TeamLease Services Ltd (TEAMLEASE: NSI), the India-based staffing firm, reported operating revenue on 29 November of INR 29.31 billion (USD 338.6 million), up 19.4% year-over-year in its fiscal third quarter ending 31 December 2024.

Despite the positive revenue development, a 19% rise in employee costs and a 34% jump in subcontracting expenses pushed total expenses higher which meant that analyst expectations on net profit were missed. Reuters reported that analysts, on average, expected a net profit of INR 310.5 million, according to data compiled by LSEG.

At the group level, the company added approximately 3,000 in headcount. EBITDA growth was backed by operating leverage in the staffing business.

TeamLease also announced that it acquired an 80% stake in Ikigai Enablers, which aims to help the company expand its IT staffing business in Singapore and the Middle East.

Founded in 2017, Ikigai Enablers is a Singapore-based boutique consulting firm specialising in HR and HR Technology services. The price for the 80% stake is INR 50 million (USD 577,679).

On 20 December 2024, the company entered into a share sale and purchase agreement with TSR Darashaw to acquire a 90% stake in TSR Darashaw HR Service.

On 6 January, the company entered into a share purchase agreement with Crystal HR & Security Solutions and acquired a 30% stake by way of an allotment of equity shares on a fully diluted basis intending to acquire the balance stake of 70% in multiple tranches, subject to approval of the board of directors of the company and on completion of the various terms and conditions set out in the share purchase agreement.

“Using our delivery capabilities and existing capacity in India, we are planning to expand sales operations of IT staffing in Singapore and Middle East,” Ashok Reddy, Managing Director, TeamLease Services, said in a press release. “Headwinds in BFSI may continue for staffing business on account of recent regulations issued by RBI (Reserve Bank of India). We are poised to drive synergies in HRTech business by integrating our acquisition of TSR Darashaw HR Services and Crystal HR.”

Revenue by segment

In Specialised Staffing, the group said that with greenshoots in IT recovery, it has recorded marginal growth in headcount in the current quarter. GCC now accounts for 62% of the total specialised staffing revenue.

In HR Services, the company said the integration of TSR Darashaw HR Services and Crystal HR is underway.

TeamLease also announced that it will appoint a new CEO for its Degree Apprenticeship business. Ramesh Alluri Reddy will resign as CEO. Nipun Sharma will head the Degree Apprenticeship division as CEO with effect from 29 January 2025.

TeamLease Services set a new 52-week low during 29 January’s trading session when it reached INR 2,460.00 (USD 28.42). Over this period, the share price is down 12.52%. Shares last traded at INR 2,497.65 (USD 28.85), down 1.00% on the day. The company has a market cap of INR 42.27 billion (USD 488.30 million).