Four Directors at TeamLease Services Ltd sold 89,535 shares at 3,050.000INR. The significance rating of the trade was 67/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two ye...
Valuations remain full, retain our Neutral rating Revenue rose 3.4% QoQ, led by General staffing (up 4%), while Other HR Services (down 2.7%) and Specialized Staffing (down 1.5%) dipped in 1QFY23. It added ~9k associates, despite a decline of 5k associates in NETAP, indicating a strong demand environment. EBITDA margin (at 1.34%) was a large miss, down 90bp QoQ and 80bp YoY v/s our expectation of a 30bp decline, driven by salary increases, investment in the core team, and the impact from Ind ...
TEAMLEASE: Valuation factoring in long term growth potential (TEAM IN, Mkt Cap USD1.1b, CMP INR4658, TP INR4320, 7% Downside, Downgrade to Neutral) Demand outlook remains favorable, but margin pickup to take time TEAM delivered a strong operational performance in 2QFY22, with revenue up 10.7% QoQ on broad based growth across all three verticals. It also added 25k associates (record high) in 2Q, benefitting from a strong demand environment as well as seasonality and flow through from a CO...
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
TEAMLEASE: Expect a strong business recovery in FY22 (TEAM IN, Mkt Cap USD0.9b, CMP INR3757, TP INR4200, 12% Upside, Buy) TEAM’s operating performance was a beat on our estimates, with total revenue increasing 2.7% QoQ. Revenue growth was led by 17%/22% QoQ growth in Specialized Staffing/Other HR Services, offset by a 1% growth in the General Staffing business. Margin in 1QFY22 inched up by 20bp QoQ to 2.1%, led by strong growth in the Specialized Staffing business and partial reversal in...
Q3FY20 result highlights Cons. rev. fell ~7% qoq/~15% yoy to ~Rs13.5bn (3% beat). General Staffing business grew ~7% qoq (3% beat), while Specialized Staffing grew ~4% qoq (2% beat – driven by IMSI consolidation). EBITDA grew 12% qoq/yoy to ~Rs275m (in-line). Higher Depreciation/Interest (post Ind-AS 116) meant that PAT was flat at ~Rs255m, but still was a ~20% beat due to higher other income (~Rs20m one-time element in OI). General Staffing: Associate base grew +2.2k qoq (IDFCe: 4.5k) to ~1...
Q2FY20 result highlights Cons. rev. grew 1% qoq/16% yoy (5% miss) led by 17% yoy growth in General Staffing and eCentric consolidation in Specialized Staffing. However, there was a margin miss across both General staffing and HR Services segments which led to EBITDA posting a growth of just 2% yoy to Rs245m (24% miss). Margin fell by 27bps yoy to 1.93% (est.: 2.42%). PAT fell 19% yoy to ~Rs202m (28% miss). General Staffing: Associate base grew +4.4k qoq (IDFCe: 5k) to ~165k (+14% yoy). Reven...
TEAMLEASE SERVICES: Muted quarter, provisioning far sighted; Miss on all frontsTEAMLEASE SERVICES: Muted quarter, provisioning far sighted; Miss on all fronts(TEAM IN, Mkt Cap USD0.7b, CMP INR2781, TP INR3330, 20% Upside, Buy)** 2QFY20 revenue at INR12.7b grew 16.2% YoY (v/s est. 23.5%) while EBITDA at INR245m grew 2% YoY (v/s est. 49%). PAT at INR202m declined 20.1% YoY (v/s est. +28%). ** General staffing associates grew by 4,415 QoQ (14% YoY) to 165,029, below our est. of 7,700 additions QoQ....
Q1FY20 result highlights Cons. rev. grew 8% qoq/23% yoy (2% beat) on strong performance in General Staffing and eCentric consolidation in Specialized Staffing. However, weak performance in HR Services (including ~Rs60m provision) meant that reported EBITDA fell 10% qoq/+15% yoy (15% miss; margins at 1.85%). Adjusted EBITDA (excl. Ind-AS 116 impact) stood at ~Rs264m (~3% qoq/31% yoy; 3% miss). Reported PAT fell ~28% qoq/~14% yoy to ~Rs188m (30% miss). Adjusted PAT (ex. provision/excl. Ind-AS 1...
Q1FY20 result highlights Cons. rev. grew 8% qoq/23% yoy (2% beat) on strong performance in General Staffing and eCentric consolidation in Specialized Staffing. However, weak performance in HR Services (including ~Rs60m provision) meant that reported EBITDA fell 10% qoq/+15% yoy (15% miss; margins at 1.85%). Adjusted EBITDA (excl. Ind-AS 116 impact) stood at ~Rs264m (~3% qoq/31% yoy; 3% miss). Reported PAT fell ~28% qoq/~14% yoy to ~Rs188m (30% miss). Adjusted PAT (ex. provision/excl. Ind-AS 1...
