TeamLease Services Limited — Earnings Release 2020

Jun 9, 2020

June 09, 2020

To	To
Listing Department	Listing Department
BSE Limited,	National Stock Exchange of India Limited,
Phiroze Jeejeebhoy Towers,	Exchange Plaza, 5th Floor,
Dalal Street, Fort,	Plot no. C/1, G Block,
Mumbai - 400 001	Bandra Kurla Complex, Bandra(E),
	Mumbai - 400 051
Scrip Code: 539658	Scrip Code: TEAMLEASE

Dear Sir/Madam,

Sub: Press Release of TeamLease Services Limited (TeamLease/the Company) pertaining to the Audited Financial Results (Standalone and Consolidated) for the year ended March 31, 2020

With reference to the captioned subject, please find enclosed Press Release of TeamLease Services Limited pertaining to the Audited Financial Results (Standalone and Consolidated) for the year ended March 31, 2020.

Kindly take the above said information on record as per the requirement of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Thanking You Yours faithfully, For T am Lease Se ces Limited

Alaka Chanda Company Secretary and Complian Encl: As above

Press Release- Q4 FY20

Bengaluru, India, June 09, 2020- TeamLease Services Limited (NSE: TEAMLEASE, BSE: 539658), one of India's largest staffing companies, today announced its results for the fourth quarter (Q4FY20) and for the financial year ended March 31, 2020.

Summary of Consolidated financial results:

(all numbers in Rupees' Crores except Margins)

Particulars	Q4FY20	Q4FY19	YoYGrowth %	Q3FY20	QoQGrowth %	FY20	FY19	YoYGrowth %
Total Revenue	1,345.0	1,168.6	15%	1,358.7	-1%	5,231.6	4,465.7	17%
Operating Revenue	1,330.3	1,163.4	14%	1,351.4	-2%	5,200.7	4,447.6	17%
EBITDA	19.6	25.5	-23%	27.1	-27%	93.0	94.1	-1%
EBITDA margin	1.5%	2.2%		2.0%		1.8%	2.1%
PBT	22.4	26.8	-17%	23.9	-7%	83.0	96.4	-14%
PBT margin	1.7%	2.3%		1.8%		1.6%	2.2%
Net Profit (PAT)	(29.4)	26.0	-213%	25.5	-216%	35.0	98.0	-64%
PAT margin	-2.2%	2.2%		1.9%		0.7%	2.2%
EPS (Basic and Diluted) - Rs.	-17.2	15.2	-213%	14.9	-216%	20.5	57.3	-64%

Highlights of Q4FY20 performance:

• 1. Revenue grew by 17% YoY. Our total employee/ trainee headcount increased by ~4000 on YoY basis and as at March 31, 2020 was ~220,000 compared to ~216,000 on March 31, 2019.
• 1. Average realization per associate in general staffing has improved to Rs.748 p.m. in Q4FY20 from Rs.714 p.m. in Q4FY19.
• 1. We have continued to maintain our funding exposure at 14% in general staffing business over the last 24 months.
• 1. TL.com, the technology enabler of hiring in the Staffing business, went live during FY20 and contributed to 20% of the total hiring in the Staffing business for the quarter. Hiring from TL.com is expected to grow to 40% by end of FY21.
• 1. The Company has created an additional provision across P&L's of Rs. 6.2 cr out of abundant caution on account of the current situation.
• 1. FY20 Profit after Tax includes one-time non-cash charge i.e. Minimum Alternate Tax credit of ₹ 49.6 crores on account of the Company adopting and moving to the new tax regime.

Press Release- Q4 FY20

Management Comment

Mr. Ashok Reddy, Managing Director, TeamLease Services Limited commenting on the quarterly results said, "We are currently going through unprecedented times and have thus far managed the situation reasonably well, whether be it in terms of connect with our clients, employees and other stakeholders. We are optimistic at the prospects of growth reviving and do believe that the formal staffing industry would stand to gain from the economy opening up and simplification of labour laws. We also believe that some of the businesses we have acquired like SchoolGuru and Avantis would be able to capitalize on the opportunities arising out of the current situation. We have utilized the lockdown period to be more efficient, the results of which should flow into the future."

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 6824 3330	Tel: +91 9742279654
Fax: +91 80 6824 3001	Fax: +91 80 3324 3001
E-mail: ravi.vishwanath@teamlease.com	E-mail: renu.praveen @adfactorspr.com