Motilal Oswal Financial Services

6 February 2024

Quess Corp

3QFY24 Results Update | Sector: Staffing

Quess Corp

Neutral

Estimate change

TP change

Rating change

Bloomberg

Equity Shares (m)

M.Cap.(INRb)/(USDb)

52-Week Range (INR)

1, 6, 12 Rel. Per (%)

12M Avg Val (INR M)

CMP: INR503

TP: INR560 (+11%)

Good margin performance on muted revenue growth

Maintain Neutral rating as we await recovery in WFM

QUESS IN



148

74.7 / 0.9

539 / 337

-1/7/15

193



Financials & Valuations (INR b)

Y/E Mar

2024E 2025E 2026E

Sales

192.3 222.7 262.8

EBITA Margin (%)

3.6

4.4

4.7

Adj. PAT

3.1

5.0

6.9

Adj. EPS (INR)

20.6

33.6

46.4

EPS Gr. (%)

79.4

63.5

38.0

BV/Sh. (INR)

234.1 260.3 302.3

Ratios

RoE (%)

11.8

17.9

21.7

RoCE (%)

13.3

18.5

21.9

Payout (%)

77.8

47.6

34.5

Dividend Yield (%)

3.2

Valuations

P/E (x)

24.5

15.0

10.8

P/BV (x)

2.1

1.9

1.7

EV/EBITDA (x)

11.0

7.7

5.8

EV/Sales (x)

0.4

0.3



Shareholding pattern (%)

As On

Promoter

DII

FII

Others



51.9

8.1

21.8

18.3

Dec-23 Sep-23 Dec-22

56.7

10.7

10.2

16.3

16.9

16.4

18.9

FII Includes depository receipts

QUESS delivered revenue growth of 8.4% YoY in 3QFY24, below our estimate

of 12.7% YoY. The headcount addition was strong at ~10k net, but lower

than ~22k net additions in 2Q. EBITDA margin at 3.7% (+40bp YoY) was

above our estimate, aided by a strong margin expansion in the GTM (+180bp

YoY) and PLB (+1040bp) businesses.

Revenue growth in 3Q was modest, due to weaker end demand and account

rationalization. Moreover, while its general staffing business continued to

add headcount (+13k QoQ), the tough 3QFY23 base resulted in slow YoY

growth in low teens. We expect growth to improve from FY25 onward as

GTS and OAM growth start normalizing after bottoming out in FY24E. We

estimate a revenue CAGR of 17.0% over FY24-26.

More importantly, QUESS delivered good EBITDA margin improvement, up

40bp YoY, aided by strong margin improvement in GTM and PLB. The

company delivered strong margin improvement despite persistent pressure

on the WFM vertical, which is facing margin headwind across the industry.

For the PLB and American operations, the management has reiterated its

guidance of achieving the EBITDA breakeven by 4QFY24.

We expect these investments to aid margins in FY25; hence, we raise our

margin estimates to account for better profitability. Accordingly, we expect a

PAT CAGR of 50% over FY24-26, on a low FY24 base (driven by 100bp PAT

margin improvement from 1.6% in FY24).

Though QUESS should benefit from medium-term tailwinds of formalization

and labor reforms, the growth has already been factored into the valuations.

We reiterate our Neutral

rating due to full valuations, taxation concerns,

and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.

Revenue grew 8.4% YoY, below our expectation of 12.7% YoY growth.

Workforce management grew 11.8% YoY. Operating asset management

grew 0.8% YoY and GTS grew by 4.9% YoY. The product-led business was

weak, down 12.7% YoY.

EBITDA margin was up 40bp YoY at 3.7%, 10bp above our estimate of 3.6%.

GTS EBITTDA margin expanded 220bp YoY, while WFM margin was down

20bp YoY.

Adj. PAT increased by 142.7% YoY to INR838m vs. our estimate of INR863m,

largely due to lower other income (net).

Reported PAT at INR639m was down 27.4% YoY due to a one-off expense of

INR199m, attributed to impairment related to goodwill and other assets.

QUESS overall added strong 10k in headcount and added 14k workforce to

its workforce management business.

The board has approved an interim dividend of INR4 per share.

Miss on revenues, strong execution on margins



Mukul Garg – Research analyst

(Mukul.Garg@MotilalOswal.com)

Pritesh Thakkar – Research analyst

(Pritesh.Thakkar@MotilalOswal.com)

Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.

Investors are advised to refer through important disclosures made at the last page of the Research Report.

