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TEAMLEASE SERVICES 2022-23 Annual Report Analysis
Fri, 31 Mar

TEAMLEASE SERVICES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

TEAMLEASE SERVICES Income Statement Analysis

  • Operating income during the year rose 21.5% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 81.2% YoY during the fiscal. Operating profit margins witnessed a fall and down at 1.5% in FY23 as against 1.0% in FY22.
  • Depreciation charges increased by 5.8% and finance costs increased by 43.5% YoY, respectively.
  • Other income grew by 82.0% YoY.
  • Net profit for the year grew by 182.7% YoY.
  • Net profit margins during the year grew from 0.6% in FY22 to 1.4% in FY23.

TEAMLEASE SERVICES Income Statement 2022-23

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Net Sales Rs m 64,798 78,700 21.5%
Other income Rs m 254 462 82.0%
Total Revenues Rs m 65,052 79,162 21.7%
Gross profit Rs m 650 1,177 81.2%
Depreciation Rs m 408 432 5.8%
Interest Rs m 40 57 43.5%
Profit before tax Rs m 456 1,150 152.5%
Tax Rs m 61 35 -43.0%
Profit after tax Rs m 395 1,116 182.7%
Gross profit margin % 1.0 1.5
Effective tax rate % 13.4 3.0
Net profit margin % 0.6 1.4
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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TEAMLEASE SERVICES Balance Sheet Analysis

  • The company's current liabilities during FY23 stood at Rs 8 billion as compared to Rs 7 billion in FY22, thereby witnessing an increase of 9.3%.
  • Current assets rose 11% and stood at Rs 11 billion, while fixed assets rose 21% and stood at Rs 7 billion in FY23.
  • Overall, the total assets and liabilities for FY23 stood at Rs 18 billion as against Rs 15 billion during FY22, thereby witnessing a growth of 15%.

TEAMLEASE SERVICES Balance Sheet as on March 2023

No. of Mths Year Ending 12 Mar-22* 12 Mar-23* % Change
Networth Rs m 6,896 8,035 16.5
 
Current Liabilities Rs m 6,921 7,566 9.3
Long-term Debt Rs m 0 0 0.0
Total Liabilities Rs m 15,378 17,610 14.5
 
Current assets Rs m 9,886 10,980 11.1
Fixed Assets Rs m 5,492 6,630 20.7
Total Assets Rs m 15,378 17,610 14.5
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



TEAMLEASE SERVICES Cash Flow Statement Analysis

  • TEAMLEASE SERVICES 's cash flow from operating activities (CFO) during FY23 stood at Rs 1 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY23 stood at Rs -1 billion, an improvement of 39.2% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY23 stood at Rs -244 million on a YoY basis.
  • Overall, net cash flows for the company during FY23 stood at Rs -213 million from the Rs -1 billion net cash flows seen during FY22.

TEAMLEASE SERVICES Cash Flow Statement 2022-23

Particulars No. of months 12 12 % Change
Year Ending Mar-22 Mar-23
Cash Flow from Operating Activities Rs m -61 1,262 -
Cash Flow from Investing Activities Rs m -885 -1,232 -
Cash Flow from Financing Activities Rs m -131 -244 -
Net Cash Flow Rs m -1,077 -213 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Current Valuations for TEAMLEASE SERVICES

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 65.2, an improvement from the EPS of Rs 23.1 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 2,235.5, stands at 33.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 4.7 times, while the price to sales ratio stands at 0.5 times.
  • The company's price to cash flow (P/CF) ratio stood at 35.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-22* 12 Mar-23*
Sales per share (Unadj.) Rs 3,789.4 4,602.3
TTM Earnings per share Rs 23.1 65.2
Diluted earnings per share Rs 23.5 66.5
Price to Cash Flow x 90.6 35.8
TTM P/E ratio x 184.2 33.6
Price / Book Value ratio x 10.3 6.9
Market Cap Rs m 71,134 55,322
Dividends per share (Unadj.) Rs 0.0 0.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



