2025-05-02 10:50:55
Latest Post
Godrej Agrovet Limited consolidated Q4FY25 net profit drops QoQ to Rs. 70.78 crores
L G Balakrishnan & Bros Ltd posts Rs. 84.03 crores consolidated profit in Q4FY25
Swastika Investmart Ltd Q4 FY2025 consolidated profit slumps to Rs. 27.17 lakhs
Vertex Securities Ltd consolidated Q4 FY25 loss at Rs. 53.99 lakhs
The Federal Bank Limited consolidated Q4FY25 PAT jumps to Rs. 1108.31 crores
Research
TeamLease Services - Q4FY20 First Cut - ICICI Securities
Posted On : 2020-06-10 10:09:13( TIMEZONE : IST )
CMP: Rs. 1790; MCap: Rs. 3060 crore
TeamLease Services' (TLS) Q4FY20 numbers were below our estimates on the profitability front. The company's EBITDA margin stood at 1.5% vs our expectation of 2.1%. We believe the decline in margins was mainly due to losses in HR services and higher provision made by the company of Rs. 6.2 crore mainly due to current situation. The company has taken one time non cash charge i.e. Minimum Alternate Tax credit of Rs. 49.6 crores on account of the company adopting and moving to the new tax regime. This has led to the company reporting a loss at net level of Rs. 29.4 crore. Hence, we would be comparing the company's Profit Before Tax (PBT) for better understanding.
Q4FY20 Earnings Summary
- Revenues declined 1.6% QoQ (up 14.3% YoY) to Rs. 1330.3 crore (vs our Rs. 1318 crore estimate). Revenues from general staffing declined 1.7% sequentially to Rs. 1195, specialised staffing grew 1.8% QoQ to Rs. 106 crore and HR services decreased 7.3% QoQ to Rs. 28 crore
- EBITDA margins declined 53 bps QoQ to 1.5% (vs. our expectation of 2.1%). We believe the decline in margins was mainly due to losses in HR services and higher provision made by the company of Rs. 6.2 crore mainly due to current situation
- PBT of Rs. 22.7 crore came in above our Rs. 21.6 crore estimate mainly due to higher other income. The company's funding exposure in general staffing is 14%
In the near term, we expect the company to face headwinds due to Covid 19 pandemic. However, the company is well positioned to capture the strong demand from under penetrated temporary staffing business in the long run. We would be revisiting our estimates and target price post the conference call.
Shares of TeamLease Services Ltd was last trading in BSE at Rs.1720 as compared to the previous close of Rs. 1754.05. The total number of shares traded during the day was 1036 in over 264 trades.
The stock hit an intraday high of Rs. 1764.35 and intraday low of 1720. The net turnover during the day was Rs. 1809114.
