TeamLease Services
BSE SENSEX
33,837
S&P CNX
10,463
19 December 2017
Update | Sector: Others
CMP: INR2,014
TP: INR2,500(+24%)
More ups than downs
Valuation support vectors surmount risks; reiterate Buy
Buy
Stock Info
Bloomberg
Equity Shares (m)
52-Week Range (INR)
1, 6, 12 Rel. Per (%)
M.Cap. (INR b)
M.Cap. (USD b)
Avg Val, INRm
Free float (%)
TEAM IN
17
2336 / 850
9/44/97
34.4
0.5
30
56.8
In the backdrop of a limited listed history, lack of comparables to take cues from and
the yet-developing understanding of underlying business dynamics, we add context
and perspective to existing valuation metrics.
The exercise leads us to believe that an extension of the time horizon coupled with a
natural evolution of the business make a case for significant valuation triggers from
current levels – in line with the benefits of a long-term growth story unfolding.
Sustained superiority of financial performance because of industry trends, business
model and operational excellence continue strengthening our positive long-term
view on the stock.
Financials Snapshot (INR b)
2017 2018E 2019E
Y/E Mar
30.4
37.5
45.9
Net Sales
0.4
0.6
0.8
EBITDA
0.7
0.7
1.1
PAT
38.8
43.2
64.2
EPS (INR)
167.6
11.4
48.4
Gr. (%)
222.9 266.1 330.3
BV/Sh (INR)
19.2
17.7
21.5
RoE (%)
19.0
17.9
21.5
RoCE (%)
51.9
46.5
31.4
P/E (x)
9.0
7.6
6.1
P/BV (x)
Shareholding pattern (%)
As On
Sep-17 Jun-17 Sep-16
Promoter
43.2
43.5
45.6
DII
14.8
17.1
13.8
FII
21.6
18.9
19.2
Others
20.4
20.5
21.4
FII Includes depository receipts
Stock Performance (1-year)
Team Lease Serv.
Sensex - Rebased
2,200
1,850
1,500
1,150
800
PEGging to growth:
TEAM is currently trading at 31x FY19E and 23x FY20E
earnings, which when observed contextually does not appear steep. At 40%
earnings CAGR over FY18-20, a PEG of 0.7x is lower than that observed globally
across cycles. A PEG of 1x may be deemed par-for-the-course given the multi-year-
high-growth opportunity, and that translates to a 40% upside.
A short-lived discord:
While the stock seems undervalued on P/E, the fact that it is
trading at an EV of 37x FY19E and 27x FY20E EBITDA gives the impression of it
being rightly-priced, adjusted for growth (33% CAGR). However, when the time
horizon is extended longer, and we consider the possibility of cash deployment
(through acquisitions or dividends) and a gradual increase of tax rates five years
hence, this disconnect will disappear, as EBITDA growth will exceed PAT growth.
A different take on margins:
Sub-2% EBITDA margin can deceive into belief of
TEAM walking on thin ice. However, that remains a function of the high pass-
through component in the business (salary for staffed associates). If TEAM’s
commissions are considered as revenue (that is, taking the pass-through
component out of P&L), we land up with >85% gross margin and >45% EBITDA
margin as of FY17. Valuation metrics remain unmoved, as absolute profitability
remains unchanged from this angle; and this should allay any concerns around the
business hitting the red on margins.
Add to that the cash flow characteristics…:
Steady working capital needs and
minimal capital expenditure makes staffing a high cash generation (and conversion)
business. While 1.1/1.2% FCF margin on FY19/20E doesn’t reflect this métier,
ignore the pass-through and you’re looking at margins of 24/25%.
…combined with capital allocation comfort:
The options for the cash are
acquisitions and dividends. Even if the payout ratio is increased gradually as the
absolute amount of FCF moves higher (along with the cumulative cash balance),
the business has the potential to throw back 30-80% of PAT back at investors. A
dividend yield would act as additional support to valuations and also improve
return ratios once the cash starts bloating the denominator.
Investors are advised to refer through important disclosures made at the last page of the Research Report.
Motilal Oswal research is available on www.motilaloswal.com/Institutional-Equities, Bloomberg, Thomson Reuters, Factset and S&P Capital.
Sagar Lele – Research Analyst
(Sagar.Lele@MotilalOswal.com); +91 22 6129 1531
Ashish Chopra – Research Analyst
(Ashish.Chopra@MotilalOswal.com); +91 22 6129 1530

