Staffing company TeamLease Services today posted 45 per cent decline in profit after tax for the quarter ended March 31, 2018 at ₹ 21.2 crore compared to the same period last year. The company’s PAT stood at ₹38.4 crore in the corresponding quarter of 2016-17.
The decline was attributed to the full FY17 impact of 80JJAA benefits in the fourth quarter of FY17.
Section 80JJAA provides incentive in form of deduction of 30 per cent of the salary paid to additional employees hired for three consecutive years.
TeamLease Services revenue during the fourth quarter of FY18, grew by 20 per cent to ₹ 977.5 crore compared to ₹ 817 crore in the same quarter of the previous financial year.
The company’s PAT for FY18 grew by 28 per cent to ₹ 73.5 crore compared to ₹ 57.6 crore in the previous financial year.
PAT for the year is positively impacted by the deferred tax benefits availed from the recently acquired subsidiaries, it added.
Revenue for the year grew by 19 per cent to ₹ 3,624.1 crore compared to ₹ 3,041.3 crore in FY17.
“We continue to deliver another strong quarter with consistent revenue growth and sustainable margin expansion. We have forayed into digital space through acquisitions of Freshers World and Schoolguru this year. We remain confident of sustaining the margin expansion through scale and transformation while holding ourselves to our primary metrics of return on capital and cashflow generation,” TeamLease Services Managing Director Ashok Reddy said.
TeamLease Services have more than 1,82,000 employees or trainees with over 2,250 clients across 6,600 locations in India.
The company’s stock was up 0.41 per cent, closing at Rs 2,763.75 on the BSE today.