Quess Corp

Key highlights from the management commentary



The environment was positive in industrial, BFSI, retail, and telecom, whereas e-

commerce and FMCG saw a net headcount decline that was attributed to the

festival season concluded in 3Q.

General Staffing Business added 13k headcount in 3Q, led by the manufacturing,

telecom and BFSI sectors. The vertical focus strategy has continued to

incentivize excellent growth; manufacturing and BFSI grew 8% each QoQ.

The Indian IT staffing and collection business remains impacted by global

headwinds. Focus continues to be on niche profiles, GPC, BFSI, and digital, and

on maximizing the market penetration in strategic focus areas.

The improvement in EBITDA margin was driven by three elements: (1) Spending

reduction in marketing product development; (2) Growth in profitability in TTS

vertical and improved margins due to Business mix in OEM vertical; (3) Volume

growth and rigorous cost-control measures.

Valuation and View: reiterate NEUTRAL



Though QUESS should benefit from medium-term tailwinds of formalization and

labor reforms, the growth has already been factored into the valuations.

We expect a gradual recovery in margins over FY25 and FY26, which should

support earnings.

We reiterate our Neutral rating on the stock due to full valuations, taxation

concerns, and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.

(INR m)

Consolidated quarterly performance

Y/E March

Net Sales

YoY Change (%)

Total Expenditure

EBITDA

Margin (%)

Depreciation

EBIT

Margin (%)

Interest

Other Income

PBT before EO expense

Recurring Tax

Rate (%)

MI and P/L of Asso. Cos.

Adjusted PAT

Extraordinary items

Reported PAT

YoY Change (%)

Margin (%)

FY23

FY24

4QE

FY23

1,71,584

25.3

1,65,726

5,858

3.4

2,746

3,112

1.8

1,066

263

2,309

615

26.6

-16

1,710

-535

2,245

-6.9

1.3

FY24E

FY24

Var.

3QE (%/bp)

39,793 42,733 44,656 44,402 46,002 47,483 48,418 50,391

33.2

32.4

21.2

17.1

15.6

11.1

8.4

13.5

38,259 41,386 43,200 42,882 44,463 45,848 46,608 48,400

1,534 1,347 1,456 1,520 1,539 1,635 1,810 1,990

3.9

3.2

3.3

3.4

3.3

3.4

3.7

3.9

610

676

695

765

686

697

718

688

924

671

761

756

853

939 1,092 1,303

2.3

1.6

1.7

1.9

2.0

2.3

2.6

204

263

290

309

272

281

354

342

151

236

792

496

538

483

621

809

790 1,197

115

100

217

183

140

-45

180

14.6

20.1

40.3

37.9

22.6

10.3

-5.7

15.0

-24

-31

-10

-2

613

421

345

331

478

735

838 1,017

-535

199

613

421

880

331

478

719

639 1,017

32.7

12.0

5.0

-55.0

-22.0

71.0

-27.4 207.1

1.5

1.0

2.0

0.7

1.0

1.5

1.3

2.0

1,92,295

50,316

-3.8

12.1

12.7

-425

1,85,320

48,505

-3.9

6,975

1,811

-0.1

3.6

13.9

2,788

682

5.2

4,186

1,129

-3.3

2.2

1,250

263

34.7

481

149

3,417

1,015

-22.2

358

152 -129.7

10.5

15.0

-9

3,068

863

-2.9

215

2,854

863

-25.9

27.1

-1.9 -2,545

1.5

1.7

-40

Source: Company, MOFSL

6 February 2024

Quess Corp

Key performance indicators

Y/E March

Headcount (k)

Segment Revenue (INR m)

Workforce Management

Operating Asset Management

Global Technology Solutions

Product-led business

EBITDA Margin (%)

Workforce Management

Operating Asset Management

Global Technology Solutions

Product Led business

470

27,579

5,967

5,074

1,174

3.4

5.1

16.3

(20.4)

FY23

504

29,428

6,515

5,287

1,502

2.7

4.3

16.0

(15.9)

505

30,683

6,891

5,607

1,474

2.8

4.5

16.1

(18.2)

511

30,618

6,843

5,710

1,231

2.8

4.4

16.7

(16.4)

525

32,206

6,899

5,633

1,264

2.6

4.5

17.8

(20.3)

FY24

547

33,153

7,055

5,843

1,433

2.6

5.0

17.8

(14.1)

557

34,302

6,950

5,880

1,287

2.6

5.2

18.3

(7.8)

4QE

511

35,823 1,18,309 1,35,484

7,151

26,216

28,055

6,053

21,678

23,408

1,364

5,381

5,348

2.7

5.3

18.3

(0.8)

2.9

2.6

4.6

5.0

16.3

18.1

(17.6)

(10.6)

Source: Company

FY23

FY24E

Key highlights from the management commentary

3QFY24 performance



Margin



The environment was positive in industrial, BFSI, retail, and telecom, whereas e-

commerce and FMCG saw a net headcount decline that was attributed to the

festival season concluded in 3Q.

