TeamLease Services (TEAMLEASE) Q4 16/17 earnings summary

Executive summary

• FY17 consolidated revenue rose 22% YoY to ₹3,064.3 crore; EBITDA reached ₹44.3 crore, PBT ₹61.3 crore and PAT ₹66.3 crore.

• Staffing remained the core business; acquisitions added IT staffing, while the integrated Employment, Employability and Education model supported expansion across India.

Financial highlights

• Consolidated revenue from operations was ₹3,041.9 crore versus ₹2,504.9 crore in FY16; total income was ₹3,064.3 crore versus ₹2,520.4 crore.

• Consolidated operating EBITDA increased 72% to ₹44.3 crore from ₹25.78 crore; EBITDA including other income was ₹66.7 crore versus ₹41.2 crore.

• Consolidated PBT increased 62% to ₹61.31 crore; PAT rose 168% to ₹66.34 crore, with earnings also benefiting from tax provisions and deferred tax benefits.

• No dividend was proposed; FY17 profit was retained in the profit and loss account, with no transfer to reserves.

Outlook and guidance

• Industry estimates anticipated formal employment CAGR of 9–10% and flexi-staffing CAGR of 20–25% through FY19, supported by labour-law changes and new-sector demand.

• The domestic staffing market was expected to expand as organized temporary workers increased from 2.1 million to 2.9 million by 2018; IT staffing was identified as a future demand driver.

• TLSU was expected to break even by FY18; quarterly loan repayments of ₹25 lakh were scheduled to begin in FY19, subject to the stated plan.