TEAMLEASE SERVICES: Profitability below estimate; Impacted by delay in collections worth INR60m (TEAM IN, Mkt Cap USD0.7b, CMP INR2808, TP INR3350, 19% Upside, Buy) Profitability impacted by provisioning in 'Other HR Services' 1QFY20 revenue grew 22.5% YoY (v/s est. of 20.8%). EBIT declined 2% YoY to INR171m (v/s est. of 42% growth) and PAT declined 12% YoY (v/s est. of 32% YoY growth). EBIT and PAT were impacted by profitability in 'Other HR Services', where the company created a provi...
TeamLease Services: Volume growth and its operating leverage continues (TEAM IN, Mkt Cap USD0.7b, CMP INR2987, TP INR3550, 19% Upside, Buy) Revenue growth misses estimate; net margins improve 4QFY19 revenues at INR11.6b grew 19% YoY (below our est. of +24.2% YoY); EBITDA at INR257m grew 13% YoY (nearly in line with our est. of +15% YoY); PAT at INR260m grew 20.8% YoY (v/s est. of +16.4% YoY). For FY19, revenue/EBITDA/PAT grew 22.7%/37%/33.5% YoY. General Staffing Associates grew by 1,40...
Q4FY19 result highlights Cons. rev. fell ~1% qoq (but grew 19% yoy; 5% miss) mainly due to lower than expected associate count additions in General Staffing segment. EBITDA grew 13.1% yoy/4.9% qoq to ~Rs257m (7% miss), while margins came in at 2.21% (vs est. 2.24% on lower than est. margins in Specialized Staffing/Other HR Services). PAT grew 22.7% yoy (3% qoq) to ~Rs260m (5% miss; in-line with EBITDA miss). General Staffing: Associate base stood at ~154k (added 1.4k net associates’ in this ...
TeamLease Services: TeamLease to acquire IT staffing biz of eCentric Solutions (TEAM IN, Mkt Cap USD0.7b, CMP INR2794, TP INR3400, 22% Upside, Buy) TeamLease Services (TEAM) has announced the acquisition of eCentric Solutions’ IT staffing business, which has 880 associates and revenue of INR450m (as of FY18). The company will pay 4.5x PBT (~INR150-180m) or the acquisition through its subsidiary TL Digital by way of slump sale on a going-concern basis. The consideration will be payable in tw...
Q3FY19 result highlights Cons. rev. grew 27.7% yoy/7.5% qoq to ~Rs11.7bn (2% beat), mainly due to strong volume growth in General Staffing segment. EBITDA grew 37.1% yoy to Rs245m (4% miss, due to weakness in Telecom staffing and higher provisions in Other HR Services segment). PAT grew 37.3% yoy to Rs253m (2% miss – in-line with EBITDA miss, partly supported by lower than exp. tax outgo). General Staffing: Associate base stood at ~152.7k (added 7.5k net associates’ vs 5k est) and grew by 16...
TeamLease Services: Volume growth, through large clients; at a small cost (TEAM IN, Mkt Cap USD0.6b, CMP INR2548, TP INR3300, 30% Upside, Buy) Strong revenue beat; but margins lower in non-general staffing TEAM's 3QFY19 Revenue at INR11.7b grew by 28% YoY (exp. of +22% YoY); EBITDA at INR245m grew by 37% YoY (exp. of +44% YoY); PAT at INR255m grew by 39% YoY (exp. of +46% YoY) General staffing associates grew by 7,548 QoQ, +5.2% QoQ and 16.6% YoY to 152,693, above our estimate of 5,000 add...
Q2FY19 result highlights Cons. rev. grew 24.6% yoy/6.8% qoq to ~Rs10.9bn (2% beat), on the back of HR services. EBITDA grew 58.7% yoy to Rs240m (6% beat) on better margin, especially on the HR services front. PAT beat of 7% at Rs249m (+43.1% yoy) was due to strong operating performance. General Staffing: Associate base stood at ~145.1k (added 7.4k net associates’ vs 6k est) and grew by 13.5% yoy. Rev. came in at ~Rs9.8bn (+17.0% yoy; 2% beat). EBITDA margin came in at 1.88% (+15bps yoy, +18b...
TEAMLEASE SERVICES: Sharp comeback in staffing (TEAM IN, Mkt Cap USD0.6b, CMP INR2557, TP INR3500, 37% Upside, Buy) Strong headcount growth: Revenue for TeamLease (TEAM) grew by 25% YoY to INR10.9b, (2.5% ahead of estimate) with strength seen across segments. General Staffing was up 17% YoY, Specialized Staffing was up 182% YoY and Other HR Services was up by 175% YoY. Coming out of a soft FY18, 1Q saw a sharp revival in headcount growth, and this further accelerated in 2Q. Net addition w...
Q1FY19 result highlights General Staffing: Associate base stood at ~137.7K (added strong 5.4K net associates’ vs exp. of 5.7K) and grew by 6.1% yoy. Rev. came in at ~Rs9.16bn (+12.2% yoy; in line). EBITDA margin came in at 1.7% (+7 bps yoy, -13bp qoq; 15bps below est. as mark-up fell from Rs755 to Rs736 qoq). Fall in mark-up (and margin) is attributable to decrease in funded contracts (down to 16% from 20%) as TEAM did not mind quoting lower mark-up as it was saving on WC requirement. Manage...
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