General Staffing Business added 13k headcount in 3Q, led by the manufacturing,

telecom and BFSI sectors. The vertical focus strategy has continued to

incentivize excellent growth; manufacturing and BFSI grew 8% each on QoQ

basis. The momentum is expected to continue for the BFSI and manufacturing

segments. The management indicated that the pipeline remains healthy, which

will drive the headcount in the coming quarters.

The Indian IT staffing and collection business remains impacted by global

headwinds. Focus continues to be on niche profiles, GPC, BFSI and digital, and

on maximize the market penetration in strategic focus areas.

The platform business has demonstrated economic sustainability and positive

momentum toward higher value-added earnings. The business closed an order

book of over INR1,100mn EBITDA in 3Q, implying sustained revenue growth in

the coming quarters. BFSI accounted for 35% of total annual contract value

added. The company also saw encouraging green shoots in the auto, retail and

consumer goods sectors.

In the International CSM business, growth momentum is expected to continue in

4Q as well, leveraging further revenue realization from leading North American

customers. Additionally, the company is witnessing green shoots in healthcare,

manufacturing and infrastructure and will continue to focus on sales sector.

The improvement in EBITDA margin was driven by three elements: (1) Spending

reduction in marketing product development; (2) Growth in profitability in TTS

vertical and improved margins due to business mix in OEM vertical; (3) Volume

growth and rigorous cost-control measures.

The improvement in gross margin was attributed to improving operational

efficiencies and the mobilization of contracts won during H1FY24.

Cash management and debt repayment continued in 3Q. Gross debt declined by

INR530mn in 3Q to INR4,190mn, the lowest in the last 10 quarters.



6 February 2024

Quess Corp

Valuation and View: reiterate NEUTRAL



Though QUESS should benefit from medium-term tailwinds of formalization and

labor reforms, the growth has already been factored into the valuations.

We expect a gradual recovery in margins over FY25 and FY26, which should

support earnings.

We reiterate our Neutral rating on the stock due to full valuations, taxation

concerns, and weak macro. Our TP of INR560 implies P/E of 12x FY26E EPS.

Earlier estimates

FY24E

FY25E

1,96,217

2,29,213

14.4

16.8

7,030

9,856

3.6

4.3

2.2

3.0

21.0

35.2

Change (%/bp)

FY24E

FY25E

FY26E

-2.0%

-2.8%

-229bp

-99bp

10bp

-0.8%

-0.6%

1.6%

4bp

10bp

20bp

-1bp

0bp

20bp

-2.4%

-4.5%

4.0%

Source: Company, MOFSL

Exhibit 1: Revisions to our estimates

Revenue (INR m)

Revenue growth (%)

EBITDA (INR m)

EBITDA margin (%)

EBIT margin (%)

EPS (INR)

Revised estimates

FY24E

FY25E

FY26E

1,92,295

2,22,720

2,62,791

12.1

15.8

18.0

6,975

9,800

12,351

3.6

4.4

4.7

2.2

3.0

3.4

20.5

33.6

46.4

FY26E

2,70,224

17.9

12,160

4.5

3.2

44.6

6 February 2024

Quess Corp

Financials and valuation

Consolidated Income Statement

Y/E March

Total Income from Operations

Change (%)

Cost of services

Employees Cost

Other Expenses

Total Expenditure

As a percentage of Sales

EBITDAs

Margin (%)

Depreciation

EBIT

Int. and Finance Charges

Other Income

PBT bef. EO Exp.

EO Items

PBT after EO Exp.

Total Tax

Tax Rate (%)

Minority Interest

Adjusted PAT

Change (%)

Margin (%)

Consolidated Balance Sheet

Y/E March

Equity Share Capital

Total Reserves

Net Worth

Minority Interest

Total Loans

Deferred Tax Liabilities

Capital Employed

Gross Block

Less: Accum. Deprn.

Net Fixed Assets

Goodwill on Consolidation

Capital WIP

Total Investments

Curr. Assets, Loans, and Adv.