TeamLease Services
What can go wrong?
Apart from the risks of macroeconomic downturns, an
additional factor has been the claw back of 80JJAA tax benefits, resulting in a 35%
upgrade to earnings estimates. Zero tax till FY23 (based on incremental addition of
resources paid below INR25,000 per month) followed by a gradual move to 30% by
FY28 contributes INR225 to our fair value computation, thereby limiting the risk to
9% of CMP in case of policy reversals around the taxation benefits.
Valuation and view:
We value TEAM using DCF to reach a price target of INR2,500
(24% upside); our price target has increased by 9%, led by an upward adjustment to
our profitability estimates. At 31/23x FY19/20E earnings, valuations are rich, living
up to our growth expectations – 23% revenue CAGR, 33% EBITDA CAGR, and 41%
PAT CAGR over FY18-20. Sustained superiority of financial performance because of
industry trends, business model and operational excellence continue strengthening
our positive long-term view on the stock.
Buy.
19 December 2017
2

TeamLease Services
Expensive? Not really
Five parameters that highlight headroom on valuations
#1 – Just how expensive are current valuations?
Led by strong revenue growth, multiple margin levers and the availing of tax
benefits, we expect TEAM to report a 41% PAT CAGR over FY18-20. For the high
earnings growth, the stock is trading at 31/23x FY19/20E earnings, making the PEG
stand at 0.7x for both years.
Exhibit 1: PEG of 0.7x for FY19/20E
EPS (INR)
EPS growth (%)
PE (x)
P/E//G (x)
FY16
15
-19%
139
-7.2
FY17
39
168%
52
0.31
FY18
43
11%
47
4.07
FY19E
64
48%
31
0.65
FY20E
86
35%
23
0.68
Source: MOSL
We have noted in our initiating coverage that global staffing companies have
averaged a PEG ratio of 1 through various economic cycles. The difference being, for
them, because of full penetration of flexi-staffing and a market that is entirely
formalized, valuations are almost always directly correlated to economic cycles.
However, we also note that PEG was well above 1x at instances of high growth –
when the model was new, and when staffing companies started looking at newer
geographies and service lines to expand their presence once their home markets
were fully penetrated.
Relative to this, we have a scenario where Indian companies are poised with high
growth opportunities, sustainable over the next decade. We note that a PEG of 1x
translates to implied target P/E multiple of 35x on forward earnings. Compare that
with current 24x, we see material upside from current levels on the basis of
valuations, which are adjusted for the growth exhibited by the company.
Exhibit 2: Material headroom for the stock from current levels
PEG
PE (x) on FY20
TP on FY20
Upside
0.8
28
2,380
18%
0.9
31
2,680
33%
1
35
2,980
48%
1.1
38
3,280
63%
1.2
41
3,570
77%
Source: MOSL
#2 – The need to look at EV/EBITDA from a longer term perspective
On an EV/EBITDA basis, TEAM is currently trading at 44/33x FY19/20E earnings.
Applying a PEG-like analysis for EV/EBITDA we figure that the stock is already trading
at 1.3/1.0 EV/EBITDA/G on FY19/20E.
Exhibit 3: Stock already trading at 1.0x EV/EBITDA/Growth
EV/EBITDA (x)
EBITDA growth (YoY, %)
EV/EBITDA/Growth (x)
FY18
58
40
1.5
FY19
44
34
1.3
FY20
33
33
1.0
Source: MOSL
19 December 2017
3

