TeamLease’s provision on loss of investments in NBFC’s, a negative surprise
News: TeamLease Services’ (TLS) reported 10.7% QoQ increase in revenues to Rs.1,524 crores, mainly led by 10% QoQ growth in General staffing and 17.4% QoQ growth in specialised staffing. The company’s EBITDA margins improved 10 bps QoQ to 2.1% despite strong revenue, was due to sharp increase in employee expenses. The company has added 59 new logos in general staffing. HR services reported EBITDA breakeven for the quarter. Negative surprise came in the form of provision it recognised (Rs.75 crore for the quarter) due to MTM loss in its investments in DHFL and IL&FS, as a result of which, it reported loss of Rs.49 crore for the quarter.
Views: The revenue has come strong for the quarter due to continued strong hiring in the sectors of BFSI, Consumer, E-Commerce as well as on possible recovery in some of the covid impacted sectors like airlines, hospitality etc. The provision pertains to its loss in investments in NBFC’s was a negative surprise for the quarter