Inventory

Account Receivables

Cash and Bank Balance

Loans and Advances

Curr. Liability and Prov.

Account Payables

Other Current Liabilities

Provisions

Net Current Assets

Appl. of Funds

FY19

85,270

38.3

2,624

67,132

10,868

80,624

94.6

4,646

5.4

1,232

3,414

1,144

712

2,983

329

11.0

2,565

-17.2

3.0

FY19

1,461

25,795

27,256

7,502

-5,046

29,742

8,152

3,357

4,795

11,769

147

820

27,540

221

9,132

5,855

12,333

15,328

1,729

12,351

1,248

12,212

29,742

FY20

1,09,896

28.9

2,671

90,632

10,027

1,03,329

94.0

6,567

6.0

2,486

4,081

1,668

511

2,924

6,641

-3,717

483

-13.0

138

2,609

1.7

2.4

FY20

1,475

21,284

22,759

769

9,976

-6,166

27,339

9,295

5,843

3,451

8,358

725

34,439

284

9,982

7,587

16,586

19,681

1,633

16,494

1,554

14,759

27,339

FY21

1,08,370

-1.4

2,007

92,968

7,617

1,02,593

94.7

5,777

5.3

2,285

3,491

1,113

451

2,829

1,388

1,442

590

40.9

114

2,125

-18.5

2.0

FY21

1,477

21,954

23,431

939

4,514

-4,061

24,823

10,857

8,129

2,728

9,890

309

30,173

290

8,945

5,646

15,292

18,317

1,212

14,983

2,122

11,856

24,823

FY22

1,36,918

26.3

2,787

1,16,870

10,743

1,30,400

95.2

6,518

4.8

2,120

4,397

792

198

3,803

1,066

28.0

2,640

24.2

1.9

FY22

1,480

22,898

24,378

1,310

5,877

-3,983

27,582

13,806

10,249

3,557

10,096

153

35,904

275

23,323

4,105

8,201

22,145

1,154

18,258

2,733

13,759

27,582

FY23

1,71,584

25.3

4,794

1,46,595

14,336

1,65,726

96.6

5,858

3.4

2,746

3,112

1,066

263

2,309

-535

2,844

615

21.6

-16

1,710

-35.2

1.0

FY23

1,482

24,205

25,688

1,621

5,311

-5,275

27,343

16,160

12,995

3,165

10,427

181

41,429

282

26,886

4,376

9,886

27,876

1,249

23,546

3,080

13,554

27,343

FY24E

1,92,295

12.1

5,373

1,64,290

15,657

1,85,320

96.4

6,975

3.6

2,788

4,186

1,250

481

3,417

358

10.5

-9

3,068

79.4

1.6

FY24E

1,482

25,050

26,532

1,611

5,301

-5,275

28,169

18,360

15,687

2,673

10,427

200

48,911

282

34,244

3,815

10,571

34,059

4,570

25,930

3,559

14,853

28,169

FY25E

2,22,720

15.8

6,223

1,90,284

16,413

2,12,920

95.6

9,800

4.4

3,118

6,682

1,336

557

5,902

885

15.0

5,017

63.5

2.3

FY25E

1,482

28,023

29,505

1,611

5,293

-5,275

31,134

21,560

18,583

2,977

10,427

220

56,150

282

39,662

4,989

11,217

38,658

5,250

29,289

4,119

17,492

31,134

(INR m)

FY26E

2,62,791

18.0

7,343

2,24,520

18,577

2,50,440

95.3

12,351

4.7

3,416

8,935

1,445

657

8,147

1,222

15.0

6,925

38.0

2.6

(INR m)

FY26E

1,482

32,779

34,261

1,611

5,285

-5,275

35,882

24,760

21,999

2,761

10,427

240

67,325

282

46,798

8,177

12,068

44,888

6,175

33,855

4,858

22,437

35,882

6 February 2024

Quess Corp

Financials and valuation

Ratios

Y/E March

Basic (INR)

EPS

Cash EPS

BV/Share

DPS

Payout (%)

Valuation (x)

P/E

Cash P/E

P/BV

EV/Sales

EV/EBITDA

Dividend Yield (%)

FCF per share

Return Ratios (%)

RoE

RoCE

RoIC

Working Capital Ratios

Asset Turnover (x)

Debtor (Days)

Creditor (Days)

Leverage Ratio (x)

