TeamLease Services (TEAMLEASE) Q4 17/18 earnings summary

Executive summary

• FY18 consolidated revenue rose 19.16% YoY to ₹362,411.54 lakh; PBT increased 41.33% to ₹7,253.37 lakh and PAT rose 27.60% to ₹7,345.59 lakh.

• Growth reflected organic expansion and acquired businesses; associate headcount reached ~181,000, including ~43,000 NETAP trainees.

• Strategy centered on scale, specialized IT and telecom staffing, digital presence, and long-term margin expansion through productivity, digitization and higher unit realization.

Financial highlights

• Consolidated revenue from operations was ₹362,411.54 lakh versus ₹304,129.41 lakh in FY17; total income was ₹363,974.93 lakh.

• Consolidated EBITDA was ₹6,852 lakh, up 84.99% YoY; EBITDA margin improved 67 bps to 1.89%.

• Consolidated PAT was ₹7,345.59 lakh versus ₹5,757.04 lakh; PAT margin was 2.03%, up 14 bps YoY.

• Consolidated EPS was ₹42.96 versus ₹33.67; cash profit increased to ₹8,261.43 lakh from ₹6,367.51 lakh.

• Operating cash flow was ₹7,924.56 lakh versus ₹3,573.74 lakh; cash and cash equivalents at year-end were ₹6,687.14 lakh.

Outlook and guidance

• Planned continued investment in IT staffing, telecom staffing and digital presence, while pursuing margin expansion through higher unit utilization, productivity and digitization.

• Management expected acquisitions to contribute to FY19 financials and indicated future investment activity would remain focused on IT, telecom and digital vectors, with preference for capital-frugal organic growth.

• Indian GDP growth was forecast at 7.4% in FY19 and 7.8% in FY20; the economy was expected to stabilize in H1 FY19 as GST effects faded and investment and trade improved.