TeamLease Services
However, we understand that this phenomenon is optically misguiding. In the near-
term, adjusted for EBITDA growth, the stock looks rightly-priced on EV/EBITDA basis.
Exhibit 4: Underpriced on P/E and rightly priced on EV/EBITDA
P/E/Growth (x)
4.1
EV/EBITDA/Growth (x)
1.5
1.3
0.7
1.0
0.7
FY20
Source: MOSL
FY18
FY19
But, this gap converges as we look at the longer term because of two key reasons:
The company starts getting taxed at a gradually increasing rate FY24 onwards
(making earnings growth slower than EBITDA growth)
Other income as a component reduces if we expect the company to start paying
out dividends, thereby again reducing PAT growth relative to EBITDA growth
Exhibit 5: The gap between the two metrics reduces as we go further ahead in time
59.3
44.2
47.4
32.0
23.8
17.4
FY21
33.3
24.1
17.6
EV/EBITDA (x)
P/E
13.3
9.7
FY23
10.1
7.7
FY24
7.7
6.8
FY25
6.1
5.9
FY26
4.9
5.0
FY27
12.9
FY22
3.9
4.1
FY28
FY18
FY19
FY20
Source: MOSL
We believe the PAT-EBITDA valuation metric disassociation is a temporary
phenomenon, and will start looking different based on dividend payouts and tax
rate movements.
#3 – Looking at margins differently; it’s a highly profitable business
There are several margin levers available for TEAM to see sustained profitability
uptick over the coming years. The key drivers of profitability would be:
Higher blended realization, driven by a mix change
Scale-related benefits, assuming sustenance of the 20%+ growth CAGR
demonstrated historically
Higher composition of other businesses (IT staffing and allied HR services) in the
overall pie
19 December 2017
4

TeamLease Services
For TEAM, we expect the realization and scale-related benefits to keep accruing
over the longer term; a change in business mix would only impact overall
profitability in the near-term. Because TEAM acquired three companies in the IT
staffing space over FY17-18 and they would see full integration over these years,
margin addition of 20bp because of these factors is the highest in FY17 and FY18. As
growth rates in the varied businesses converge, margin accretion would be limited
to a mere 2bp.
Exhibit 6: Commission growth > Revenue growth
Assumptions
Realization uptick
Operating leverage
5pp change in favour of percentage mark-up pricing
8% wage inflation
15% growth in Associates
5bp
10% growth in Core Employees
12pp higher CAGR in IT staffing and Other HR services combined over
Business mix change*
2-4bp
FY17-20E
Similar growth in all businesses post FY20
*Applicable only in the short-term; Source: MOSL
Benefit per year on a base EBITDA margin of
1.5%
15bp
To gauge the true impact and potential of operating leverage, let us invert the way
financials are currently reported. Instead of the current reporting of revenue
(salaries payable to associates + commission earned), let us assume only the
commission earned to be reported revenue.
And we do this from an analytical perspective plainly because upwards of 95% of
the revenue is a pass-through! The true potential of margin levers could
potentially be ignored given the small numbers.
Exhibit 7: >95% of the revenue is a pass-through*
Salary component (pass-through)
+ Commission earned
Revenue
- Salary paid to associates
- Costs
Gross profit
Gross profit margin (%)
- SGA and operating expenses
EBITDA
EBITDA margin (%)
FY16
24,000
750
24,750
24,000
113
638
2.60%
338
300
1.20%
FY17
29,808
930
30,738
29,808
128
802
2.60%
384
418
1.40%
FY18E
37,022
1,164
38,185
37,022
146
1,017
2.70%
439
579
1.50%
FY19E
45,981
1,467
47,448
45,981
168
1,300
2.70%
503
797
1.70%
FY20E
57,108
1,862
58,970
57,108
192
1,670
2.80%
577
1,092
1.90%
*Numbers in this exhibit are for representational purposes, and will not exactly match that of
TeamLease; Source: MOSL
How about we ignore the
pass-through component?
Ignoring the pass-through component and assuming the absolute commission
earned by staffing companies as revenue, we can get a true sense of how operating
leverage will spill over to higher profitability. Note: this would be naturally adjusted
for realization change, since any uptick there would be reflected in revenue growth
in an inverted model.
19 December 2017
5