Net Debt/Equity ratio

FY19

17.5

25.9

240.5

0.0

28.7

19.4

2.1

0.9

16.2

0.0

7.2

9.9

10.6

12.9

2.9

0.0

FY20

18.3

35.7

200.8

0.0

27.6

14.1

2.5

0.7

11.3

0.0

21.3

10.4

15.4

22.0

4.0

0.1

FY21

14.9

30.8

206.7

7.0

135.7

33.8

16.3

2.4

0.7

12.3

1.4

45.7

9.2

7.7

10.9

4.4

-0.1

FY22

17.7

31.9

215.1

8.0

45.2

28.4

15.8

2.3

0.6

11.8

1.6

31.6

11.0

11.4

15.0

5.0

0.1

FY23

11.5

29.9

226.7

8.0

53.2

43.9

16.8

2.2

0.4

13.0

1.6

24.6

6.8

8.6

10.6

6.3

0.0

FY24E

20.6

39.2

234.1

16.0

77.8

24.5

12.8

2.1

0.4

11.0

3.2

16.0

11.8

13.3

16.0

6.8

0.1

FY25E

33.6

54.5

260.3

16.0

47.6

15.0

9.2

1.9

0.3

7.7

3.2

27.3

17.9

18.5

22.7

7.2

0.0

FY26E

46.4

69.3

302.3

16.0

34.5

10.8

7.3

1.7

0.3

5.8

3.2

40.2

21.7

21.9

28.5

7.3

-0.1

Consolidated Cash Flow Statement

Y/E March

OP/(Loss) before Tax

Depreciation

Interest and Finance Charges

Direct Taxes Paid

(Inc.)/Dec. in WC

CF from Operations

Others

CF from Operations incl. EO

(Inc.)/Dec. in FA

Free Cash Flow

(Pur.)/Sale of Investments

Others

CF from Investments

Issue of Shares

Inc./(Dec.) in Debt

Interest Paid

Dividend Paid

Others

CF from Fin. Activity

Inc./Dec. in Cash

Closing Balance

FY19

2,566

1,144

-1,750

-1,248

714

1,302

2,016

-957

1,058

-117

2,898

1,823

-74

-865

-2,706

-3,640

199

5,860

FY20

-4,319

2,486

1,668

-1,449

-1,933

-3,547

7,157

3,611

-570

3,041

732

-1,865

-1,703

478

2,197

-1,158

-144

-1,244

129

2,037

7,589

FY21

737

2,285

1,113

1,648

-464

5,319

1,835

7,154

-613

6,540

-144

-295

-1,052

-6,312

-737

-997

-8,045

-1,943

5,646

FY22

2,510

2,120

550

-869

-307

4,004

1,538

5,542

-833

4,709

-390

-653

-1,876

628

720

-553

-1,868

-3,842

-4,916

-1,250

4,105

FY23

2,229

2,746

1,066

-1,994

-231

3,816

846

4,663

-987

3,676

485

543

352

-567

-640

-1,855

-2,530

-5,239

-536

4,376

FY24E

3,741

2,692

848

-358

-1,859

5,064

-456

4,608

-2,220

2,388

-2,220

-9

-848

-2,388

-501

-3,756

-1,368

3,815

FY25E

6,397

2,895

794

-885

-1,466

7,735

-436

7,299

-3,220

4,079

-3,220

-9

-794

-2,388

-521

-3,712

367

4,989

(INR m)

FY26E

8,516

3,416

793

-1,222

-1,757

9,746

-524

9,222

-3,220

6,002

-3,220

-8

-793

-2,388

-433

-3,622

2,381

8,177

Investment in securities market are subject to market risks. Read all the related documents carefully before investing

6 February 2024

Quess Corp

Explanation of Investment Rating

Investment Rating

Expected return (over 12-month)

BUY

>=15%

SELL

< - 10%

NEUTRAL

< - 10 % to 15%

UNDER REVIEW

Rating may undergo a change

NOT RATED

We have forward looking estimates for the stock but we refrain from assigning recommendation

*In case the recommendation given by the Research Analyst is inconsistent with the investment rating legend for a continuous period of 30 days, the Research Analyst shall be

within following 30 days take appropriate measures to make the recommendation consistent with the investment rating legend.

Disclosures

The following Disclosures are being made in compliance with the SEBI Research Analyst Regulations 2014 (herein after referred to as the Regulations).

