TeamLease Services rallies 17%, hits new high post March quarter results

The company said that its general staffing is back to pre-Covid levels of headcount and has surpassed pre-Covid revenue run rate

Shares of TeamLease Services rallied 17 per cent to hit a record high of Rs 4,064.95 on the BSE in intra-day trade on Wednesday after the company reported a consolidated net profit at Rs 19.6 crore for the March quarter (Q4FY21) on the back of healthy operational performance. The company, one of India’s largest staffing companies, had posted a loss of Rs 29.4 crore in the year- ago quarter. The stock surpassed its previous high of Rs 3,884, touched on April 6, 2021.

Total revenue remained flat at Rs 1,350 crore against Rs 1,345 crore in the corresponding quarter of the previous year. The company’s Ebitda (earnings before interest, taxes, depreciation, and amortisation) margin improved 40 basis points (bps) at 1.9 per cent from 1.5 per cent.

The company said that its billable headcount has gone up by 8 per cent sequentially and 4 per cent year on year. General Staffing is back to pre-Covid levels of headcount and has surpassed pre-Covid revenue run rate. Staffing FTE productivity has improved to 352 as of March 31, 2021, from 334 in Q3FY21 and 264 in Q4FY20. The specialized staffing continues to improve on profitability driven by cost optimization and product mix. HR services have grown 33 per cent in revenues QoQ, the company said.

The management said, "The pandemic has given us an opportunity to strengthen digitalization strategy and accelerate client partnership initiatives on productivity enhancement. While the 2nd wave of Covid can marginally impact growth in the current quarter, the company continues to play to the market opportunities in the long run,".

At 02:07 pm, the stock was trading 7 per cent higher at Rs 3,688 on the BSE, as compared to 0.42 per cent decline in the S&P BSE Sensex. A combined around 321,000 shares have changed hands on the counter on the NSE and BSE, so far.