MESSAGE TO OUR SHAREHOLDERS
Over the last year we made a number of acquisitions/ investments that bulked up anexisting staffing industry vertical (IT) built a new specialized staffing vertical(Telecom) and raised our Digital Presence (Freshersworld and Schoolguru).
This year TeamLease completes 2 years as a listed entity and 18 years sinceincorporation. It has been interesting journey for the country industry and company overboth periods.
India's high headline GDP growth returned last year but the more important news may bethe early results in the structural change agenda of formalization. The 50% increase innumber of enterprises registered under GST relative to the previous indirect tax regimehas huge implications for the country firm productivity and formal employment becauseinformal employment is the slavery of the 21st century. The multi-million increase inemployer based social security receiving employees is an important indicator of theincreased acceptance of the rule of law and a lower incidence of regulatory arbitrage inlabour laws.
The staffing industry continues to benefit from Indias accelerating five labourmarket transitions; farm to non-farm rural to urban subsistence self-employment todecent wage employment informal employment to formal employment and school to work.These factors are amplified by global changes in the notion of employment the increasedacceptance of flexible work and overdue changes in the worlds of education andemployability. We believe that the 3Es of employment
ease of doing employability and business are converging at edges because the solutionsto matching repair and prepare require increasing co-operation. We believe that thiscreates unique opportunities for the staffing industry for adjacent offerings to customersthat combine the core product with productivity enhancers.
The company continued to execute its core strategy of scale and transformation withinthe board agreed philosophies of capital frugality policy advocacy praying to the onegod of employers diversified client base across product sector region and company B2Bbrand that signals trust and India focus. TeamLease has a world view of beingconsistently warm rather than hot or cold that comes from our boards view that ourmulti-decade opportunityto providethe "infrastructure of opportunity" needs thecompany to take the long view in everything we do. Our long-term goal of margin expansionis continuously monitored through the lens of scale adjacencies higher unit realizationproductivity and digitization.
Over the last year we made a number of acquisitions/ investments that bulked up anexisting staffing industry vertical (IT) built a new specialized staffing vertical(Telecom) and raised our Digital Presence (Freshersworld and Schoolguru). We expect thenext years investment activity to continue our
focus on these three vectors though our preference is always for capital frugal organicgrowth.
While we expect these acquisitions to contribute to our financials in the coming yearour revenue for the year recorded a healthy growth of 19.16% and our profits before taxgrew by 41.33% from Rs. 5150.59 lakhs in 2016-17 to Rs. 7279.11 lakhs in current year. Wealso saw an improvement in our PAT margin by 27.59%. Our EPS improved from Rs. 33.67 in2016-17 to W2.96 in the current fiscal. We also improved our cash profit which increasedto Rs. 8261.43 lakhs in current year from Rs. 6367.51 lakhs in 2016-17.
Dumbledore told Harry Potter in Chamber of Secrets "It is our choices more thanour abilities that reveal who we really are". Over the last year we are proud of thechoices TeamLease has made. Our choices next year will continue to be guided by acontinued focus on scale margin expansion and new products in adjacencies.
Wish us Luck.