Team Lease Services Reports Mixed Financial Performance in Q2 2024-2025

Nov 08 2024 09:53 AM IST
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Team Lease Services, a smallcap company in the miscellaneous industry, has released its financial results for the quarter ending September 2024. The net sales for the quarter were the highest in the last five quarters, showing a positive trend. However, the Profit Before Tax and Profit After Tax have both fallen, and the company's reliance on non-business income may not be sustainable.

Team Lease Services, a smallcap company in the miscellaneous industry, has recently declared its financial results for the quarter ending September 2024. According to the data released on November 6, 2024, the stock call for Team Lease Services by MarketsMOJO is 'Sell'.

The company has shown a flat financial performance in the second quarter of the fiscal year 2024-2025, with a score of 2 compared to -8 in the previous quarter. However, there are some positive aspects to the financials of Team Lease Services based on the September 2024 data. The net sales for the quarter were the highest in the last five quarters at Rs 2,796.83 crore, showing a positive trend in the near term. Additionally, the net sales have grown by 23.07% year on year, indicating a positive trend in the near term.

Another positive aspect is the Debtors Turnover Ratio, which was the highest in the last five half-yearly periods at 21.44 times. This shows that the company has been able to settle its debtors faster.

However, there are some areas of concern for Team Lease Services based on the September 2024 financials. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -6.97% year on year, and the Profit After Tax (PAT) has also fallen by -9.9% year on year. This indicates a negative trend in the near term for both PBT and PAT.

Moreover, the Non-Operating Income for the quarter is 41.26% of the Profit Before Tax (PBT), which suggests that the company's income from non-business activities is high. This may not be a sustainable business model in the long run.

In conclusion, Team Lease Services has shown a mixed financial performance in the second quarter of the fiscal year 2024-2025. While there are some positive aspects, there are also some areas of concern that investors should keep in mind while making any investment decisions.
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