TeamLease Services
Exhibit 8: Highlights the impact of operating leverage ex realization-related benefits*
Revenue (commission earned)
- Costs
Gross profit
Gross profit margin (%)
- SGA and operating expenses
EBITDA
EBITDA margin (%)
FY16
750
113
638
85.00%
338
300
40.00%
FY17
930
128
802
86.20%
384
418
44.90%
FY18E
1,164
146
1,017
87.40%
439
579
49.70%
FY19E
1,467
168
1,300
88.60%
503
797
54.30%
FY20E
1,862
192
1,670
89.70%
577
1,092
58.70%
*Numbers in this exhibit are for representational purposes, and will not exactly match that of
TeamLease; Source: MOSL
Over FY17-20, the 340bp gross margin expansion and 1,380bp EBITDA margin
expansion surfaces from a disassociation of costs incurred by staffing companies
from overall growth; this in its most basic form can be explained through the
associate/core employee ratio.
From a visual perspective, this essentially erases the worries around ‘wafer thin
margins’. For most practical purposes, the business is one that is operationally
leveraged to growth, generating >80% gross profits and >40% operating margins.
Given the fact that for this analysis, we are only changing what is considered as
revenue, on an absolute basis, gross profit, EBITDA and PAT remain the same – that
should leave all valuation multiples unchanged. What changes is the way we look at
the business. If 1.5% EBITDA margin seems difficult to ascribe a high multiple to,
49.7% definitely provides ample comfort.
Even in a downturn, the absolute commission earned by the company would have to
fall below its variable costs in order for it to fall in the red. In this business (in our
inverted model), 80% of the costs for the company would be fixed in nature – costs
associated with own employees of the staffing agency and other overheads.
Exhibit 9: Business model offers ample buffer on achievement of scale
Revenue (commission earned)
Fixed costs
Variable costs
EBITDA
Buffer
Buffer (%)
FY16
750
360
90
300
390
52%
FY17
930
410
102
418
520
56%
FY18E
1,164
468
117
579
696
60%
FY19E
1,467
536
134
797
931
63%
FY20E
1,862
616
154
1,092
1,246
67%
Source: MOSL
Revenue has the leeway to fall by 56% as of FY17 to reach 0% on operating margins.
The buffer increases as revenue increases because we are factoring in a shift in
proportion from fixed commission to variable. What in a reported model appears as
a profitability booster, in an inverted model becomes a revenue additive.
That said,
a buffer of >50%, in any case, is a large one to have, and is sufficient to cushion
down cycles.
19 December 2017
6

TeamLease Services
#4 – FCF margin: the beauty of this business lies in the cash generation
The two distinguishing characteristics of any staffing business are the degree of
operating leverage and the high cash generation (given minimal capital expenditure
and fixed WC needs).
Whereas FCF/Sales would range between 0.9% and 2.1% over the next ten years,
what helps here again is ignoring the pass-through, without which, FCF/Sales would
be 20% in FY18 and would inch up all the way to 37% in FY28.
Exhibit 10: Healthy FCF margins
FCF (INRm)
1.7%
FCF/Sales
2.0% 2.1% 1.9% 1.9% 2.0% 2.1%
FCF/Sales (reported model)
FCF/Sales (inverted model)
0.9%
1.1% 1.2%
1.5%
Source: MOSL, Company
#5 – Dividends: a likely scenario
Given the strong cash generation, and minimal incremental requirement of cash to
expand operations, cash has been deployed in acquisitions and dividends by global
staffing companies.
We are making certain assumptions to gauge the impact of a likely dividend
scenario, primarily around how much of the FCF would be paid out once generation
on an absolute basis exceeds certain milestones in a given year – 0% for FCF of
below INR500m, 50% for INR500m to INR1b, 75% for INR1b to INR2.5b, and 90% for
anything above INR2.5b.
Based on this, we see a case for a strong payout ratio and dividend yield, which
would act as additional returns on the existing base.
Exhibit 11: Dividend payout ratio has the potential to reach 80%
FCF (INRm)
Dividend (% of FCF)
Dividend payout ratio
Years
Dividend yield
<INR0.5b
0%
0%
<FY18
0%
INR0.5b-INR1b
50%
30-35%
FY18-20
0.5-1.0%
INR1-2.5b
75%
55-60%
FY21-23
2.0-4.5%
>INR2.5b
90%
75-80%
FY24-28
7.0-14.0%
Source: MOSL
19 December 2017
7

