Bengaluru, India – January 29, 2025 – TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658) has announced a strong Q3 FY25 performance, reporting 19% year-on-year (YoY) revenue growth, driven by staffing expansion, degree apprenticeships, and acquisitions in HRTech. The company is expanding its IT staffing operations to Singapore and the Middle East while integrating recent acquisitions.
Financial Performance: Q3 FY25
Consolidated Financial Highlights (₹ in Crores)
- Total Revenue: ₹2,931 crore (up 19% YoY, up 4% QoQ).
- Operating Revenue: ₹2,921 crore (up 19% YoY).
- EBITDA: ₹35 crore (down 3% YoY, up 4% QoQ).
- EBITDA Margin: 1.2%, compared to 1.5% YoY.
- Profit Before Tax (PBT): ₹29 crore (down 3% YoY, up 10% QoQ).
- Net Profit (PAT): ₹28 crore (down 9% YoY, up 14% QoQ).
- Earnings Per Share (EPS): ₹16.95, compared to ₹18.49 in Q3 FY24.
- Total Revenue: ₹8,333 crore (up 20% YoY).
- Net Profit: ₹73 crore (down 14% YoY from ₹85 crore).
- EPS: ₹44.01, compared to ₹50.26 in the same period last year.
Key Business Segment Performance
1. General Staffing & Allied Services
- Revenue: ₹2,720 crore (up 21% YoY).
- Headcount Growth: 2,99,600 associates (up 16% YoY).
- EBITDA Growth: 6% QoQ due to higher Full-Time Employee (FTE) productivity and value-added services.
- BFSI Sector Impact: Planned absorption of associates by financial institutions affected net headcount additions in Q3 and Q4 FY25.
2. Degree Apprenticeship (DA)
- Headcount Growth: 47,200 apprentices (up 9% YoY).
- Sector Traction: Strong demand from automobile and IT-enabled services (ITES).
- Learning Program Expansion: 36% of trainees are enrolled in education-linked programs, increasing PAPM (Per Apprentice Per Month) revenue.
3. Specialized Staffing
- Revenue: ₹147 crore (down 7% YoY).
- IT Recovery: Marginal growth in headcount, with GCC (Global Capability Centers) contributing 62% of Revenue.
4. HR Services (EdTech, Regulatory Compliance)
- Revenue Growth: 19% QoQ and 66% YoY, driven by CSR project billings.
- Challenges: University billing and collections delays impacted profitability.
Strategic Expansions and Acquisitions
- IT Staffing Expansion to Singapore & Middle East
- New sales operations launched using India’s delivery capabilities.
- Targeting demand in IT outsourcing and GCC growth.
- Acquisition of TSR Darashaw HR Services (December 2024)
- 90% stake acquired for ₹16.08 crore, with an option to buy the remaining 10% stake by October 2025.
- Acquisition of Crystal HR & Security Solutions (January 2025)
- 30% stake acquired, with a plan to buy the remaining 70% in multiple tranches.
- Overseas Investment in Ikigai Enablers Pte Ltd (January 2025)
- 80% stake acquired via TeamLease Digital, supporting IT staffing expansion in global markets.
Financial Position & Cash Reserves
- Net Cash Balance: ₹467 crore.
- Free Cash: ₹310 crore.
- Investment Strategy: Focused on acquisitions, expansion, and digital transformation.
Investor Takeaways
- 19% revenue growth demonstrates a strong demand for staffing services.
- IT staffing expansion into Singapore and the Middle East provides new avenues for growth.
- Strategic acquisitions in HRTech strengthen long-term capabilities.
- Cash reserves of ₹467 crore enable future expansion opportunities.
- Short-term margin impact due to BFSI staffing adjustments and university billing delays.