QUESS indicated that its single-point agenda is strong cash generation by improving the conversion cycle. Cash flow from operations (OCF) was INR530m in 3QFY19, as against INR390m in the previous quarter. Cash flow conversion (as a percentage of EBITDA) stood at 44% in 3QFY19 v/s 27% in FY18. Peoples Services the largest contributing segment (~45%) generates a healthy RoCE of 52%. This is dragged down by lower returns in technology solutions, facility management (FMS), industrials, and internet services. FMS RoCE is lower on account of the higher capital base resulting from the Manipal acquisition, excluding which, the RoCE for the segment stands at 21%. Internet services business is yet to turn profitable at the operating level due to higher investments required for sustainability. Profitability in industrial and internet segments is likely to improve over the medium-to-long term.