TeamLease Services drops after Q2 PAT slips 28% YoY to Rs 25 cr

TeamLease Services declined 7.49% to Rs 2,628.40 after the company's consolidated net profit declined 28% to Rs 25 crore despite 8% increase in revenue from operations to Rs 2797 crore in Q2 FY25.

Profit before tax (PBT) declined 11.87% to Rs 25.91 crore during the quarter.

EBITDA stood at Rs 33 crore in Q2 FY25, registering the growth of 50% as compared with Rs 22 crore posted in corresponding quarter last year. EBITDA recovery is backed by operating leverage in Staffing business and growth in EdTech billing. EBITDA margin reduced 1.2% in Q2 FY25 as against 1.4% in Q2 FY24.

In Q2 FY25, revenue from general staffing rose 19% YoY to Rs 2,98,300. At the group level, the company added around 18k headcount during the quarter largely led by BFSI and Consumer. Headcount jumped 16% YoY to 3,50,240 in Q2 FY25

Revenue from degree apprenticeship increased 7% YoY to Rs 45,270 crore in Q2 FY25, net growth in trainee headcount, led by automobile and ITES.

Revenue from specialized staffing declined 20% YoY to Rs 6,670 crore during the quarter. The company said that headwinds in the IT industry continue to impact the growth in specialized staffing. While there has been consistent growth in GCC clients, net positive headcount growth is dependent on recovery in IT services.

GCC now accounts for 61% of the total specialized Staffing revenue.

We are investing in a HireTech platform which is expected to go-live in FY26. The platform aims to bring down the hiring costs significantly in a phased manner, the company stated in an exchange filing.

Ashok Reddy, managing director, TeamLease Services, said, We have crossed 3.5lac billable headcount in our Employment cluster owing to strong growth across sectors. Profit expansion is the key focus area this year, and we are confident of maintaining strong double-digit growth in the sequential profits. Our planned investments in Hiretech and Hrtech solutions, through organic and inorganic route, will give us enhanced capabilities in the coming quarters.

Team Lease Services provides to its clients a gamut of HR services that include Staffing Services, Temporary Recruitment, Permanent Recruitment, Payroll Process Outsourcing, Regulatory Compliance Services, Vocational Training / Education and Assessments.

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