Team Lease Services Ltd share Price Today

TeamLease Ltd (TLL) is one of the leading providers of human resource services in the organised segment with ~7% share in flexi staffing.

• Employment services include temporary staffing solutions, IT staffing, regulatory consultancy for labour law compliance and training & skills
• Net debt free and healthy double digit RoCE (>14%) key positives

TeamLease reported decent margins in Q4FY23 results.

• Revenue reported muted growth of 0.9% QoQ to ₹ 2,027.3 crore
• EBITDA margin improved 10 bps QoQ to 1.7%
• PAPM declined by ₹ 15 in the quarter

Miscellaneous Commercial Services company TeamLease Services announced Q2FY24 results:

1. Financial Performance:
- TeamLease Services reported a total revenue of Rs 2,286 crore in Q2FY24, showing a growth of 5% compared to Q1FY24.
- The operating revenue for Q2FY24 stood at Rs 2,273 crore, with a QoQ growth of 5%.
- The company's EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortization) for Q2FY24 was Rs 32 crore, with an EBITDA margin of 1.4%.

2. Profitability:
- TeamLease recorded a profit before tax (PBT) of Rs 29 crore in Q2FY24, showing a growth of 14% compared to Q2FY23.
- The PBT margin for the same period was 1.3%.
- The company's profit after tax (PAT) margin stood at 1.2% in Q2FY24.

3. Market Presence:
- TeamLease added 122 new clients during Q2FY24, expanding its market presence.
- The company's total headcount crossed 3 lakhs, indicating a strong positioning in the staffing industry.
- TeamLease's specialized staffing division sustained revenues and profits despite headwinds in the IT industry.

4. General Staffing:
- TeamLease added approximately 28,000 net headcount in the general staffing division in H1FY24, taking the total billable headcount to around 2.51 lakhs.
- The staffing revenue grew by 5% QoQ and 20% YoY, driven by the BFSI (Banking, Financial Services, and Insurance) and Consumer verticals.

5. Degree Apprenticeship:
- The trainee headcount for the Degree Apprenticeship division showed net positive growth in the months of August and September 2023, driven by the National Apprenticeship Promotion Scheme and Work Integrated Learning Program.
- TeamLease expects the attrition of NEEM (National Employability Enhancement Mission) trainees to be completed by Q4FY24.

6. HR Services:
- The HR Services division of TeamLease witnessed a revenue growth of 27% QoQ and 20% YoY.
- The company introduced Digivarsity, a Multi-Employer, Multi University platform, in the Edtech segment to help students make informed career decisions.

Ashok Reddy, Managing Director, TeamLease Services commenting on the quarterly results said, “Staffing outlook has been positive on the back of strong hiring trends across all non-IT industry verticals. We have added over 28,000 net headcounts in Staffing in the first half of the year, aided by festive demand in Q2. Measures taken toward cost optimization, hiring, and sales restructuring helped us accelerate revenues and profitability. With strong leadership teams built across all business units, we are confident of maintaining growth momentum into the future. Uncertainty in IT staffing outlook continues.”

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