Quess Corp Ltd

- Quess Corp is investing in verticalization across sectors to strengthen leadership and sales, particularly around the demerger process (Page 17). - Investments include hiring additional recruiters and building capabilities for specialized verticals such as manufacturing, consumer retail, and IT staffing (Page 17, 12). - The company is also investing in sourcing engines and internal processes to improve recruitment speed and quality (Page 14, 8). - Specific investments are being made to strengthen platforms like Foundit, with enhancements such as Foundit 2.0 and back-office capabilities gearing up for launch (Page 12). - Quess is building towers focused on vertical growth by segment, which entails investments in infrastructure and resources (Page 8). - Overall, investments focus on long-term strategic growth through sector-specific verticalization, technology enhancements, and improving sales/customer retention ahead of and post-demerger (Pages 7,17).

- Overall revenue growth of 9% year-on-year and 4% quarter-on-quarter reported in Q2, showing steady performance. - Workforce Management (WFM) headcount grew by 13% year-on-year, with 15,000 associates added in Q2; ongoing verticalization and investments expected to drive future growth. - Manufacturing staffing has strong growth potential, with plans to increase associates from 70,000 to over 200,000 in coming years. - IT staffing growing with a focus on GCC clients, contributing about 68-74% of new mandates, with niche segments showing higher margins. - Global Technology Solutions showing robust growth (7% YoY), driven by customer lifecycle management and voice services. - Operating Asset Management growing at 9% YoY with new customer additions and expansion in telecom infrastructure and F&B segments. - Product-led business (foundit) growing at 11% YoY, with expectations to break-even by Q4 after reducing cash burn. - Anticipated pickup in demand from manufacturing mandates in Q3 and steady growth in GTS and OAM segments expected through Q3 and Q4.

- Quess Corp achieved a 16% year-on-year EBITDA growth in Q2 FY25, with a 23 bps margin expansion, reflecting operational efficiency and reduced cash burn in the platform business. - The Workforce Management (WFM) segment aims for a medium-term EBITDA margin target of 2.6-2.65%, progressing toward a long-term goal of 3%. - Foundit platform expects to break even by Q4 FY25 with reducing quarterly cash burn; revenue growth was 11% YoY. - Global Technology Solutions (GTS) is growing at high single digits with a stable EBITDA margin (~17.5%) and a strong order book. - Operating Asset Management (OAM) shows healthy 9% YoY revenue growth with plans to improve margins through investments. - Overall, management is confident of sustained earnings growth driven by verticalization strategies, international recovery, and operational efficiencies, projecting improved profitability and EPS progression. - Net cash position and debt reduction further support financial stability to back growth initiatives.

- At the end of Q2, the Workforce Management (WFM) platform has an open mandate (order book) of about 22,000, largely from manufacturing, telecom, and BFSI segments. - The IT staffing open mandate and open book is about 1,500, with monthly onboards at around 500, making the open book nearly three times the monthly onboards. - Global Technology Solutions (GTS) platform secured an order book of about INR 117 crores in Q2, with Annual Contract Value (ACV) adding 53 new customers. - The Operating Asset Management (OAM) platform added 48 new customers resulting in ACV of INR 44 crores in Q2. - Foundit platform is seeing a growing order book with positive feedback on Foundit 2.0 and increasing job postings and active users, signaling good growth prospects. - Overall order books appear healthy, supporting positive near-term growth expectations across platforms.

- As of H1 FY25, Quess Corp has a gross debt of INR 253 crores, having repaid INR 117 crores during the half year. - The company holds a net cash position of INR 334 crores, showing an improvement of 142% year-on-year. - There is no mention in the document of any current or planned new fundraising through debt or equity. - The management emphasizes continued focus on optimizing capital structure and debt reduction. - They seem confident in their current financial standing, with strong operating cash flow at 86% conversion to EBITDA. - No explicit guidance or announcement about future fundraising activities was made during the call.