Ratio Analysis for TEAMLEASE SERVICES

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 1.5x during FY23, from 1.4x during FY22. 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 improved and stood at 21.2x during FY23, from 12.5x during FY22. 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 improved and stood at 13.9% during FY23, from 5.7% during FY23. 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 improved and stood at 15.0% during FY23, from 7.2% during FY22. 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 improved and stood at 6.7% during FY23, from 2.8% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-22* 12 Mar-23*
Current ratio x 1.4 1.5
Debtors’ Days Days 208 176
Interest coverage x 12.5 21.2
Debt to equity ratio x 0.0 0.0
Return on assets % 2.8 6.7
Return on equity % 5.7 13.9
Return on capital employed % 7.2 15.0
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Accord Fintech, Equitymaster



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 4,333.6 to Rs 2,235.5, registering a loss of Rs 2,098.2 or around 48.4%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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

Annual Report FAQs

What is the current share price of TEAMLEASE SERVICES ?

TEAMLEASE SERVICES currently trades at Rs 3,248.8 per share. You can check out the latest share price performance of TEAMLEASE SERVICES here...

What was the revenue of TEAMLEASE SERVICES in FY23? How does it compare to earlier years?

The revenues of TEAMLEASE SERVICES stood at Rs 79,162 m in FY23, which was up 21.7% compared to Rs 65,052 m reported in FY22.

TEAMLEASE SERVICES 's revenue has grown from Rs 44,660 m in FY19 to Rs 79,162 m in FY23.

Over the past 5 years, the revenue of TEAMLEASE SERVICES has grown at a CAGR of 15.4%.

What was the net profit of TEAMLEASE SERVICES in FY23? How does it compare to earlier years?

The net profit of TEAMLEASE SERVICES stood at Rs 1,116 m in FY23, which was up 182.7% compared to Rs 395 m reported in FY22.

This compares to a net profit of Rs 785 m in FY21 and a net profit of Rs 350 m in FY20.

Over the past 5 years, TEAMLEASE SERVICES net profit has grown at a CAGR of 3.3%.

What does the cash flow statement of TEAMLEASE SERVICES reveal?

The cash flow statement is the financial statement that presents the cash inflows and outflows of a company during a given period of time.

This statement is one of the most useful tools for judging a company's liquidity position. The ratios and parameters in this statement helps test a company's financial health.

The cash flow statement of TEAMLEASE SERVICES reveals:

  • Cash flow from operations increased in FY23 and stood at Rs 1,262 m as compared to Rs -61 m in FY22.
  • Cash flow from investments decreased in FY23 and stood at Rs -1,232 m as compared to Rs -885 m in FY22.
  • Cash flow from financial activity decreased in FY23 and stood at Rs -244 m as compared to Rs -131 m in FY22.

Here's the cash flow statement of TEAMLEASE SERVICES for the past 5 years.

(Rs m)FY19FY20FY21FY22FY23
From Operations-124973,033-611,262
From Investments18-473-123-885-1,232
From Financial Activity-61-1-444-131-244
Net Cashflow-167-3772,467-1,077-213

What does the Key Ratio analysis of TEAMLEASE SERVICES reveal?

Be it the company's profitability, operations effectiveness or utilization of funds, ratio analysis is an important tool which helps in making investment decisions.

The ratio/financial analysis of TEAMLEASE SERVICES reveals:

  • Operating profit margins witnessed a fall and down at 1.5% in FY23 as against 1.0% in FY22.
  • Net profit margins grew from 0.6% in FY22 to 1.4% in FY23.
  • Debt to Equity ratio for FY23 stood at 0.0 as compared to 0.0 in FY22.

Here's the ratio/financial analysis of TEAMLEASE SERVICES for the past 5 years.

 FY19FY20FY21FY22FY23
Operating Profit Margin (%)2.11.71.41.01.5
Net Profit Margin (%)2.20.71.60.61.4
Debt to Equity Ratio (x)0.00.00.00.00.0

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