Motilal Oswal Financial Services Ltd. (MOFSL) is a SEBI Registered Research Analyst having registration no. INH000000412. MOFSL, the Research Entity (RE) as defined in the

Regulations, is engaged in the business of providing Stock broking services, Depository participant services & distribution of various financial products. MOFSL is a listed public

company, the details in respect of which are available on www.motilaloswal.com. MOFSL (erstwhile Motilal Oswal Securities Limited - MOSL) is registered with the Securities &

Exchange Board of India (SEBI) and is a registered Trading Member with National Stock Exchange of India Ltd. (NSE) and Bombay Stock Exchange Limited (BSE), Multi

Commodity Exchange of India Limited (MCX) and National Commodity & Derivatives Exchange Limited (NCDEX) for its stock broking activities & is Depository participant with

Central Depository Services Limited (CDSL) National Securities Depository Limited (NSDL),NERL, COMRIS and CCRL and is member of Association of Mutual Funds of India

(AMFI) for distribution of financial products and Insurance Regulatory & Development Authority of India (IRDA) as Corporate Agent for insurance products.

Details of associate

entities of Motilal Oswal Financial Services Limited are available on the website at

http://onlinereports.motilaloswal.com/Dormant/documents/List%20of%20Associate%20companies.pdf

MOFSL and its associate company(ies), their directors and Research Analyst and their relatives may; (a) from time to time, have a long or short position in, act as principal in, and

buy or sell the securities or derivatives thereof of companies mentioned herein. (b) be engaged in any other transaction involving such securities and earn brokerage or other

compensation or act as a market maker in the financial instruments of the company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies) or may have

any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on the

specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL even

though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

MOFSL and / or its affiliates do and seek to do business including investment banking with companies covered in its research reports. As a result, the recipients of this report

should be aware that MOFSL may have a potential conflict of interest that may affect the objectivity of this report. Compensation of Research Analysts is not based on any specific

merchant banking, investment banking or brokerage service transactions. Details of pending Enquiry Proceedings of Motilal Oswal Financial Services Limited are available on the

website at

https://galaxy.motilaloswal.com/ResearchAnalyst/PublishViewLitigation.aspx

A graph of daily closing prices of securities is available at

www.nseindia.com, www.bseindia.com.

Research Analyst views on Subject Company may vary based on Fundamental

research and Technical Research. Proprietary trading desk of MOFSL or its associates maintains arm’s length distance with Research Team as all the activities are segregated

from MOFSL research activity and therefore it can have an independent view with regards to Subject Company for which Research Team have expressed their views.

Regional Disclosures (outside India)

This report is not directed or intended for distribution to or use by any person or entity resident in a state, country or any jurisdiction, where such distribution, publication, availability

or use would be contrary to law, regulation or which would subject MOFSL & its group companies to registration or licensing requirements within such jurisdictions.

For Hong Kong:

This report is distributed in Hong Kong by Motilal Oswal capital Markets (Hong Kong) Private Limited, a licensed corporation (CE AYY-301) licensed and regulated by the Hong

Kong Securities and Futures Commission (SFC) pursuant to the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) “SFO”. As per SEBI (Research Analyst

Regulations) 2014 Motilal Oswal Securities (SEBI Reg. No. INH000000412) has an agreement with Motilal Oswal capital Markets (Hong Kong) Private Limited for distribution of

research report in Hong Kong. This report is intended for distribution only to “Professional Investors” as defined in Part I of Schedule 1 to SFO. Any investment or investment activity

to which this document relates is only available to professional investor and will be engaged only with professional investors.” Nothing here is an offer or solicitation of these

securities, products and services in any jurisdiction where their offer or sale is not qualified or exempt from registration. The Indian Analyst(s) who compile this report is/are not

located in Hong Kong & are not conducting Research Analysis in Hong Kong.

For U.S.

Motilal Oswal Financial Services Limited (MOFSL) is not a registered broker - dealer under the U.S. Securities Exchange Act of 1934, as amended (the"1934 act") and under

applicable state laws in the United States. In addition MOFSL is not a registered investment adviser under the U.S. Investment Advisers Act of 1940, as amended (the "Advisers

Act" and together with the 1934 Act, the "Acts), and under applicable state laws in the United States. Accordingly, in the absence of specific exemption under the Acts, any

brokerage and investment services provided by MOFSL, including the products and services described herein are not available to or intended for U.S. persons. This report is

intended for distribution only to "Major Institutional Investors" as defined by Rule 15a-6(b)(4) of the Exchange Act and interpretations thereof by SEC (henceforth referred to as

"major institutional investors"). This document must not be acted on or relied on by persons who are not major institutional investors. Any investment or investment activity to which

this document relates is only available to major institutional investors and will be engaged in only with major institutional investors. In reliance on the exemption from registration

provided by Rule 15a-6 of the U.S. Securities Exchange Act of 1934, as amended (the "Exchange Act") and interpretations thereof by the U.S. Securities and Exchange

Commission ("SEC") in order to conduct business with Institutional Investors based in the U.S., MOFSL has entered into a chaperoning agreement with a U.S. registered broker-

dealer, Motilal Oswal Securities International Private Limited. ("MOSIPL"). Any business interaction pursuant to this report will have to be executed within the provisions of this

chaperoning agreement.

