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

Commercial Services company TeamLease Services announced Q1FY25 results:

• At the group level, we added ~12,700 headcount during the quarter including the loss of ~6000 NEEM trainees. Revenue grew by 6% QoQ and 19% YoY.
• EBITDA decline is because of the seasonality and delayed university billing in EdTech business and annual appraisal of core employees.
• 187 new logos were added during the quarter.
• We have received an Income Tax refund for AY 2023-24, amounting to Rs 115cr including interest of Rs 6.5 crore in Q1FY25.
• Net cash stands at Rs.439 crore, including free cash of Rs.320 crore.
• General Staffing:
  • Added net ~15,500 headcount in Q1FY25 taking the total billable headcount to ~2.82 lakhs.
  • Staffing revenue grew by 8% on QoQ backed by headcount growth across sectors.
  • Degree Apprenticeship (DA):
• Net growth in trainee headcount, excluding the attrition of last lot of NEEM trainee loss of ~6,000 in Q1FY25. Growth is driven by NAPS (National Apprenticeship Promotion Scheme) and WILP (Work Integrated Learning Program).
• Specialized Staffing:
  • Headwinds in the IT industry continue to impact on the growth in specialized staffing. While there has been consistent growth in GCC clients, net headcount loss with IT services clients was noted in Q1FY25. 

Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly results said, “The recent union budget with the proposed initiatives around employment and employability is a welcome enabler for our long-term objective of Putting India to Work. Coupled with the implementation of Labour Codes, we believe these initiatives will drive up formalisation and productivity of the workforce in the coming years. On the business front, Staffing has been maintaining a healthy volume growth consistently across quarters and across diversified portfolio of clients. With NEEM impact fully addressed, DA will become a contributor on profit growth and margin expansion. While the billing cycle in EdTech business has impacted the Q1 profitability, with the current signup of universities and students, we are confident of posting as substantial growth in both revenues and profitability of EdTech business this year.”

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