditionally brick and motor business. Focusing more on online business and to deliver more to B2C customer rather than B2B.
Digi Care: Traditionally brick and motor business. Focusing more on online business and to deliver more to B2C customer rather than B2B.
Decline in Margins:
β’ COVID delayed the payment
β’ EBIDTA per headcount has been increasing
β’ Festive season increased the sales this year. Buy EBIDTA will look better in H2.
β’ Improvement in business week after week since August. 2 out of 3 customers have seen improvement
β’ COVID delayed the payment
β’ EBIDTA per headcount has been increasing
β’ Festive season increased the sales this year. Buy EBIDTA will look better in H2.
β’ Improvement in business week after week since August. 2 out of 3 customers have seen improvement
β’ There hasn't been an uptick in realization as compared to last year in general staffing business.
β’ IT Staffing: Customer acquisition has been increasing leading to increase in revenue. While on the cost front the expense are expected to remain stable.
β’ IT Staffing: Customer acquisition has been increasing leading to increase in revenue. While on the cost front the expense are expected to remain stable.
β’ Management is working to ensure the new changes are been worked upon.
β’ External environment is changing what the management can do internally will help to meet those challenges,.
β’ Labor law changes which will help the company like Quess Corp.
β’ External environment is changing what the management can do internally will help to meet those challenges,.
β’ Labor law changes which will help the company like Quess Corp.
Conclusion:
β’ There has been permanent reduction of cost of around 17 crores.
β’ Many of the segments of business are eyeing for good revival after COVID.
β’ There may be the risk of change in customer consumption pattern which can affect the business segment. (due to COVID).
β’ There has been permanent reduction of cost of around 17 crores.
β’ Many of the segments of business are eyeing for good revival after COVID.
β’ There may be the risk of change in customer consumption pattern which can affect the business segment. (due to COVID).
β’ β’ β’
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