TeamLease Services Limited, one of India’s largest staffing companies, on Wednesday announced its results for the first quarter (Q1FY24) of the financial year ending March 31, 2024, the company announced through an exchange filing.
Consolidated Financial Results
At the group level, revenue grew 7 percent QoQ and 16 percent YoY. Drop in sequential EBITDA is on account of NEEM headcount loss, seasonality in Edtech and core employee annual hikes.
General Staffing: The company added net approx 13000 headcount in Q1FY24 taking the total billable headcount to approx 2.37 lakhs. Staffing revenue grew 8 percent QoQ and 18 percent YoY.
Degree Apprenticeship (DA): Trainee headcount dropped by to approx. 8000 in Q1FY24 on account of discontinuance of the NEEM program. We expect balance trainees to attrite by Q3FY24.
Specialised Staffing: Despite headwinds in IT industry, the company sustained revenues and profits with a diversified portfolio of captives and services companies.
HR Services: Seasonality in the EdTech business has impacted the revenues and profits of the segment for Q1FY24.
During the quarter, TeamLease received an income tax refund of ₹36 crore including ₹6 crore of interest. Outstanding income tax refund is ₹230 crore and cash balance is ₹311crore as of Q1FY24.
“With our improved sales and hiring capabilities, general staffing business is on strong growth trajectory driven by headcount addition on both new and existing clients. We expect DA business to turn net positive on headcount movement by the end of Q2 and continue the growth momentum thereon. Margin pressure continues on account of reduced contribution from Specialized staffing and DA business, coupled with PAPM pressure in Staffing," said Ashok Reddy, Managing Director, TeamLease Services Limited.
TeamLease Services Limited shares
The shares of TeamLease Services Limited on Wednesday at 3:10 pm IST were at ₹2,412, down by 0.050 percent.