Overview of company:

Teamlease is one of India’s leading providers of human resource services in the organized
segment delivering a broad range of human resource services to various industries with a
vision of putting India to work. They deliver a broad range of human resource services to
various industries and diverse functional roles across India to meet the needs of small and
large business clients as well as those of qualified job seekers or “Associate Employees”.
Their services span the entire supply chain of human resources in India, covering aspects
of employment, employability and education and employment services include temporary
staffing solutions, permanent recruitment services and regulatory consultancy for labor
law compliance; their employability offerings include different types of learning and
training solutions, including retail learning solutions, institutional learning solutions and
enterprise learning solutions.

Their have provided services under their core TeamLease brand for over 15 years that has
resulted in providing temporary staffing to the functional areas across industries. They
provide retail training services under the IIJT brand. Their experience and expertise allow
them to accurately assess candidates’ workplace potential and technical skills to match
them to the needs of their clients. They operate through nine branch offices in India, in
Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune.

Financial Statements:

INCOME STATEMENT ( IN CRORES )

2020- 2022-
Particulars 2018-19 2019-20 2021 2021-22 2023
Income
4,447.6 5,200.7 6,479.8
Revenue from operations 0 2 4,881.46 2 7,869.99
Other income 18.06 30.84 34.72 19.73 43.95
4,465.6 5,231.5 6,499.5
Total income 6 7 4,916.18 5 7,913.94
Expenses
4,197.1 4,936.4 6,180.7
Employee benefits expense 5 8 4,686.98 3 7,569.81
Profit before Finance Cost and Taxes 268.51 295.09 229.20 318.82 344.13
Finance costs 5.22 12.29 6.90 3.97 5.69
Depreciation and amortization expense 10.51 28.59 33.71 40.79 43.16
Other expenses 156.00 169.15 95.97 156.72 177.92
4,368.8 5,146.5 6,382.2
Total expenses 9 1 4,823.55 1 7,796.58

Profit before share of profit/ (loss) from associate/

joint venture, exceptional items and tax 96.78 85.06 92.62 117.34 117.36
Share of loss from associate and joint venture -0.36 -2.09 -1.09 0.00
Profit before exceptional items and tax 96.41 82.97 91.54 117.34 117.36
Exceptional items 0.00 0.00 -3.00 -71.78 -2.33
Profit before tax 96.41 82.97 88.54 45.56 115.03
Tax expense:
Current tax 23.40 2.00 2.54 3.34 6.41
Tax provision for earlier years 1.28 0.65 1.55 -0.05 0.70
Deferred tax
Minimum Alternate Tax (MAT) credit -22.03 49.64 -0.08 0.00 0.00
Deferred tax charge -4.27 -4.28 6.06 2.82 0.00
Income tax expense -1.62 48.00 10.06 6.11 7.11
Net Profit for the year 98.03 34.98 78.47 39.45 107.92
Net Profit for the year 98.03 34.98 78.47 39.45 107.92
Attributable to:
Owners of the parent company 0.00 34.98 77.50 38.43 111.34
Non-controlling interest 0.00 0.00 0.97 1.03 0.21
Other comprehensive income
Items that will not be reclassified to profit or loss
in subsequent periods
Re-measurement (losses)/gains on defined benefit
plans 0.34 0.39 1.97 -0.19 1.67
Income tax effect -0.10 -0.10 -0.50 0.06 -0.40

Other comprehensive (loss)/income, net of tax 0.23 0.29 1.48 -0.13 1.27
Attributable to:
Owners of the parent company 0.29 1.47 -0.04 1.21
Non-controlling interest 0.00 0.01 -0.09 0.06
Total comprehensive income for the year, net of
tax 98.26 35.26 79.95 39.33 109.19
Attributable to:
Owners of the parent company 35.26 78.97 38.39 112.55
Non-controlling interest 0.00 0.98 0.94 0.27
Earnings per equity share:
Basic and diluted (amount in RS) 0.57 0.20 0.45 0.22 65.12
3,169.9 1,730.0 4,300.0
market share price 0 0 3,892.00 0 2,225.35

Balance sheet

ASSETS

Non-current assets
Property, plant and equipment 4
9.31 13.42 11.68 11.38 10.78
 Right of use assets 5
- 40.10 20.10 28.76 77.02
Goodwill on consolidation (Net) 6
125.68 164.83 177.38 173.27 173.27
Other intangible assets 6
16.76 46.29 45.73 48.77 42.26
Intangible assets under development 7
6.01 11.42 15.09 17.83 16.91
Financial assets
(i) Investments 8
25.40 25.31 9.05 3.00 3.00
(ii) Others 11
118.70 127.03 91.64 111.17 113.20
Deferred tax assets (net) 12
65.31 14.42 4.96 2.59 6.75
Income tax assets (net) 14
161.43 244.32 99.99 154.54 223.81
Other non-current assets 15
2.25 0.70 0.59 0.52 2.75
Total non-current assets
530.85 687.86 476.20 551.82 669.75
Current assets

