TeamLease Q3 Results Review - Strong Delivery; Margin Pickup In FY25 To Drive Rerating: Motilal Oswal

Motilal Oswal Report

TeamLease Services Ltd.'s Q3 FY24 revenue growth of 22% YoY was ahead of our estimate. Revenue growth was led by 17% YoY growth in general staffing (plus 23% YoY) and specialized staffing (plus 12% YoY), while other HR services was up only 10% YoY (down 14% QoQ), due to Edtech revenue deferrals during the quarter. Specialised staffing growth was led by GCCs in Q3.

TeamLease reported an Ebitda margin of 1.5%, ahead of our estimate of 1.4%, primarily due to higher margins in other HR services. Despite improvement in profitability and performance management and better productivity, general staffing margins moderated five basis points in Q3 due to the one-off impact of bonus disbursements.

General staffing performance in Q3 exhibited a mixed trend, with better than-expected growth, but a weaker margin profile (partially due to one-off employee bonuses impacting the revenue base).

Moreover, the modest addition of 7400 associates was attributed the company’s focus on higher margin services.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.