TeamLease Q1 net profit up 33% at Rs 22 crore

Staffing company TeamLease Services on Tuesday reported 32.9% increase in net profit at Rs 21.8 crore for the first quarter ended June 2018, compared with Rs 16.4 crore in the corresponding quarter of the last fiscal.

Its operating revenue grew by 20% Y-o-Y from Rs 853 crore in Q1FY18 to Rs 1,021.3 crore in Q1FY19. The company’s net profit margin improved to 2.1% in the first quarter from 1.9% in the corresponding period of the last fiscal.

As of June 30, 2018, the staffing company had a net increase in associate/trainee headcount by over 32,000 Y-o-Y compared to June 30, 2018, and an increase of over 10,000 Q-o-Q compared to March 31, 2018.

The company’s Top 5 and Top 10 clients contributed to 14% and 20% of its net revenue, respectively for the first quarter, implying a well-diversified mix of client portfolio.

Ashok Reddy, MD, TeamLease Services Limited said, “We delivered a strong quarter and have got back on track in terms of growth in revenues and headcount. Productivity metrics in staffing business continue to improve and drive the organic margin expansion while capital frugality and positive cashflows continue to remain as key focus areas.”

It has more than 1.93 lakh employees/associates/trainees with over 2,250 clients across 6,600 locations in India.

Shares of the company closed at Rs 2,812, up 1.01% on BSE on Tuesday.