Financial assets

(i) Investments 9
16.01 - 60.94 50.35 190.88
(ii) (a) Trade receivables 16
264.35 295.94 277.69 369.65 380.27
(ii) (b) Unbilled revenue 10
- 97.93 129.64 170.71 155.87
(iii) Cash and cash equivalents 17
60.76 64.24 259.12 176.55 149.45
(iv) Bank balances other than cash
and cash equivalents 17 62.28 32.76 29.57 116.46 98.50
(v) Others 11
133.68 55.29 52.78 67.94 89.06
Income tax assets (net) 14
- - - 0.32 -
Other current assets 18
19.39 19.01 19.69 36.62 34.01
Assets classified as held for sale 48
2.22 2.22 5.18 - -
Total current assets
558.69 567.39 834.59 988.58 1,098.04
Total assets
1,089.54 1,255.26 1,310.79 1,540.41 1,767.79
EQUITY AND LIABILITIES
EQUITY
Equity share capital 19
17.10 17.10 17.10 17.10 17.10
 Other equity
(i) Owners of the parent company 20
522.02 554.99 634.93 676.11 790.53
(ii) Non-controlling interest 20
- - 4.00 12.59 12.86
Reserves & Surplus
- - - - -
Total equity
539.12 572.09 656.03 705.80 820.49
LIABILITIES
Non-current liabilities
Financial liabilities
(i) Lease liabilities 25
- 32.22 14.48 21.78 60.54
(ii) Other financial liabilities 26
5.21 - - 1.85 5.93
Deferred tax liabilities (net) 13
- - - 2.85 3.79
Employee defined benefit liabilities 21
56.63 72.74 88.25 111.82 116.22
Other non-current liabilities 22
4.22 4.22 4.22 4.22 4.23
Total non-current liabilities
66.06 109.18 106.96 142.53 190.71
Current liabilities

Financial liabilities

(i) Borrowings 23
10.63 76.23 0.01 27.67 19.34
(ii) Lease liabilities 25
- 15.22 8.35 10.38 20.24
(iii) Trade payables 24
-
(a) Total outstanding dues of
micro enterprises and small enterprises 0.91 5.46 5.18 2.65 0.94
(b) Total outstanding dues
other than micro enterprises and small
enterprises 27.08 32.36 23.60 39.27 43.85
(iv) Other financial
liabilities 26
212.73 195.78 239.93 302.41 330.11
Employee defined benefit
liabilities 21 39.06 48.55 51.58 63.38 74.08
Other current liabilities 27
193.80 200.22 218.43 246.31 268.04
Liabilities associated with assets
classified as held for sale 48 0.16 0.16 0.72 - -
Total current liabilities
484.37 573.98 547.81 692.08 756.60
Total Liabilities
550.43 683.17 654.76 834.61 947.31
Total equity and liabilities
1,089.54 1,255.26 1,310.79 1,540.41 1,767.80
Summary of significant accounting
policies 3
2022-
ASSETS
2018-19 2019-20 2020-2021 2021-22 2023
Non-current assets
Property, plant and equipment 4
9.31 13.42 11.68 11.38 10.78
Right of use assets 5
- 40.10 20.10 28.76 77.02
Goodwill on consolidation (Net) 6
125.68 164.83 177.38 173.27 173.27
Other intangible assets 6
16.76 46.29 45.73 48.77 42.26

CONSOLIDATED STATEMENT OF CASH FLOWS

2018- 2019- 2020- 2021- 2022-

Particulars
19 20 2021 22 2023
Operating Activities
Profit before tax 96.78 82.97 88.54 45.56
Adjustments to reconcile profit before tax to net cash
flows:
Depreciation and amortization 10.51 28.59 33.71 40.79 43.16
Dividend income on mutual fund investments -2.56 0.00 0.00 0.00 0.00
Finance costs 5.22 12.29 6.90 3.97 5.69
Interest paid 0.00 0.00 0.00 0.00 0.00
Interest income -11.45 -12.19 -15.23 -5.79 -10.86
Loss on disposal of property, plant and equipment (net) -0.03 0.08 0.00 0.05 0.20
Fair value adjustments (net) 0.11 -0.04 -1.89 -0.14 -0.33
Liabilities/provisions no longer required written back -3.31 -16.76 -15.74 -9.82 -20.95
GST and service tax written off 0.00 6.04 0.00 0.00 0.00
Bad debts written off (net) 2.95 9.13 7.61 3.49 3.80
Intangible assets under development written off 0.22 0.00 0.00 0.00 0.00
Provision for expected credit loss/(reversal) 3.67 8.96 6.16 -2.70 1.50
Provision for doubtful advances 0.07 2.52 1.43 0.00 0.00
Share-based payment expenses (net) 0.19 2.65 0.97 2.79 1.86
Share of loss from associate and joint venture 0.00 2.09 1.09 0.00 0.00
Sundry balances written off 0.01 0.28 0.24 0.62 0.45
Gain on sale of current investments (net) 0.00 -0.71 -0.73 -3.06 -6.24
Fair value gains on current investments (net) 0.00 0.00 -0.08 -0.37 -0.88
Fair value gain on assets held for sale (net) 0.00 0.00 0.00 -0.06 0.00
Exceptional items (net) 0.00 0.00 0.00 71.78 2.33

