This company has reported Q1Fy20 results, revenue from operation rose by 22% (Y-o-Y) & 7% (Q-o-Q), EBITDA margin contracted by 40 bps (Y-o-Y) due change in revenue mix and net profit declined by 14% (Y-o-Y) and 28% (Q-o-Q) to Rs 188 million. Revenues from General Staffing were up 23% (Y-o-Y), Specialized Staffing was up 31% (Y-o-Y) and other HR Services was down by 26% (Y-o-Y). The ratio of general staffing associates/trainees to staffing core employees improved to 277 in Q1FY20 from 270 in Q4FY19.
EBITDA was Rs 227 million for Q1FY20 reflecting YoY growth of 14% and Rs 942 million for FY19 reflecting YoY growth of 37%. This was achieved by way of operating leverage in general staffing.
General staffing associates stood at 160,614 ,grew by 16% YoY, General staffing margins expanded by 40bps YoY because of a tailwind from improvement in employee productivity and operational efficiencies. In Specialized staffing business witnessed 70 bps fall in EBITDA margins.
Management said Teamlease currently has an open position of 10000 and will continue to focus on filling this position. The company guided to achieve 15-17% associate growth in the medium term. Management is also targeting to provide all general staffing clients with value-added services (Other HR services), thus providing a more comprehensive suite of services and improving customer stickiness. Telecom staffing margin is at 3%, Management expects telecom margins to recover back to ~5% with investments made last year and realignment of associates but cited that revenue growth is expected to be flat in this segment.