India – TeamLease second quarter revenue increases 29% but posts a net loss

November 16, 2021

TeamLease Services Ltd (TEAMLEASE: NSI), the India-based recruiting company, on Friday reported autonomous operating income (net of tax) of INR 13.33 billion (USD 138.3 million), up from 29 , 6% year over year in its second fiscal year. quarter ended September 30, 2021.

The group has experienced a recovery in demand. The number of General Staffing and IT Staffing increased during the year.

(millions of INR) Q2 2022 Q2 2021 Switch Q2 2022 (million USD)
Operating income (net of tax) 13 331.5 10 285.9 29.6% 179.3
Total income 13 415.2 10,419.9 28.7% 180.4
Profit / loss before tax -521.4 231.5 -7.0
Net income for the period -529.1 207.7 -7.1

The group reported exceptional items for the quarter, including a provision of INR 750.0 million for its employee contingency fund trust.

“This arrangement was surprising as TeamLease had previously argued that future reserves and earnings would compensate for any shortfall. Although we see this as a one-off blow, it is likely to impact investor confidence, ”analysts from Motilal Oswal Financial Services Ltd said in a report published on LiveMint.

The company is mainly engaged in the field of the supply of manpower services. It operates in the following reportable sectors: general staffing and related services, which includes staffing operations, temporary recruitment and payroll and NETAP (apprenticeship program) and other HR services which include permanent recruitment, regulatory compliance and training operations.

Revenue by segment

(millions of INR) Q2 2022 Q2 2021 Switch Q2 2022 (million USD)
General staff and related services 13 264.7 10,197.3 30.1% 178.4
Other HR services 66.7 88.5 -24.6% 0.9

Earlier this year, TeamLease Services announced it was increasing its stake in Avantis Regtech, a compliance management firm, to 61.5%. Along with the increase in equity, Avantis Regtech also changed its name and brand to TeamLease Regtech.

“Our investments in sales, marketing, structure and talent helped drive strong headcount growth in volume businesses and build a good pipeline for the year. HR services, with the major contribution of EdTech, have become profitable, ”said Ashok Reddy, Managing Director of TeamLease Services.

Reddy added, “We continue to invest in digitizing, hiring and pipeline talent for long-term growth and sustenance. “

TeamLease shares closed at INR 4,664.80 ($ 62.74) on Friday, up 0.07% on the day. The company has a market capitalization of INR 73.71 billion (USD 991.44 million).

Ann J. Cox