TeamLease Services (TEAMLEASE) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue reached ₹647,982.31 lakhs, up 33% YoY; EBITDA before exceptional items rose 45% to ₹14,236.94 lakhs.

• Reported PAT fell to ₹3,945.46 lakhs from ₹7,847.47 lakhs, largely reflecting exceptional PF Trust costs and asset impairments.

Financial highlights

• Consolidated PBT before exceptional items was ₹11,734.32 lakhs, up 27% YoY; EBITDA margin was 2.2% and PBT margin 1.8%.

• Reported consolidated PBT was ₹4,556.45 lakhs; EPS was ₹22.48 versus ₹45.33 in FY21.

• Consolidated operating cash flow was negative ₹614.76 lakhs versus positive ₹30,332.74 lakhs in FY21.

• Management reported operating free cash of ₹22,000 lakhs at March 31, 2022 and targeted future operating cash conversion of 70% or higher.

Outlook and guidance

• FY23 outlook was for higher double-digit growth across key metrics, supported by demand in specialised staffing and a healthy client pipeline.

• Target blended PBT margin of 3.5%, driven by staffing scale, higher realizations, digital productivity and a richer mix of specialised staffing and HR services.

• Planned continued investment in leadership, digitisation, sales and hiring capabilities; FY23 expansion into new staffing verticals and overseas IT staffing markets.

• No FY22 dividend was proposed; cash was prioritized for growth and active M&A discussions.