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View All NewsIndia – TeamLease second quarter revenue rises 29% but posts net loss
TeamLease Services Ltd (TEAMLEASE:NSI), the India-based staffing firm, reported on Friday standalone revenue from operations (net of taxes) of INR 13.33 billion (USD 138.3 million), up 29.6% year-over-year in its fiscal second quarter ended 30 September 2021.
The group saw a recovery in demand. General Staffing headcount and IT Staffing headcount increased over the year.
| (INR millions) | Q2 2022 | Q2 2021 | Change | Q2 2022 (USD millions) |
| Revenue from operations (net of taxes) | 13,331.5 | 10,285.9 | 29.6% | 179.3 |
| Total Income | 13,415.2 | 10,419.9 | 28.7% | 180.4 |
| Profit/loss before tax | -521.4 | 231.5 | - | -7.0 |
| Net Profit/loss for the period | -529.1 | 207.7 | - | -7.1 |
The group reported exceptional items for the quarter including a provision of INR 750.0 million in respect of its Employee Provident Fund Trust.
“This provision was surprising as TeamLease had earlier maintained that reserves and future gains will compensate for any shortfall. While we view this as a one-time hit, this is likely to impact investor confidence," analysts at Motilal Oswal Financial Services Ltd said in a report published on LiveMint.
The company is primarily engaged in the business of providing manpower services. It operates in the following reportable segments: General Staffing and Allied Services which is comprised of Staffing Operations, Temporary Recruitment and Payroll & NETAP (apprenticeship programme), and Other HR Services which is comprised of Permanent Recruitment, Regulatory Compliance and Training Operations.
Revenue by segment
| (INR millions) | Q2 2022 | Q2 2021 | Change | Q2 2022 (USD millions) |
| General staffing and allied services | 13,264.7 | 10,197.3 | 30.1% | 178.4 |
| Other HR services | 66.7 | 88.5 | -24.6% | 0.9 |
Earlier this year TeamLease Services announced that it is increasing its stake in Avantis Regtech, a Compliance Management firm, to 61.5%. Along with the equity increase, Avantis Regtech also changed its name and brand to TeamLease Regtech.
“Our investments across sales, marketing, structure and talent have helped deliver strong headcount growth in volume businesses and build a good pipeline for the year. HR Services, with major contribution from EdTech, has turned profitable," said Ashok Reddy, Managing Director, TeamLease Services.
Reddy added, "We continue our investments in digitisation, hiring and talent pipeline for long term growth and sustenance."
Shares in TeamLease closed on Friday at INR 4,664.80 (USD 62.74), up 0.07% on the day. The company has a market cap of INR 73.71 billion (USD 991.44 million).