India – TeamLease Q4 revenue up, but net profit falls

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TeamLease Services Limited on Wednesday reported INR 9.78 billion (USD 150 million) in revenue from operations net of taxes in its fiscal fourth quarter ended 31 March 2018 — representing an increase of 20%. The increase for the full year was 43%, but was approximately 18% on an organic basis. TeamLease also announced the C. Mruthunjaya Murthy resigned as company secretary and compliance officer.

The India-based staffing provider noted several acquisitions between September 2016 to November 2017 that impacted revenue, including ASAP, Nichepro, Keystone Business Solutions Private Limited, and Evolve Technologies and Services Private Limited.

The company also made acquisitions of Fresher’s World and Schoolguru in the past year.

Net profit for the fourth quarter fell 36%.

(INR millions)
Q4 2018
Q4 2017
% change
Q4 2018 (USD millions)
Revenue from operations (net of taxes)
9,775
8,170
20%
150
Net profit for the period
212
332
-36%
3

The company also reported segment revenue. General staffing and allied services includes temporary staffing and payroll, specialised staffing includes IT and telecom staffing operations, and other HR services includes permanent placement and other services.


Revenue by segment (INR millions)
Q4 2018
Q4 2017
% change
Q4 2018 (USD millions)
General staffing and allied services
8,830
7,806
13%
136
Specialised staffing services
728
587
24%
11
Other HR services
217
130
67%
3


Quote

“We have forayed into digital space through acquisitions of Fresher’s World and Schoolguru this year,” Managing Director Ashok Reddy said. “We remain confident of sustaining the margin expansion through scale and transformation while holding ourselves to our primary metrics of return on capital and cashflow generation.”


Full-year earnings (INR millions)
FY 2018
FY 2017
% change
FY 2018 (USD millions)
Revenue from operations (net of taxes)
36,241
30,413
43%
557
Net profit for the year
735
576
28%
11


Share price and market cap

TeamLease shares closed up 4.73% Thursday to INR 2,883.10 on the National Stock Exchange.

The company’s shares on the Bombay Stock Exchange closed up 4.38% Thursday to INR 2,884.80.

Source:: http://www2.staffingindustry.com/row/Editorial/Daily-News/India-TeamLease-Q4-revenue-up-but-net-profit-falls-46118

      

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