TeamLease shares fall 4% after Q1FY25 net profit declines to ₹20.79 crore

By Aditya Bhagchandani Published on August 1, 2024, 10:17 IST

TeamLease Services saw its shares fall by over 4% on Wednesday after reporting quarterly results that missed expectations. The decline was attributed to rising expenses and weaker demand in its specialized IT staffing sector.

Q1 FY25 Financial Highlights

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Net Profit: Dropped 21.3% year-on-year to ₹20.79 crore ($2.48 million), falling short of analysts’ estimates of ₹24.17 crore.
Expenses: Increased by 19% to ₹2,574 crore, driven by salary hikes and higher employee benefits costs.
Revenue from IT Staffing: Rose by 3.6%.
Revenue from General Staffing: Increased by 20%.

Sector Impact

IT Staffing Business: Experienced slower growth due to reduced hiring by IT companies amidst economic uncertainty and cuts in non-essential tech projects.
General Staffing: Showed stronger performance with significant revenue growth.

Market Performance

Shares Trading: As of 10:13 AM, TeamLease shares were trading 4% lower at ₹3,376.60 on the NSE.

Aditya Bhagchandani

Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.