TeamLease Services Limited announces results for Q2FY23

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Cutting Edge Job Roles Higher Salaries
Cutting Edge Job Roles Command Higher Salaries, Pay Variance b/w Perm and Temp Roles Reduces – TeamLease

Bengaluru, India, November 09, 2022- TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658), one of India’s largest staffing companies, today announced its results for the second quarter (Q2FY23) of the Financial Year ending March 31, 2023. 

  1. At the group level, revenue grew over 29% on a YoY basis & 4% QoQ. PBT improved from Rs27cr in Q2FY22 to Rs.32cr in Q2FY23. EBITDA margins have improved on QoQ basis. 
  1. General Staffing: We have added net ~5k headcount in Q2FY23 with growth of 2% on QoQ basis and 22% on YoY basis. Revenue up 5% QoQ and 31% on YoY basis.
  1. Degree Apprenticeship (NETAP): headcount is up by ~3k in Q2FY23. Headcount grew by 4% on a QoQ basis.
  1. IT Staffing: headcount is down by 9% on QoQ basis. Revenue is down 3% on QoQ basis and up 5% YoY. 
  2. We continue to maintain staffing funding exposure at 13% and overall DSO improved to 17days.
  3. PAPM has remained flat on a QoQ basis and FTE productivity has marginally improved from Q1FY23 to Q2FY23.
  4. Skills business have been reclassified from operating segment to non-operating segment because of which unallocated EBITDA is impacted by Rs.4cr. 

Management Comment

Mr. Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly results said, “We had a net headcount growth of ~6.5k for the quarter and ~16k for the half-year. Headwinds in IT industry have started impacting the specialized staffing growth and may continue for a while. Our HRtech business is gearing up on new sales, product enhancement and digital solutions.  Revenue growth and tighter cost control will be the focus areas for the next few quarters.”