TeamLease Services has reported strong financial results for the quarter, demonstrating resilience amid persistent challenges in the BFSI and IT services sectors. The company's performance highlights its ability to navigate through sector-specific headwinds while maintaining growth across its business segments.

Key Highlights:

• EBITDA grew by 39% year-on-year
• Added 5,000 headcount across all three business segments
• Onboarded 110+ new client logos
• General staffing business revenue grew 11% year-on-year
• Specialized staffing added 115 resources and achieved positive EBITDA from global operations
• Degree apprenticeship segment added 1,700 apprenticeships

Financial Performance

TeamLease Services delivered a robust financial performance, with EBITDA growing by 39% compared to the same period last year. The company's revenue increased by 12% year-on-year, demonstrating strong topline growth despite challenging market conditions.

Operational Highlights

General Staffing

The general staffing business showed resilience, adding over 3,000 net headcount and achieving an 11% year-on-year revenue growth. The segment onboarded 44 new logos, with 60% of them on a variable markup model. The company reported a strong hiring trend, with 17,000+ new joinees in the quarter, 10% higher than the previous quarter.

Specialized Staffing

The specialized staffing segment added 115 resources, including both India and global headcount. The business onboarded 11 new clients, including 5 Global Capability Centers (GCCs). The global operations contributed Rs. 14.00 crores in gross revenue and achieved positive EBITDA.

Degree Apprenticeship

The degree apprenticeship segment added 1,700 apprenticeships and acquired 14 new clients. The company continues to focus on promoting learning solutions, with 22% of existing clients adopting these offerings.

Sector-wise Performance

While facing headwinds in the BFSI and IT services sectors, TeamLease Services saw growth in other areas:

Future Outlook

Management expects 30% EBITDA growth for the remaining quarters. The company sees green shoots of recovery in the BFSI and consumer sectors entering the next quarter. With over 20,000 open positions, TeamLease Services projects a steady profit expansion trajectory.

Ashok Reddy, Managing Director and CEO of TeamLease Services, commented on the results, saying, "We have had another quarter of growth. At the group level, we added about 5,000 headcount and it has been a quarter where we have grown in all the three businesses of Staffing, Degree Apprentice and Specialized Staffing."

TeamLease Services continues to focus on operational efficiency, diversified service mix, and financial discipline to navigate through sector-specific challenges and capitalize on emerging opportunities in the Indian job market.

TeamLease Services Limited , one of India's leading staffing companies, has announced its ambitious plan to become the world's largest staffing company by workforce. The company is strategically positioning itself for significant growth and expansion in the coming years.

Growth Strategy

TeamLease is focusing its growth strategy on three key areas:

1. GCC-supported specialized staffing
2. Degree apprenticeships
3. Digital HR technology

The company views itself as having a strong and scalable cash-loaded platform designed for profitable growth. This strategy aligns with TeamLease's vision of "Putting India to Work" and its long-term goal of becoming the largest private sector employer in India.

Q1 Financial Performance

TeamLease has released its financial results for the first quarter, showing resilience in the face of macroeconomic challenges:

• Total revenue increased by 12% year-on-year to Rs. 2,904.00 crores
• Operating revenue grew by 12.1% to Rs. 2,891.00 crores
• EBITDA saw a significant rise of 39.1% to Rs. 31.00 crores
• Profit after tax (PAT) increased by 29.2% to Rs. 25.00 crores

Operational Highlights

The company reported several key operational achievements for the quarter:

• Total headcount reached 351,000, a 5.8% increase year-on-year
• General Staffing grew by 4.5% to 295,270 employees
• Degree Apprenticeship program saw a robust growth of 15.7% to 49,000 participants
• Added approximately 5,000 new associates, including 110 in specialized staffing
• Secured 118 new client logos during the quarter

Segment Performance

General Staffing

• 5% year-on-year headcount growth
• 11% revenue increase
• 44 new logos added, with over 60% under the variable model

Degree Apprenticeship (DA)

• Net addition of 1,700 headcount
• 14 new logos added
• 22% of total clients have fully adopted learning solutions

Specialized Staffing

• 22% year-on-year gross revenue growth (13% organic growth)
• 110 net additions, including 20 from TLD Singapore
• Global Capability Centers (GCC) segment contributes 46% of headcount and 64% of net revenue
• Now serving 75 GCC clients, with high activity in BFSI, Healthcare, HiTech, and Engineering sectors

HR Services

• Managing over 3.5 lakh monthly records in HCM business
• QoQ EBITDA impacted by seasonality in EdTech business

Management Commentary

Ashok Reddy, Managing Director of TeamLease Services Limited, commented on the results: "Despite persistent macro-economic headwinds affecting the BFSI and IT services verticals, we have delivered notable EBITDA growth on a year-on-year basis. Resilient demand from enterprise clients and tech profiles in Non-tech companies and Global Capability Centers have helped sustain the growth momentum."

Reddy added, "With a sharp focus on operational efficiency, diversified service mix, and financial discipline, we are gearing up for a steady profit expansion trajectory for the remainder of the fiscal year and delivering value to all stakeholders across business cycles."

Looking Ahead

As TeamLease pursues its goal of becoming the world's largest staffing company by workforce, the company's strategy of focusing on GCC-supported specialized staffing, degree apprenticeships, and digital HR technology appears to be yielding positive results. With its strong financial performance and operational growth, TeamLease is positioning itself as a major player in the global staffing industry.

The company's commitment to putting India to work, coupled with its expanding range of services and growing client base, suggests that TeamLease is well-positioned to capitalize on the evolving employment landscape and continue its growth trajectory in the coming years.