TeamLease Services
What’s the downside?
Assessing the reversal of a factor that upped estimates by 35%
What if tax benefits are clawed back?
Our earnings estimates saw a 35% bump as soon as we factored in the near-zero tax
rate for TEAM on it availing the benefits of Section 80JJAA of the Income Tax Act.
Given the large number of incremental hires and the fact that most of the costs
incurred by TEAM are related to people, the benefit of this provision has been
significant.
Since these benefits are embedded in our estimates, and hence our fair value,
assessment of the value addition attributed to this factor becomes critical. Over the
next decade, if we assume average people addition of 13% YoY and average wage
inflation of 7%, TEAM should be tax-free till FY23. Post this, as the incremental
addition of resources earning less than INR25,000 per month reduces, and the
residual impact from previous years’ addition continues, ETR is likely to gradually
increase to 30% by FY28, post which we assume this to extend into perpetuity.
Exhibit 12: Likely ETR for TEAM going forward
Addition of people
Wage inflation
Average salary (pppm)
ETR
FY18
13%
7%
21,904
0%
FY19
14%
8%
23,669
0%
FY20
16%
7%
25,355
0%
FY21
17%
8%
27,488
0%
FY22
17%
8%
29,802
0%
FY23
14%
7%
31,987
0%
FY24
14%
7%
34,334
5%
FY25
14%
7%
36,855
17%
FY26
10%
6%
39,032
25%
FY27
10%
6%
41,339
29%
FY28
10%
6%
43,784
30%
Source: MOSL
The NPV of cumulative savings on tax because of these provisions over the next
ten years comes to INR225 per share. If we remove this from our current price
target of INR2,500, fair value would drop by 9%.
19 December 2017
8

TeamLease Services
Valuation and view
TEAM is the leader in the highly fragmented temporary staffing industry, with a
6% market share. Its extensive geographic reach, presence in multiple industries
and functions, scale, ability to fill positions, and sourcing capabilities reflect in its
operational prowess, which is a key determinant of success in this industry.
Temporary staffing across the globe has gained prominence in the last few
years, as companies seek flexibility and better cost management. This segment
constitutes 2-4% of the total workforce for developed countries, and averages at
1.6% for the world v/s 0.5% in India. A convergence to the global average itself
can triple the industry.
A further impetus would be provided by formalization; which would be
catalyzed by GST implementation, erasing the 15% pricing benefit that
unorganized players could give customers by evading the tax net. However, for a
full-fledged movement towards the organized segment, reforms in labor laws
would be necessary, so the loopholes in statutory payment to employees are
also plugged.
Together, growth in the industry and formalization can ensure a sustained >20%
growth in the sector (and for TEAM) over the next decade. For TEAM,
performance would be further driven by profitability improvement, led by [1]
operational leverage because of an improvement in the Associate/Core
Employee ratio, and [2] higher proportion of revenue from IT staffing, training
and other HR solutions, which command better margins. We expect a
cumulative 40bp margin expansion for TEAM over FY18-20.
Add to this the benefits of Section 80JJAA of the Income Tax Act, and a
consequent near-zero tax rate, and a revenue CAGR of 23% and EBITDA CAGR of
33% translates into 41% PAT CAGR.
TEAM will be a key beneficiary of industry trends, and we expect it to
demonstrate a high-growth trajectory over the next three years. Consequently,
prospective improvement in return ratios and cash generation, led by the
business model, would be a key driver of value creation for TEAM.
We value TEAM using DCF to reach a price target of INR2,500, implying an
upside of 22%. Sustained financial performance expectations because of
industry trends, business model and operational excellence continue
strengthening our positive long-term view on the stock.
Buy.
Key triggers
GST-related pickup driving higher growth in the general staffing business
Significant scaling up of the IT staffing business
Continued profitability expansion
Key risks
Economic downturn leading to a proportionate and direct impact on business
Loss of business or issues with a top client (top-5 contribute 14% of revenue;
top-10 contribute 20% of revenue)
Inability to have a higher proportion of revenue from other HR services and
professional staffing, leading to lower realizations and profitability
19 December 2017
9

TeamLease Services
Exhibit 13: Fair value of INR2,500/share based on DCF
Discount rate
Terminal growth rate
PV FCF
PV of terminal value
NPV
Less: Debt
Add: Cash and cash equivalents
Total equity value
Per share
PV FCF
PV of terminal value
NPV
Less: Debt
Add: Cash and cash equivalents
Total equity value
NOSH m
CMP
Target price
Upside (%)
12.0%
5.0%
12,216
28,091
40,306
11
2,140
42,435
714
1,643
2,357
1
125
2,482
17
2,050
2,500
22%
Source: MOSL
Exhibit 14: We assume 12% WACC and 5% terminal growth rate
WACC/g
990
10%
11%
12%
13%
14%
3.00%
2,800
2,400
2,100
1,800
1,600
4.00%
3,200
2,700
2,300
2,000
1,700
Sensitivity analysis
5.00%
3,700
3,000
2,500
2,100
1,800
6.00%
4,400
3,400
2,800
2,300
2,000
7.00%
5,600
4,100
3,200
2,600
2,200
Source: MOSL
19 December 2017
10

