TeamLease Services Limited announced the transcript of its Q4 FY25 earnings call held on 21 May 2025.
Ashok Reddy, MD & CEO, mentioned a mixed performance with 25,000 headcount added in staffing and 2,500 in DA, despite headwinds.
Specialized Staffing saw a net headcount reduction, but EBITDA stability was maintained through revenue mix.
Revenues grew 20% year-on-year, EBITDA grew 6%, and PBT remained flat, influenced by a transition from higher-margin DA businesses to NAPS and flat specialized staffing.
Karthik Narayan highlighted strong growth in the first half of FY25, tempered by sectoral headwinds and macro uncertainties in the second half.
General staffing added 25,000 net headcount, a 9% increase, with 37% from new client acquisitions. Revenue grew 21% year-on-year, and EBITDA grew 4%.
Regulatory changes in the BFSI sector led to a loss of 7,000 associates in Q4, though revenue increased 17% year-on-year.
Consumer business revenue grew over 37%, e-commerce and quick commerce grew 29%, while telecom and BFSI had more muted growth at 8%.
Over 140 new logo sign-ups occurred, with 75% on variable markup for Q4 and 71% for the full year.
80,000 new hires were made, with 20% through non-recruital channels and 30% being first-time employees.
FTE reduced marginally to 378 due to associate headcount tapering off in Q4, seen as a structural shift.
Neeti Sharma noted challenges in the IT hiring landscape but highlighted a focus on specialized skills, newer delivery models, and global expansion.
Recruitment productivity improved by 11% year-on-year, and PAPM realization grew by 16% year-on-year.
PBT margin improved from 6.2% in FY24 to 6.7% in FY25 through cost management and optimized resource allocation.
The GCC business contributed approximately 40% to associate headcount and 60% to net revenue.
35 new clients were onboarded, contributing nearly ₹19 crore in annualized revenue.
The integration of Ikigai was completed.
Ramani Dathi reported a net addition of 27,000 billable headcount in FY25, with a dip of 8,000 in Q4.
Staffing maintained flattish EBITDA sequentially, absorbing ₹1.5 crore impact from BFSI attrition in Q4.
Acquisitions contributed about ₹1 crore in EBITDA in Q4. Approximately ₹40 crore was invested for acquisitions, leaving a free cash balance of ₹310 crore as of 31 March 2025.
Income tax assessments have been completed until assessment year 2024.
Management expects revenue growth to translate into EBITDA growth in FY26, driven by productivity and cost optimization.