TeamLease Services surges 17% on strong Q2 results

The stock surged 17% to Rs 1,949, also its record high on the BSE, after the company reported consolidated net profit at Rs 17.4 crore in Q2FY18 against Rs 8.8 crore in Q2FY17.

TeamLease Services surged 17% to Rs 1,949, also its record high on the BSE in intra-day trade after the company nearly doubled Iits consolidated net profit at Rs 17.4 crore in September quarter (Q2FY18). It had reported profit of Rs 8.8 crore in the same quarter a year ago.

Total revenue during the quarter under review grew 20.6% at Rs 880 crore against Rs 729 crore in the corresponding quarter of previous fiscal. EBITDA (earnings before interest, taxes, depreciation and amortization) margins improved to 1.7% in Q2FY18 from 1.0% in Q2FY17 and 1.5% in Q1FY18.

TeamLease Services said it completed acquisition of 100% stake in Evolve Technologies and it becomes wholly owned subsidiary with effect from November 1, 2017.

“We made our foray into Telecom staffing through the acquisition of Evolve Technologies. We will continue to explore merger & acquisition (M&A) opportunities in the market for building vertical capability or complementary service offerings” said Ashok Reddy, Managing Director, TeamLease Services.

At 10:13 AM; the stock was trading 12% higher at Rs 1,870 on the BSE, as compared to 0.07% decline in the S&P BSE Sensex. A combined 16,000 shares changed hands on the counter on the BSE and NSE so far.