TeamLease Q1 net profit drops 25% YoY to Rs 19 crore

Teamlease also witnessed a net headcount loss with IT services clients in Q1FY25 on the back of the global headwinds in the IT industry. (Photo:Pexels)

Teamlease, the recruitment major, announced its results for Q1FY25 on July 31st. According to the stock exchange filing, Teamlease posted a quarterly profit of Rs 19 crore, which is a 25 per cent slump on YoY. The operating revenue rose to Rs 2,580 YoY.

In terms of general staffing, the company saw 15,500 headcount in Q1FY25 taking the total billable headcount to 2.82 lakhs. On EBITDA decline, the company said that it was majorly due to 'seasonality' and delayed university billing in EdTech business.

The company also witnessed a net headcount loss with IT services clients in Q1FY25 on the back of the global headwinds in the IT industry.

Last week, the company's shares recorded a spike of 10 per cent after the Union Budget announcements. In her first full Union Budget of Modi 3.0, Finance Minister Nirmala Sitharaman had announced a slew of measures to boost jobs in the country. skilling package for 20 lakh youth for the next five years, upgradation of 1,000 ITIs and a mega internship programme for youth in top 500 companies.

"The recent union budget with the proposed initiatives around employment and employability is a welcome enabler for our long-term objective of Putting India to Work. Coupled with the implementation of Labour Codes, we believe these initiatives will drive up formalisation and productivity of the workforce in the coming years," Ashok Reddy, Managing Director, TeamLease said.

"While the billing cycle in EdTech business has impacted the Q1 profitability, with the current signup of universities and students, we are confident of posting as substantial growth in both  revenues and profitability of EdTech business this year," Reddy added.