The Research Analysts contributing to the report may not be registered /qualified as research analyst with FINRA. Such research analyst may not be associated persons of the U.S.

registered broker-dealer, MOSIPL, and therefore, may not be subject to NASD rule 2711 and NYSE Rule 472 restrictions on communication with a subject company, public

appearances and trading securities held by a research analyst account.

For Singapore

In Singapore, this report is being distributed by Motilal Oswal Capital Markets Singapore Pte Ltd (“MOCMSPL”) (Co. Reg. NO. 201129401Z) which is a holder of a capital markets

services license and an exempt financial adviser in Singapore. Persons in Singapore should contact MOCMSPL in respect of any matter arising from, or in connection with this

report/publication/communication. This report is distributed solely to persons who qualify as “Institutional Investors”, of which some of whom may consist of "accredited" institutional

investors as defined in section 4A(1) of the Securities and Futures Act of Singapore .Accordingly, if a Singapore person is not, or ceases to be, such an investor, they must

immediately discontinue any use of this Report and inform MOCMSPL .

Specific Disclosures

1 MOFSL, Research Analyst and/or his relatives does not have financial interest in the subject company, as they do not have equity holdings in the subject company.

2 MOFSL, Research Analyst and/or his relatives do not have actual/beneficial ownership of 1% or more securities in the subject company

3 MOFSL, Research Analyst and/or his relatives have not received compensation/other benefits from the subject company in the past 12 months

4 MOFSL, Research Analyst and/or his relatives do not have material conflict of interest in the subject company at the time of publication of research report

5 Research Analyst has not served as director/officer/employee in the subject company

6 MOFSL has not acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

7 MOFSL has not received compensation for investment banking/ merchant banking/brokerage services from the subject company in the past 12 months

8 MOFSL has not received compensation for other than investment banking/merchant banking/brokerage services from the subject company in the past 12 months

9 MOFSL has not received any compensation or other benefits from third party in connection with the research report

10 MOFSL has not engaged in market making activity for the subject company

6 February 2024

Quess Corp

*******************************************************************************************************************************

The associates of MOFSL may have:

- financial interest in the subject company

- actual/beneficial ownership of 1% or more securities in the subject company at the end of the month immediately preceding the date of publication of the Research Report or

date of the public appearance.

- received compensation/other benefits from the subject company in the past 12 months

- any other potential conflict of interests with respect to any recommendation and other related information and opinions.; however the same shall have no bearing whatsoever on

the specific recommendations made by the analyst(s), as the recommendations made by the analyst(s) are completely independent of the views of the associates of MOFSL

even though there might exist an inherent conflict of interest in some of the stocks mentioned in the research report.

- acted as a manager or co-manager of public offering of securities of the subject company in past 12 months

- be engaged in any other transaction involving such securities and earn brokerage or other compensation or act as a market maker in the financial instruments of the

company(ies) discussed herein or act as an advisor or lender/borrower to such company(ies)

- received compensation from the subject company in the past 12 months for investment banking / merchant banking / brokerage services or from other than said services.

- Served subject company as its clients during twelve months preceding the date of distribution of the research report.

The associates of MOFSL has not received any compensation or other benefits from third party in connection with the research report

Above disclosures include beneficial holdings lying in demat account of MOFSL which are opened for proprietary investments only. While calculating beneficial holdings, It does not

consider demat accounts which are opened in name of MOFSL for other purposes (i.e holding client securities, collaterals, error trades etc.). MOFSL also earns DP income from

clients which are not considered in above disclosures.

Analyst Certification

The views expressed in this research report accurately reflect the personal views of the analyst(s) about the subject securities or issues, and no part of the compensation of the

research analyst(s) was, is, or will be directly or indirectly related to the specific recommendations and views expressed by research analyst(s) in this report.

