TeamLease Services spurts after Q3 PAT rises 31% YoY to Rs 30 cr

TeamLease Services surged 9.27% to Rs 4150.45 after the company's consolidated net profit rose 31.05% to Rs 29.97 crore on 38.16% increase in revenue from operations to Rs 1,762.08 crore in Q3 December 2021 over Q3 December 2020.

On a consolidated basis, EBITDA rose 54% year-on-year to Rs 38 crore in Q3 December 2021 over Q3 December 2020. EBITDA margin stood at 2.1% in Q3 December 2021 compared with 1.9% in Q3 December 2020. Profit before tax rose 29.93% to Rs 31.95 crore in Q3 FY22.

In general staffing segment, headcount rose by 24% on YoY basis and 9% on QoQ basis with highest ever quarterly net addition of 15K+ associates. Revenue up 38% YoY and 17% on QoQ basis. PAPM has gone up from Rs 712 in Q2FY22 to Rs 726 in Q3FY22. Core to Associate ratio improved to 387.

In IT staffing, headcount rose by 28% on YoY basis and 5% on QoQ basis. Revenue up 34% YoY with a net addition of 400 associates in Q3FY22. Seasonal impact in Q3FY22 on account of mandatory furlough.

In Degree Apprenticeship (NETAP), headcount rose by 44% on YoY basis and 9% on QoQ basis.

The company's operating cash flow conversion to EBITDA is 85% for 9MFY22. The company said it continues to remain debt free with staffing funding exposure at 14%.

Ashok Reddy, managing director, TeamLease Services commenting on the quarterly results said, "Our industry focused approach in sales and hiring helped us deliver volume growth and drive margin expansion at an overall portfolio level. We continue to make organic investments in talent, technology, and brand over the next few quarters to strengthen our strategy for volume, price, and productivity. We will drive on creating adjacencies through incubation and by exploring M&A opportunities."

TeamLease Services is a leading HR services company offering a range of solutions to 3500+ employers for their hiring, productivity, and scale challenges.

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