Thread by @tycoonmindset05

The human resource company Teamlease services Ltd conducted their earnings concall today at 4:00 pm

" A company which rolled out NETAP to provide on the job training to apprentices."

Here are the key take aways 😁

@chokhani_manish @koolvicky
@saketreddy @ananthng

- The company is India's leading supply chain company in the organized sector.

- With over 2.12 lakh trainees the company is trying to increase their business scale to new level.

- Companies "Putting india back to work" innitiative have worked to get out of covid times.

- Company have seen a great demand coming back from customers and they are on verge to attain pre covid levels.

- Strategic planning is done on how to select people from hiring.

- Current major recruitment are from essential retail , IT and E commerce.

- The business have a keen interest towards the government PLI , PGI because of structural changes in various sectors.

- On corporate side company is seeing a great push in the wage force.

- Company have seen a huge change in position between companies due to digital disruption.

- There have a strong delivery system and the company is able to create new long term relationship as well.

- The company is looking forward to have an heavy organic Associate growth in future.

- They have made firm business provision which they are thinking to exit soon.

On specialised staffing
- The company had a nominal growth of 2% here.
- Their headcount is flat due to dull telecom business but the situation seems to change.

On replacement part
- The major of the replacement staffing is done in the high margin like Tata senses.

- With operational efficiency from Q1 and healthy pipeline company can cater more then before.

- 17 new logos were added in Q3 most of them are for long term.

- The digital investment the company have made will be forward looking for more revenue growth

Margins and provisions
- The major concern is cost which they will are looking forward won't hamper their margins.

- The company is in struggle to reach fy 19 EBIT margin as of now but they are assuming to attain that by quarter 4.

- Provision are been made on two of the accounts
1. For the delayed payment from government
2. From the continuance of their business

- From their Clients prespective
They too need to provision the additional cost for the employees.

Sourcing aspects
- With resources and assets at large scale they have broader footprint at less cost.
And along with that with tech support company have large list of clients and cater the position which they need to.

For contract
- The client aggreement are of 2 types based on closing fee and some are factored into the existing pricing.

- Government have set regulation for corporation which are been looked upon.

- Government also gives alternative choices for employee support.

Advantage of human resource
-Clients love the team lease service as due to the smoothness in business and offer them high cost arbitrage.

- Easily their work is done and their focus in business is increased.

On School guru
- A profitable scale for Q3 , it had 3 streams of revenue:-
1. University
2. Corporate
3. Elemental student revenue
It's mostly virtual. And technology investment will support this.
And
IMSI is also profitable and had an element to focus on scale level.

- The margins for school guru is 24 % and IMSI is 14%.

- A significant jump in other expenses might continue.

Seasonal bidding
- The incremental hireing during festive seasonal have helped the company to attain growth.

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