Terms & Conditions:

This report has been prepared by MOFSL and is meant for sole use by the recipient and not for circulation. The report and information contained herein is strictly confidential and

may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent

of MOFSL. The report is based on the facts, figures and information that are considered true, correct, reliable and accurate. The intent of this report is not recommendatory in

nature. The information is obtained from publicly available media or other sources believed to be reliable. Such information has not been independently verified and no guaranty,

representation of warranty, express or implied, is made as to its accuracy, completeness or correctness. All such information and opinions are subject to change without notice. The

report is prepared solely for informational purpose and does not constitute an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial

instruments for the clients. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. MOFSL will not treat recipients as

customers by virtue of their receiving this report.

Disclaimer:

The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or

distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent. This report and information herein is solely for

informational purpose and may not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Nothing

in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances.

The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment

objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. Each recipient of this

document should make such investigations as it deems necessary to arrive at an independent evaluation of an investment in the securities of companies referred to in this

document (including the merits and risks involved), and should consult its own advisors to determine the merits and risks of such an investment. The investment discussed or views

expressed may not be suitable for all investors. Certain transactions -including those involving futures, options, another derivative products as well as non-investment grade

securities - involve substantial risk and are not suitable for all investors. No representation or warranty, express or implied, is made as to the accuracy, completeness or fairness of

the information and opinions contained in this document. The Disclosures of Interest Statement incorporated in this document is provided solely to enhance the transparency and

should not be treated as endorsement of the views expressed in the report. This information is subject to change without any prior notice. The Company reserves the right to make

modifications and alternations to this statement as may be required from time to time without any prior approval. MOFSL, its associates, their directors and the employees may from

time to time, effect or have effected an own account transaction in, or deal as principal or agent in or for the securities mentioned in this document. They may perform or seek to

perform investment banking or other services for, or solicit investment banking or other business from, any company referred to in this report. Each of these entities functions as a

separate, distinct and independent of each other. The recipient should take this into account before interpreting the document. This report has been prepared on the basis of

information that is already available in publicly accessible media or developed through analysis of MOFSL. The views expressed are those of the analyst, and the Company may or

may not subscribe to all the views expressed therein. This document is being supplied to you solely for your information and may not be reproduced, redistributed or passed on,

directly or indirectly, to any other person or published, copied, in whole or in part, for any purpose. This report is not directed or intended for distribution to, or use by, any person or

entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law,

regulation or which would subject MOFSL to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in

all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

Neither the Firm, not its directors, employees, agents or representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost

revenue or lost profits that may arise from or in connection with the use of the information.

The person accessing this information specifically agrees to exempt MOFSL or any of its

affiliates or employees from, any and all responsibility/liability arising from such misuse and agrees not to hold MOFSL or any of its affiliates or employees responsible for any such

misuse and further agrees to hold MOFSL or any of its affiliates or employees free and harmless from all losses, costs, damages,

expenses that may be suffered by the person

accessing this information due to any errors and delays.

This report is meant for the clients of Motilal Oswal only.

Investment in securities market are subject to market risks. Read all the related documents carefully before investing.

Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

Registered Office Address: Motilal Oswal Tower, Rahimtullah Sayani Road, Opposite Parel ST Depot, Prabhadevi, Mumbai-400025; Tel No.: 022 - 71934200 / 71934263;

www.motilaloswal.com. Correspondence Address: Palm Spring Centre, 2nd Floor, Palm Court Complex, New Link Road, Malad (West), Mumbai- 400 064. Tel No: 022 71881000.

Details of Compliance Officer: Neeraj Agarwal, Email Id: na@motilaloswal.com, Contact No.:022-40548085.

Grievance Redressal Cell:

Contact Person

Contact No.

Email ID

Ms. Hemangi Date

022 40548000 / 022 67490600

query@motilaloswal.com

Ms. Kumud Upadhyay

022 40548082

servicehead@motilaloswal.com

Mr. Ajay Menon

022 40548083

am@motilaloswal.com

Registration details of group entities.: Motilal Oswal Financial Services Ltd. (MOFSL): INZ000158836 (BSE/NSE/MCX/NCDEX); CDSL and NSDL: IN-DP-16-2015; Research

Analyst: INH000000412 . AMFI: ARN .: 146822. IRDA Corporate Agent – CA0579. Motilal Oswal Financial Services Ltd. is a distributor of Mutual Funds, PMS, Fixed Deposit,

Insurance, Bond, NCDs and IPO products.

Customer having any query/feedback/ clarification may write to query@motilaloswal.com. In case of grievances for any of the services rendered by Motilal Oswal Financial Services

Limited (MOFSL) write to grievances@motilaloswal.com, for DP to dpgrievances@motilaloswal.com.

6 February 2024