Working capital adjustments

(Increase) / decrease in trade receivables -48.06 -31.31 5.06 -91.83 -15.92
(Increase)/decrease in Inventories 0.00 0.00 0.00 0.00 0.00
(Increase) / decrease in other assets -6.71 10.62 -1.87 -16.83 0.07
(Increase) / decrease in unbilled revenue and other
financial assets -75.59 -28.75 -49.63 -74.19 -10.32
Increase / (decrease) in trade payables and other financial
liabilities 62.22 -18.63 49.00 79.05 35.67
Increase/(decrease) in other liabilities (including for PF
Trust) 10.06 12.00 29.99 -24.77 42.38
Increase / (decrease) in net employee defined benefit
liabilities 29.55 25.41 19.96 34.66 16.77

Income tax (payments)/refunds -86.22 -85.53 137.84 -59.34 -76.07

Net cash flows (used in)/ from operating activities -12.37 9.69 303.33 -6.15 12.31
Investing activities
Purchase of property, plant and equipment -6.37 -8.02 -3.71 -5.83 -6.03
Purchase of intangible assets (including intangibles under
development) -4.89 -7.73 -6.57 -7.57 -13.55
Proceeds from sale of property, plant and equipment 0.04 0.05 0.46 0.02 0.01
Acquisition of business (net of cash and cash equivalents
acquired) -9.22 -89.01 -15.00 -9.72 0.00
Sale / (purchase) of current investments 16.31 16.72 -57.26 14.02 -133.41
Dividend income/sale of mutual fund investments 2.56 0.00 0.00 0.00 0.00
Loans and advances repaid by/(given to) related parties -11.66 2.06 53.74 0.00 -9.80
Non-current investments -5.06 -2.00 -4.45 -3.00 0.00
(Investments in)/Maturity of fixed deposits (net) 8.39 31.15 1.93 -86.55 19.96
Interest received 11.67 9.48 18.60 5.58 10.43
Sale/purchase of investments in Subsidiary 0.00 0.00 0.00 4.55 0.00
Net cash flows (used in)/from investing activities 1.76 -47.30 -12.27 -88.50 -132.39
Financing activities
Proceeds from issue on exercise of stock options 0.03 0.01 0.01 0.00 0.00
Proceeds from issue of shares by subsidiary/company 0.00 0.00 0.00 0.89 0.00
Proceeds from / (repayment of) borrowings (net) -1.23 24.44 -24.44 2.50 0.00
Repayment of principal portion of lease liabilities 0.00 -12.71 -13.41 -12.51 -2.50
Finance costs -4.93 -11.82 -6.56 -3.97 -15.21
Net cash flows (used in)/from financial activities -6.13 -0.08 -44.40 -13.07 -17.71
-
Net (decrease)/increase in cash and cash equivalents
-16.74 -37.68 246.66 107.72 -137.79
Cash and cash equivalents at the beginning of the year 66.87 50.13 12.45 259.10 151.38
Cash and cash equivalents at the end of the year 17 50.13 12.45 259.10 151.38 13.59
Summary of significant accounting policies 3

Teamlease Service limited

 2018- 2019- 2020- 2021- 2022-
Particulars 19 20 2021 22 2023
32.74
Revenue growth 22.72% 16.93% -6.14% % 21.45%

Liquidity ratios
Current ratio (x) 2.25 2.19 2.39 2.23 2.34
Quick ratio (x) 2.25 2.19 2.39 2.23 2.34
Cash ratio (x) 0.13 0.11 0.47 0.26 0.20

Turnover ratio
receivable turnover 16.82 17.57 17.58 17.53 20.70
Days of Sales outstanding 21.69 20.77 20.76 20.82 17.64
Asset turnover 2.90 2.89 2.52 2.95 3.10
Working capital turnover 1.02 0.83 1.27 1.18 1.16
Fixed asset turnover 369.77 287.62 265.36 376.28 477.85

Interpretation: