TeamLease Services Limited — Earnings Release 2020

Nov 8, 2019

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Press Release- Q2 FY20

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Bengaluru, India, Nov 8, 2019- TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658) , one of India’s largest staffing companies, today announced its results for the second quarter ( Q2FY20 ) of the financial year ending March 31, 2020.

Summary of Consolidated financial results:

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----- Start of picture text ----- (all numbers in Rupees’ Crores except Margins)YoY QoQ YoYParticulars Q2FY20 Q2FY19 Q1FY20 H1FY20 H1FY19Growth % Growth % Growth %Total Revenue 1,273.2 1,094.7 16% 1,254.7 1% 2,527.9 2,121.2 19%Operating Revenue 1,267.8 1,090.7 16% 1,251.2 1% 2,519.0 2,112.0 19%EBITDA 23.6 24.0 -1% 22.7 4% 46.3 44.0 5%EBITDA margin 1.9% 2.2% 1.8% 1.8% 2.1%PBT 19.4 23.7 -18% 17.3 12% 36.7 45.2 -19%PBT margin 1.5% 2.2% 1.4% 1.5% 2.1%Net Profit (PAT) 20.2 24.9 -19% 18.8 7% 38.9 46.7 -17%PAT margin 1.6% 2.3% 1.5% 1.5% 2.2%EPS (Basic and Diluted) - Rs. 11.8 14.6 11.0 22.8 27.3----- End of picture text -----

Highlights of H1FY20/ Q2FY20 performance:

1. While core staffing business maintained 20% revenue growth YoY, our planned revenue reduction in Govt. training business has overall impacted the topline growth.

2. Staffing EBITDA margin improved to 1.9% in H1FY20 compared to 1.8% in H1FY19.

3. Profit before Tax improved by 12% QoQ compared to Q1FY20 on account of collections in HR services and Govt. training businesses.

4. Our total employee/ trainee headcount is ~225,000 as of September 30, 2019. General staffing associate employee headcount has grown to ~165,030 and NETAP trainee headcount has declined to ~51,340 as of September 30, 2019.

5. Average realization per associate in general staffing has improved to Rs.739 p.m. in Q2FY20 from Rs.730 p.m. in Q1FY20.

6. We have maintained our funding exposure at 14% in general staffing business over the last one year.

Management Comment

Mr. Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly results said, “General staffing has maintained the momentum on steady headcount growth and has visibility to sustain growth going forward. NETAP faced headwinds in the sectoral play with trainees in manufacturing/auto sector being impacted. HR services cluster has shown improved collections and profitability”.

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Press Release- Q2 FY20

About TeamLease Services Limited

TeamLease Services is one of India’s leading human resource companies offering a range of solutions to 3500+ employers for their hiring, productivity and scale challenges. A Fortune India 500 company listed on the NSE & BSE, TeamLease has hired 17 lakhs people over the last 17 years and has 2 lakhs+ open jobs every day. One of India’s fastest growing employers, TeamLease also operates India’s first Vocational University and India’s fastest growing PPP National Employability through Apprenticeship Program. The Company offers solutions to large, medium and small clients across the 3Es of employment (1.6 lakhs+ employees), employability (2 lakhs+ students) and Ease-of-doing Business (1000+ employers).

Investor contact

Ravi Vishwanath	Renu Praveen
Chief Financial Officer	Adfactors
Tel: +91 80 3324 3330	Tel: +91 9742279654
Fax: +91 80 3324 3001	Fax: +91 80 3324 3001
E-mail:ravi.vishwanath@teamlease.com	E-mail:renu.praveen @adfactorspr.com