India's TeamLease posts 14% rise in Q4 profit on general staffing strength

Teamlease Services

22/05/2024 11:39

BENGALURU, May 22 (Reuters) - India's TeamLease Services  TLSV.NS 
reported a 14.8% rise in fourth-quarter profit on Wednesday, led by growth in
its general staffing business.
    The company said consolidated net profit came in at 274.8 million rupees
($3.30 million) for the three months ended March 31.
    Total revenue rose 20% to 24.32 billion rupees ($292.07 million), with the
company's general staffing business that accounts for roughly 92% of the total,
up 21%. 
    Revenue from its specialised IT staffing business increased 4.7%, compared
with a 12.3% rise in the previous quarter.
    Staffing solutions providers have been impacted by companies in the
information technology sector slowing down hiring. For the financial year 2024,
India's top IT companies reported either a net decline in headcount on a
year-on-year basis or a small increase.
    TeamLease said that headwinds in the IT industry "continued to impact the
growth and profitability in specialised staffing".
    The $254-billion Indian IT industry has been grappling with weak client
demand and falling discretionary spending amid inflationary pressures and
recessionary concerns, after gaining immensely from the pandemic-induced boom.
    General staffing business revenue increased on the back of strong hiring in
the fast moving consumer durables, retail, e-commerce and telecom sectors, the
company said. 
    "While we have had a slight setback on BFSI (banking, financial services,
and insurance) hiring for the past few months, the outlook from the second
quarter of FY25 is shaping up well," said Managing Director Ashok Reddy.
    Teamlease's shares rose as much as 8.1% after the results before closing
3.2% higher.
    
($1 = 83.2688 Indian rupees)

 (Reporting by Haripriya Suresh; Editing by Sohini Goswami)
 ((Haripriya.Suresh@thomsonreuters.com;))