{"id":613,"date":"2020-01-10T11:06:13","date_gmt":"2020-01-10T11:06:13","guid":{"rendered":"http:\/\/www.assetmultiplier.co.in\/blog\/?p=613"},"modified":"2020-01-10T11:06:15","modified_gmt":"2020-01-10T11:06:15","slug":"pricing-is-not-an-issue-because-we-have-hit-rock-bottom-and-it-can-only-get-better-from-here-it-cannot-get-worse-than-this-ravi-vishwanath-cfo-teamlease","status":"publish","type":"post","link":"https:\/\/www.assetmultiplier.co.in\/blog\/2020\/01\/10\/pricing-is-not-an-issue-because-we-have-hit-rock-bottom-and-it-can-only-get-better-from-here-it-cannot-get-worse-than-this-ravi-vishwanath-cfo-teamlease\/","title":{"rendered":"\u2018Pricing is not an issue because we have hit rock bottom and it can only get better from here. It cannot get worse than this\u2019 &#8211; Ravi Vishwanath, CFO, Teamlease"},"content":{"rendered":"\n<p><strong>Update&nbsp;on the Indian Equity Market:<\/strong><\/p>\n\n\n\n<p>There was optimism in the global markets after US President Donald Trump\u2019s comments on the Iran conflict eased worries.\u00a0On Thursday, Nifty50 ended 1.6% higher at 12,216. Nifty Realty (+2.7%), Nifty Auto (+2.7%) and Nifty PSU Bank (+2.4%) were the top gainers among sectoral indices. Nifty IT (-0.2%) was the only sector that ended the day in the red. Among the stocks, JSW Steel (+5.9%), Infratel (5.4%) and Tata Motors (+5.4%) were the biggest gainers while TCS (-1.6%), Coal India (-1.1%) and HCL Tech (-0.8%) ended in the red. <\/p>\n\n\n\n<p><strong>\u2018Pricing is not an issue because we have hit rock bottom and it\ncan only get better from here. It cannot get worse than this\u2019 &#8211; Ravi\nVishwanath, CFO, Teamlease<\/strong><strong><\/strong><\/p>\n\n\n\n<p>Excerpts from an interview with Ravi Vishwanath, CFO, Teamlease with\nETNOW on January 8, 2020:<\/p>\n\n\n\n<ul><li>Talking about the outlook on the staffing business,\nhe says they expected a better offtake in the general staffing business but\nsome amount of slowness has percolated into Q4 from Q3. <\/li><li>The pipeline continues to be strong and they are\nhopeful on the deals they are pursuing.<\/li><li>There is still nervousness in the market. Temporary\nstaffing is still okay as people expect things will be getting back to normal\nsooner rather than later. <\/li><li>On the productivity front, they are working on\nmultiple projects on the tech backend. Their focus is on these backend IT projects,\nwhich are expected to contribute to productivity soon.<\/li><li>Some one-time charges had impacted the company\u2019s\nmargins in H1. They do not expect those charges in H2, so margins will be on\nsimilar lines as seen in the past.<\/li><li>When asked how has the acquisition of IMSI, a\ncompany focussed on infrastructure management, he said that they basically\ncomplete the portfolio of services that Team Lease has to offer in the IT\nstaffing space. With the acquisition complete, they are now focussed on\nintegrating all the services under a common leadership at the backend.<\/li><li>They have exited 75-80% of the margin dilutive\nprojects they entered into last year and are hopeful of exiting from the others\nbefore 31<sup>st<\/sup> March. Then, they expect telecom margins to be back to\n4-5% like what they were in the past. <\/li><li>There is some interest with companies for telecom\nstaffing, which is a good sign for the telecom staffing business. <\/li><li>Since there are no entry barriers in the highly\nfragmented industry, there has been a lot of new entrants. However, there are\nhuge barriers to scale in this industry. That is why there aren\u2019t many\ncompanies with more than a 50,000 headcount. TeamLease operates with all\norganised players and there aren\u2019t many smaller companies that have been able\nto reach that scale. <\/li><li>Since they work with recognised names, pricing does\nnot seem to be an issue and he is hopeful that it can only get better from\nhere. <\/li><\/ul>\n\n\n\n<p>Consensus Estimate (Source: market screener\nwebsite)<\/p>\n\n\n\n<ul><li>The closing\nprice of TeamLease Services was&nbsp;\u20b9 2,590\/- as on 09-January-20. It traded\nat 45x\/ 31x\/ 24x the consensus EPS of&nbsp;\u20b9 57.8&nbsp;\/ 83.3 \/ 110 for FY20E\/\nFY21E\/ FY22E respectively.<\/li><li>Consensus target price is \u20b9 2,900\/- which implies a\nPE multiple of 26x on FY22E EPS of \u20b9 110\/-<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Update&nbsp;on the Indian Equity Market: There was optimism in the global markets after US President Donald Trump\u2019s comments on the Iran conflict eased worries.\u00a0On Thursday, Nifty50 ended 1.6% higher at 12,216. Nifty Realty (+2.7%), Nifty Auto (+2.7%) and Nifty PSU Bank (+2.4%) were the top gainers among sectoral indices. Nifty IT (-0.2%) was the only [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[182],"tags":[246,245],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/613"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=613"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/613\/revisions"}],"predecessor-version":[{"id":614,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/613\/revisions\/614"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=613"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=613"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=613"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}