We maintain BUY with a TP of Rs 1,580, giving 30x multiple to normalised June-19 EPS (excluding 80JJAA benefit), and again adding the NPV of the tax benefits availed over the next three years. TeamLease reported good numbers in 1QFY18. Revenue stood at Rs 8.53bn up 4.4% QoQ vs est. of Rs 8.50bn. Growth was led by core staffing (+4.6% QoQ, 96% of rev) and IT staffing (+5.2% QoQ, 3% of rev). Core staffing margin came in at 1.5%, up 14bps QoQ, while IT staffing margin dipped 334bps QoQ to 11.0%, led by salary hikes (~9%). Growth in the higher-margin IT staffing business, rising associate/core ratio and higher mark-ups will drive margins.