Q1 Results: TeamLease Services’ Profit Misses Estimates On Provisions For Other HR Business
Teamlease Services Ltd.’s profit fell and missed estimates in the quarter ended June on account of provisions for other human resource business, according to Chief Financial Officer Ravi Vishwanath.
“Other HR services business caused a dip in overall profitability,” Vishwanath told BloombergQuint during an interaction. The company provided for delayed receivables from certain government training programmes, which is expected to be reversed in the second or third quarter, he said.
Also, the company is focusing on bringing its other HR services business “back on track”, Vishwanath said, adding it’s expected to maintain yearly revenue growth of 20-25 percent in the ongoing financial year.
Teamlease’s net profit fell 13.8 percent year-on-year to Rs 18.8 crore in the April-June period. That missed the Rs 27.7-crore consensus estimate of analysts tracked by Bloomberg.
Key Highlights From Interaction
- Continues to see fair demand for general staffing business.
- Expects growth to come back in telecom staffing by March 2020.
- Expects to maintain steady growth momentum through FY20.
Q1 Earnings Highlights (YoY)
- Revenue jumps 22.5 percent to Rs 1,251.2 crore.
- Ebitda rises 9.9 percent to Rs 22.2 crore.
- Margin contracted 20 basis points to 1.8 percent.
Watch the full interview here: