TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658), one of India’s largest staffing companies, today announced its results for the second quarter (Q2FY21) of the financial year ending March 31, 2021.
Summary of Consolidated financial results:
(all numbers in Rupees’ Crores except Margins)
- EBITDA represents Operating profit and excludes exceptional/non-business expenses.
Highlights of Q2FY21/H1FY21 performance:
- Billable headcount has gone up by 4% with NETAP adding 7k trainees in Q2FY21. Total revenue has remained flat on QoQ basis in line with Staffing associate headcount movement.
- EBITDA margin and PBT margin of H1FY21 have improved by 31 bps and 24 bps respectively on YoY basis.
- Though average realization per associate in general staffing has remained flat, FTE productivity has improved to 300 in Q2FY21. This has contributed to margin expansion in general staffing from 1.8% PBT in H1FY20 to 1.9% PBT in H1FY21.
- Specialized staffing continues to improve on profitability, driven by business performance and cost optimization.
- Our cash conversion ratio has improved significantly on account of efficient working capital management and tax refunds.
Management Comment
Mr. Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly resultssaid, “Our swift action on cost rationalization and business reorganization during lockdown period has helped us continue margin expansion across businesses despite revenue slowdown. PBT contribution per core employee has increased by 30% between Mar’20 and Sep’20. We have seen headcount growth in Staffing and NETAP businesses getting back on track from September and hope to continue the momentum for the rest of the year”.
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