TeamLease Services
Story in charts
Exhibit 15: Revenue growth momentum to remain intact
Revenue (INRm)
34.8% 35.1%
22.3%
31.2%
24.8%
24.1%
21.4% 23.1% 22.6%
-2.2%
-0.9%
Growth (YoY, %)
Exhibit 16: Margin expansion to be aided by scale and
business mix change
EBITDA (INRm)
EBITDA margin (%)
1.7% 1.8% 2.0%
1.2% 1.0% 1.5%
0.8%
Source: Company, MOSL
Source: Company, MOSL
Exhibit 17: Scale has resulted in higher efficiency
Associates / Full-time employee
203
Exhibit 18: Addition of higher margin businesses expected to
further improve profitability
EBITDA margin (%) in FY17
15.0%
130
140
149
151
152
154
165
166
6.9%
1.3%
General staffing
IT staffing
Other HR services
Source: Company, MOSL
Source: Company, MOSL
Exhibit 19: Portfolio currently dominated by general staffing
IT staffing,
3.1%
Other HR
services,
1.6%
Exhibit 20: Well-diversified staffing portfolio (FY17)
5
6
7
5 4 1
24
Retail and consumer
Manufacturing
Others
BFSI
Telecom and ISPs
FMCG
Agri/Dairy
IT
Auto
E-commerce
Source: Company, MOSL
General
staffing,
95.4%
Source: Company, MOSL
9
20
19
19 December 2017
11

TeamLease Services
Financials and Valuations
Income Statement
Y/E Mar
Net Sales
Change (%)
EBITDA
EBITDA Margin (%)
Depreciation
EBIT
Interest
Other Income
Extraordinary items
PBT
Tax
Tax Rate (%)
Min. Int. & Assoc. Share
Reported PAT
Adjusted PAT
Change (%)
2013
12,507
35.1
-111
-0.9
36
-147
5
115
0
-37
0
0.0
0
-37
-37
-77.6
2014
15,297
22.3
121
0.8
19
102
2
79
0
178
0
0.0
0
178
178
-581.9
2015
20,071
31.2
241
1.2
27
214
2
114
0
326
18
5.5
0
308
308
72.6
2016
25,049
24.8
259
1.0
30
229
5
154
0
378
130
34.4
0
248
248
-19.4
2017
30,419
21.4
446
1.5
43
403
14
224
0
613
-50
-8.2
0
664
664
167.6
2018E
37,452
23.1
627
1.7
82
545
11
205
0
739
0
-0.1
0
739
739
11.4
(INR Million)
2019E
45,920
22.6
841
1.8
89
752
2
347
0
1,097
0
0.0
0
1,097
1,097
48.4
2020E
57,001
24.1
1,116
2.0
97
1,019
2
458
0
1,476
0
0.0
0
1,476
1,476
34.5
Balance Sheet
Y/E Mar
Share Capital
Reserves
Net Worth
Debt
Deferred Tax
Total Capital Employed
Gross Fixed Assets
Less: Acc Depreciation
Net Fixed Assets
Capital WIP
Investments
Current Assets
Inventory
Debtors
Cash & Bank
Loans & Adv, Others
Curr Liabs & Provns
Curr. Liabilities
Provisions
Net Current Assets
Total Assets
2013
5
1,005
1,010
121
0
1,131
282
205
77
0
0
2,135
5
618
780
732
1,111
981
130
1,023
1,131
2014
5
1,183
1,188
9
0
1,197
276
199
77
0
0
2,326
3
595
847
881
1,236
1,048
188
1,090
1,197
2015
5
1,483
1,488
0
-57
1,431
221
222
-1
42
0
2,974
2
813
1,147
1,012
1,638
1,372
266
1,336
1,431
2016
171
2,945
3,116
194
-45
3,264
309
252
57
0
0
5,629
2
1,205
2,590
1,832
2,476
2,101
375
3,153
3,264
2017
171
3,640
3,811
11
-149
3,673
349
302
47
0
103
5,641
2
1,872
1,593
2,174
3,101
2,573
528
2,540
3,673
2018E
171
4,380
4,551
11
-149
4,412
373
384
-11
0
103
7,155
2
2,336
2,140
2,677
3,818
3,168
650
3,338
4,413
(INR Million)
2019E
171
5,477
5,648
11
-149
5,510
403
473
-70
0
103
9,174
2
2,902
2,988
3,282
4,680
3,884
796
4,494
5,510
2020E
171
6,953
7,124
11
-149
6,985
440
570
-130
0
103
11,839
3
3,649
4,112
4,075
5,810
4,821
989
6,029
6,985
19 December 2017
12

