TeamLease Services plunges over 6% after Q2 loss of Rs49cr

Strong Organic Growth with 25k headcount addition in Q2FY22.

November 15, 2021 2:43 IST | India Infoline News Service
TeamLease Services
TeamLease Services Limited, one of India’s largest staffing companies, on Friday announced its results for the second quarter (Q2FY22) of the financial year ending March 31, 2022.

The company reported an adjusted loss of Rs49cr on account of loss provisions in its PF trust on DHFL investment resolution. It had reported Rs26.9cr profit after tax in Q1FY22 and Rs18.6cr profit after tax in Q2FY21.

The company stock plunged post Q2 earnings. At around 2.48 pm, Team Lease Services Ltd was trading at Rs4,357.65 per piece down by Rs300 or 6.44% from its previous closing of Rs4,657.65 per piece on the BSE.

General Staffing: headcount up by 28% yoy and 9% qoq with highest ever quarterly net addition of 14K associates. Revenue up 34% yoy and 10% on QoQ basis to Rs1,529cr in Q2FY22 from Rs1,140.6cr in Q2FY21 and Rs1.381.3cr in Q1FY22. Core to Associate ratio is highest since IPO at 365.

IT Staffing: headcount up by 21% yoy and 11% qoq. Revenue up 36% yoy and 17% qoq with a net addition of 900 associates in Q2FY22.

Degree Apprenticeship (NETAP): headcount up by 59% yoy and 18% on qoq with highest ever quarterly net addition of 10K apprentices. 204 new logos added during Q2FY22 with largest contribution from IT, Auto, Manufacturing, Ecommerce, Telecom and Consumer verticals.

“EBITDA has improved both on YoY and QoQ basis in terms of absolute and percentage margin. Operating cash flow conversion to EBITDA is 100% for H1FY22. We continue to remain debt free with funding exposure at 14% and DSO at 18 days.

Renamed Avantis to TeamLease RegTech and TL eHire to TeamLease HR Tech,” company said in a filing.

Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly results said, “Our investments across sales, marketing, structure and talent have helped deliver strong headcount growth in volume businesses and build good pipeline for the year. HR Services, with major contribution from EdTech, has turned profitable. We continue our investments in digitization, hiring and talent pipeline for long term growth and sustenance.”

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