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The hiring intent of TeamLease Services increased by 11% in the third quarter
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In Tuesday's intra-day trade on the BSE, shares of TeamLease Services rose 11% to Rs 4,355 after the business announced its hiring intent reached a new high of 41% in the October-December quarter (Q3FY22), up 3% from the July-September quarter (Q2FY22).
TeamLease Services is one of India's major human resource (HR) organizations, providing 3500+ employers with a variety of solutions to address their hiring, productivity, and scaling issues.
According to a press release, the findings from the TeamLease Services platform show the strong economic attitude and consumer confidence, as well as validating India Inc's pent-up talent acquisition requirements.
Also, the continuing quarter-on-quarter increase in recruiting intent, as mapped by TeamLease Services, speaks to significant business restructuring to adapt to digital transformation objectives, even though corporate workforce demand hasn't reached pre-pandemic levels. By December 2021, the workforce is predicted to grow by almost 430 million people.
Increased sales and delivery expectations, as well as warehouses for efficient supply chain management for eCommerce and retail, are driving higher demand for blue-collar workers. In Q3, the top non-metro cities to hire in are Hyderabad, Pune, and Chandigarh. According to the firm, Tier-2 cities have a 41% desire to hire rate, while Tier-3 cities have a 26% intent to hire rate.
As per media reports, Ajoy Thomas, TeamLease's VP and Business Head, Retail, E-Commerce, Logistics & Transportation (RELT) vertical, said that the companies are confident on hiring this quarter, reversing the previous quarter's economic slowdown and reversal migration of labor force, which is a favorable trend for the industry. Because to the high rate of vaccination, India's GDP is expanding at an annual rate of 8%. Not to mention, antecedents such as fewer supply chain disruptions and eCommerce sector development fueled by the holiday season are important factors driving corporate hiring appetite.
Meanwhile, despite today's nearly 10% gain, the stock is still down 21% from its all-time high of Rs 5,544 set on October 11, 2021.
Following a better-than-expected revenue (+10.7% QoQ) and in-line margin performance in Q2FY22, analysts at HDFC Securities retain a BUY recommendation on TeamLease.
According to the brokerage firm, strong recruiting e-commerce across major verticals (eCommerce, telecom, consumer, and BFSI), the addition of 59 new logos, and a better hiring outlook across industries would boost growth in the core staffing segment (90 percent of revenue).
As a result of the expansion and rising labor expenses, the expect general staffing margins to remain narrow. Specialized staffing and a good contribution from HR services will drive margin expansion. A provision of Rs 75 crore was set aside for PF trust investments in two NBFCs. The analysts believe the firm was late in providing these provisions because this is a long-standing issue; nonetheless, they do not anticipate any more provisions with a target price of Rs 5,270 per share.
In Tuesday's intra-day trade on the BSE, shares of TeamLease Services rose 11% to Rs 4,355 after the business announced its hiring intent reached a new high of 41% in the October-December quarter (Q3FY22), up 3% from the July-September quarter (Q2FY22).
TeamLease Services is one of India's major human resource (HR) organizations, providing 3500+ employers with a variety of solutions to address their hiring, productivity, and scaling issues.
According to a press release, the findings from the TeamLease Services platform show the strong economic attitude and consumer confidence, as well as validating India Inc's pent-up talent acquisition requirements. Also, the continuing quarter-on-quarter increase in recruiting intent, as mapped by TeamLease Services, speaks to significant business restructuring to adapt to digital transformation objectives, even though corporate workforce demand hasn't reached pre-pandemic levels. By December 2021, the workforce is predicted to grow by almost 430 million people.
Increased sales and delivery expectations, as well as warehouses for efficient supply chain management for eCommerce and retail, are driving higher demand for blue-collar workers. In Q3, the top non-metro cities to hire in are Hyderabad, Pune, and Chandigarh. According to the firm, Tier-2 cities have a 41% desire to hire rate, while Tier-3 cities have a 26% intent to hire rate.
As per media reports, Ajoy Thomas, TeamLease's VP and Business Head, Retail, E-Commerce, Logistics & Transportation (RELT) vertical, said that the companies are confident on hiring this quarter, reversing the previous quarter's economic slowdown and reversal migration of labor force, which is a favorable trend for the industry.
Because of the high rate of vaccination, India's GDP is expanding at an annual rate of 8%. Not to mention, antecedents such as fewer supply chain disruptions and eCommerce sector development fueled by the holiday season are important factors driving corporate hiring appetite. Meanwhile, despite today's nearly 10% gain, the stock is still down 21% from its all-time high of Rs 5,544 set on October 11, 2021.
Following a better-than-expected revenue (+10.7% QoQ) and in-line margin performance in Q2FY22, analysts at HDFC Securities retain a BUY recommendation on TeamLease.
According to the brokerage firm, strong recruiting e-commerce across major verticals (eCommerce, telecom, consumer, and BFSI), the addition of 59 new logos, and a better hiring outlook across industries would boost growth in the core staffing segment (90 percent of revenue).
As a result of the expansion and rising labor expenses, they expect general staffing margins to remain narrow. Specialized staffing and a good contribution from HR services will drive margin expansion. A provision of Rs 75 crore was set aside for PF trust investments in two NBFCs. The analysts believe the firm was late in providing these provisions because this is a long-standing issue; nonetheless, they do not anticipate any more provisions with a target price of Rs 5,270 per share.
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