TeamLease Services shares close nearly 6% higher after Q4 earnings

Shares of staffing company TeamLease Services on Wednesday jumped nearly 6 per cent after the firm reported a consolidated profit after tax (PAT) of Rs 19.64 crore for the quarter ended March 2021.

On the BSE, it rose by 5.26 per cent to close at Rs 3,637.20. During the day, it jumped 17.63 per cent to Rs 4,064.95, its 52-week high.

The stock gained 5.70 per cent to close at Rs 3,657.95 on the NSE.

The company had posted a loss of Rs 29.43 crore during the corresponding period of 2019-20, TeamLease Services said in a BSE filing.

Revenue from operations went up marginally by 1 per cent to Rs 1,340.52 crore, as compared with Rs 1,330.29 crore in Q4 FY20.

For the full fiscal 2020-21, the company's PAT more than doubled to Rs 78.47 crore compared to Rs 34.97 crore in FY20.

However, revenue from operations for FY21 dropped 6.13 per cent to Rs 4,881.45 crore as against Rs 5,200.72 crore in the previous fiscal.

TeamLease Services Managing Director Ashok Reddy said, "All of our businesses have surpassed pre-COVID-19 levels with strong headcount growth in the third and fourth quarters."

He added that the pandemic has given the company an opportunity to strengthen its digitalisation strategy and accelerate client partnership initiatives on productivity enhancement.

"While the second wave of COVID-19 can marginally impact growth in the current quarter, we continue to play to the market opportunities in the long run," Reddy said.