TeamLease Services Ltd. share price target

TeamLease Services (TEAM) reported revenue of Rs19.55bn, modest growth of 4% QoQ in Q2FY23. General staffing revenue (Rs17.8bn) growth was soft at 4.7% QoQ led by moderation in headcount addition.

all companies in NIFTY IT Index, several mid-cap, small cap IT firms and new age internet players. Management commentary across companies indicate that strong demand environment is expected to continue over medium term and revenue growth is no longer contingent on winning large deals. Pricing environment has also improved. Additionally, companies are doing aggressive fresher hiring resulting in pyramid balancing which will provide considerable margin tailwinds in FY23....

...

quarters and is now at 387 (vs 365 in 2Q22 and ~260-270 pre-covid) We upgrade our rating to ACCUMULATE (earlier: REDUCE) given 1) Teamlease (TEAM) is gaining market share (32% YoY growth in associate addition in 9MFY22) in strong demand environment where intent of hiring continues to improve, 2) strong operating metrics in terms of new logo additions and improving FTE productivity, 3) Yield shortfall of 1% in PF trust amounting to ~Rs.15 Cr is provided for in Rs.75 Cr provision made in Q2FY22...

across all three segments General staffing grew 10% QoQ, Specialized staffing services grew 17% QoQ and Other HR Services grew 13% QoQ. Net head-account addition was strong in BFSI, Consumer, e-commerce, and tele tech cohorts, while sectors which were worst affected by the pandemic are making a comeback. Consolidated EBIT margin came at 1.5%, was flat QoQ...

TEAM delivered a strong operational performance in 2QFY22, with revenue up 10.7% QoQ on broad based growth across all three verticals. It also added 25k associates (record high) in 2Q, benefitting from a strong demand environment as well as seasonality and flow through from a COVID-impacted 1QFY22. EBITDA margin inched up by 10bp QoQ to 2.2% on strong growth in the Specialized Staffing business and partial drawdown in General Staffing,...

TEAM's operating performance was a beat on our estimates, with total revenue increasing 2.7% QoQ. Revenue growth was led by 17%/22% QoQ growth in Specialized Staffing/Other HR Services, offset by a 1% growth in the General Staffing business. Margin in 1QFY22 inched up by 20bp QoQ to 2.1%, led by strong growth in the Specialized Staffing business and partial reversal in provisions in Other HR Services. It reported an adjusted PAT of INR243m, implying a PAT margin (in line) of 1.8%. The management remains optimistic about a recovery in long term growth....

placed to benefit from an economic recovery going forward followed by catalysts such as 1) Improving business mix, 2) Recovery of growth, 3) Pick up in decision making process, 4) Strong return ratios. Teamlease (TEAM) reported miss on revenue, +2.7% QoQ (Ple: 4% QoQ) as...

Key beneficiary of under penetrated temporary staffing market (0.5% in 2015 vs. global average of 1.7%) and formalisation (16% in 2018) The pandemic has forced enterprises to variablise its cost structure leading to increased outsourcing of flexi staffing. Hence, we expect overall revenues...

Teamlease (TEAM) reported slight miss on revenue, +5% QoQ (Ple: 6.5% QoQ) due to impact of covid in March 21. Growth was led by strong General Staffing and NETAP trainees' headcount, +8% QoQ, 4% YoY surpassing precovid levels. Specialized staffing declined by 3.3% QoQ due to reduction of...

We expect revenues to be impacted in Q1FY22E mainly due to lockdown. However, we expect revenues to improve from Q2FY21E onwards led by a gradual recovery in the economy and improved traction in healthcare, education, e-commerce, manufacturing, essential retail and IT. This, coupled with addition of new logos and large ticket customer are expected to further drive general staffing revenues. In addition, from a structural perspective, we believe that since the pandemic has forced enterprises to variablise its cost structure, it will lead to higher outsourcing of labour making flexi...