TEAMLEASE SERVICES 2021-22 Annual Report Analysis

Tue, 23 Aug

TEAMLEASE SERVICES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

TEAMLEASE SERVICES Income Statement Analysis

• Operating income during the year rose 32.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 6.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.0% in FY22 as against 1.4% in FY21.
• Depreciation charges increased by 21.0% and finance costs decreased by 42.5% YoY, respectively.
• Other income declined by 58.3% YoY.
• Net profit for the year declined by 50.4% YoY.
• Net profit margins during the year declined from 1.6% in FY21 to 0.6% in FY22.

TEAMLEASE SERVICES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	48,815	64,798	32.7%
Other income	Rs m	608	254	-58.3%
Total Revenues	Rs m	49,423	65,052	31.6%
Gross profit	Rs m	694	650	-6.4%
Depreciation	Rs m	337	408	21.0%
Interest	Rs m	69	40	-42.5%
Profit before tax	Rs m	896	456	-49.2%
Tax	Rs m	101	61	-39.3%
Profit after tax	Rs m	796	395	-50.4%
Gross profit margin	%	1.4	1.0
Effective tax rate	%	11.2	13.4
Net profit margin	%	1.6	0.6

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TEAMLEASE SERVICES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 7 billion as compared to Rs 5 billion in FY21, thereby witnessing an increase of 26.3%.
• Current assets rose 19% and stood at Rs 10 billion, while fixed assets rose 15% and stood at Rs 5 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 15 billion as against Rs 13 billion during FY21, thereby witnessing a growth of 18%.

TEAMLEASE SERVICES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	6,501	6,896	6.1
Current Liabilities	Rs m	5,478	6,921	26.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	13,058	15,378	17.8
Current assets	Rs m	8,299	9,886	19.1
Fixed Assets	Rs m	4,760	5,492	15.4
Total Assets	Rs m	13,058	15,378	17.8

TEAMLEASE SERVICES Cash Flow Statement Analysis

• TEAMLEASE SERVICES 's cash flow from operating activities (CFO) during FY22 stood at Rs -61 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs -885 million, an improvement of 621.5% on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -131 million, an improvement of 71% on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -1 billion from the Rs 2 billion net cash flows seen during FY21.

TEAMLEASE SERVICES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	3,033	-61	-
Cash Flow from Investing Activities	Rs m	-123	-885	-
Cash Flow from Financing Activities	Rs m	-444	-131	-
Net Cash Flow	Rs m	2,467	-1,077	-

Current Valuations for TEAMLEASE SERVICES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 23.1, an decline from the EPS of Rs 46.5 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,382.4, stands at 148.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 8.4 times, while the price to sales ratio stands at 0.9 times.
• The company's price to cash flow (P/CF) ratio stood at 88.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	2,854.7	3,789.4
TTM Earnings per share	Rs	46.5	23.1
Diluted earnings per share	Rs	46.5	23.1
Price to Cash Flow	x	56.8	88.6
TTM P/E ratio	x	80.9	148.1
Price / Book Value ratio	x	6.9	10.3
Market Cap	Rs m	45,033	71,134
Dividends per share (Unadj.)	Rs	0.0	0.0

Ratio Analysis for TEAMLEASE SERVICES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 1.4x during FY22, from 1.5x during FY21. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 12.5x during FY22, from 14.0x during FY21. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company declined and down at 5.7% during FY22, from 12.2% during FY22. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company declined and down at 7.2% during FY22, from 14.8% during FY21. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company declined and down at 2.8% during FY22, from 6.6% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	1.5	1.4
Debtors’ Days	Days	208	208
Interest coverage	x	14.0	12.5
Debt to equity ratio	x	0.0	0.0
Return on assets	%	6.6	2.8
Return on equity	%	12.2	5.7
Return on capital employed	%	14.8	7.2

To see how TEAMLEASE SERVICES has performed over the last 5 years, please visit here.

TEAMLEASE SERVICES Share Price Performance

Over the last one year, TEAMLEASE SERVICES share price has moved down from Rs 3,952.2 to Rs 3,382.4, registering a loss of Rs 569.9 or around 14.4%.

Overall, the S&P BSE SENSEX is up 6.7% over the year.

(To know more, check out historical annual results for TEAMLEASE SERVICES and quarterly results for TEAMLEASE SERVICES )

Read: Latest Annual Report Analysis of TEAMLEASE SERVICES