TeamLease Services
Financials and Valuations
Ratios
Y/E Mar
Basic (INR)
EPS
Cash EPS
Book Value
DPS
Payout (incl. Div. Tax.)
Valuation(x)
P/E
Price / Book Value
EV/Sales
EV/EBITDA
Dividend Yield (%)
Profitability Ratios (%)
RoE
RoCE
RoIC
Turnover Ratios (%)
Asset Turnover (x)
Debtors (No. of Days)
Inventory (No. of Days)
Creditors (No. of Days)
Leverage Ratios (%)
Net Debt/Equity (x)
2013
-2.2
0.0
59.1
0.0
0.0
2014
10.4
11.5
69.5
0.0
0.0
2015
18.0
19.6
87.0
0.0
0.0
111.9
23.1
1.7
137.8
0.0
-3.6
-2.8
-44.8
11.1
18
0
0
-0.7
16.2
15.5
29.1
12.8
14
0
2
-0.7
23.0
23.1
68.5
14.0
15
0
1
-0.8
2016
14.5
16.3
182.2
0.0
0.0
138.8
11.0
1.3
123.5
0.0
10.8
10.5
32.8
7.7
18
0
1
-0.8
2017
38.8
41.3
222.9
0.0
0.0
51.9
9.0
1.1
73.6
0.0
19.2
19.0
32.9
8.3
22
0
1
-0.4
2018E
43.2
48.0
266.1
0.0
0.0
46.5
7.6
0.9
51.5
0.0
17.7
17.9
26.3
8.5
23
0
1
-0.5
2019E
64.2
69.4
330.3
0.0
0.0
31.4
6.1
0.7
37.4
0.0
21.5
21.5
32.8
8.3
23
0
1
-0.5
2020E
86.3
92.0
416.6
0.0
0.0
23.3
4.8
0.5
27.2
0.0
23.1
23.1
39.3
8.2
23
0
1
-0.6
Cash Flow Statement
Y/E Mar
Adjusted EBITDA
Non cash opr. exp (inc)
(Inc)/Dec in Wkg. Cap.
Tax Paid
Other operating activities
CF from Op. Activity
(Inc)/Dec in FA & CWIP
Free cash flows
(Pur)/Sale of Invt
Others
CF from Inv. Activity
Inc/(Dec) in Net Worth
Inc / (Dec) in Debt
Interest Paid
Divd Paid (incl Tax) & Others
CF from Fin. Activity
Inc/(Dec) in Cash
Add: Opening Balance
Closing Balance
2013
-111
45
-17
-86
75
-93
-11
-104
1
26
16
0
40
-5
0
35
-42
822
780
2014
121
8
58
-78
55
164
-26
137
2
43
19
0
-113
-2
0
-115
67
780
847
2015
241
15
38
17
32
343
-37
306
3
0
-34
0
-8
-1
0
-10
300
847
1,147
2016
259
54
-150
-265
-3
-105
-47
-152
2
23
-22
1,500
0
-4
73
1,569
1,443
1,147
2,590
2017
446
53
-19
-191
43
332
-18
314
-85
-814
-917
0
0
-11
-401
-412
-997
2,590
1,593
2018E
627
0
-250
0
0
377
-24
353
0
205
181
0
0
-11
0
-11
547
1,593
2,140
(INR Million)
2019E
841
0
-309
0
0
532
-30
502
0
347
317
0
0
-2
0
-2
848
2,140
2,988
2020E
1,116
0
-411
0
0
705
-37
668
0
458
421
0
0
-2
0
-2
1,125
2,988
4,112
19 December 2017
13

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Disclosure of Interest Statement
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TeamLease Services
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19 December 2017
14