TeamLease Q4 Review - Downbeat Commentary On Margins: ICICI Securities

Employees work in the office in New Delhi, India. (Photographer: Anindito Mukherjee/Bloomberg).

TeamLease Q4 Review - Downbeat Commentary On Margins: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

While TeamLease Services Ltd.'s provision for bad debts had hitherto been a recurring problem, it is comforting to note that, for FY21 , most of these provisions were reversed and cash collections were not impacted.

Despite good increase in headcount (up 5% QoQ), revenue (up 6% QoQ) and productivity (from 334 in December-2020 to 352), normalised general staffing Ebitda margin was largely stagnant.

This was driven by the discounts-led pressure on mark-ups, which is likely to continue through FY22.

Click on the attachment to read the full report:

ICICI Securities TeamLease Q4FY21 Results Update.pdf

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