Share price of one of India’s leading human resource company moved down by 11 percent on BSE to Rs. 3,153.35 in the trading session of Thursday, after reporting a fall in net profit of 10 percent QoQ.
With a market capitalisation of Rs. 5,324.13 crore, the shares of TeamLease Services Limited slumped by 10.4 percent on BSE and closed in the red at Rs. 3,175, compared to its previous closing price of Rs. 3,543.3.
The fluctuations in the share prices were observed after the company announced the financial results for Q4 FY23-24 and FY24, through the recent filings with the stock exchanges on Thursday.
The operating revenue stood at Rs. 2,432 crore in Q4 FY23-24, indicating a growth of 20 percent from Rs. 2,027 crore in Q4 FY22-23. However, on a quarter-on-quarter basis, the operating revenue fell by 1% from Rs. 2,445 crore in Q3 FY23-24.
TeamLease witnessed a rise in the net profit by 15 percent YoY from Rs. 24 crore in Q4 FY22-23 to Rs. 28 crore in Q4 FY23-24, but the PAT declined by 10 percent QoQ from Rs. 31 crore in Q3 FY23-24 to Rs. 28 crore in Q4 FY23-24.
On a year-on-year basis, the company’s Earnings Before Interest, Taxes, Depreciation, and Amortisation, or EBITDA stood at Rs. 37 crore in Q4 FY23-24, as against Rs. 34 crore in Q4 FY22-23, registering a growth of 9 percent.
In Q4 FY23-24, the company’s net cash stands at Rs. 345 crore, including free cash of Rs. 265 crore, while the outstanding Income Tax receivable is Rs. 264 crore.
TeamLease had a slight setback on BFSI hiring for the past few months, while in the short run, the company will have the business impact of salary hikes, full National Employability Enhancement Scheme (NEEM) exit and seasonality of the EdTech business in Q1 FY24-25, management reported.
Further, headwinds in the IT industry continue to impact the growth and profitability of TeamLease Services.
As of March 2024, BlackRock through BlackRock Global Funds – India Funds holds 1.97 lakh equity shares in TeamLease Services, representing a 1.17 percent stake.
The stock has delivered positive returns of 20.6 percent in the last six months and 42 percent in one year. However, so far in 2024, it has given 2.4 percent of negative returns.
TeamLease Services Limited is one of India’s leading human resource company offering a wide range of solutions to over 3,800 employers for their hiring, productivity and scale challenges.
The company also operates India’s first Vocational University and PPP National Employability through the Apprenticeship Program (NETAP). It offers solutions to large, medium, and small clients across the 3Es of Employment, Employability, and Ease-of-doing Business.
Written by Shivani Singh
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