- 27 Jan 2022
- ICICIdirect Research
Teamlease reports strong numbersTEAMLEASE - 2370 Change: -0.80 (-0.03 %)
News: TeamLease Services (TLS) reported strong numbers on revenue front and numbers were ahead of our estimates . However sharp increase in costs led to in line margin level performance . Revenues increased 15.7% QoQ mainly led by 17% QoQ growth in General staffing and 17.7% QoQ growth in Other HR services while specialised staff growth was muted at 1.2% QoQ. EBITDA margins declined 10 bps QoQ to 2.1% (in line with our estimates ) despite strong revenue, was due to sharp increase in employee and other expenses. The company has added 22K associates for the quarter.
Views: The revenue has come strong for the quarter due to continued strong hiring in the sectors of IT, e-commerce, consumer , BFSI, telecom, etc. However, margins were impacted due to weak performance in specialised HR services (due to furloughs and unplanned leaves especially in the IT sectors). The company is a key beneficiary of under penetrated temporary staffing market and buoyancy in hiring in IT, e-commerce and retails augurs well. The company is confident of recovery in Q4 and beyond.