The digital transformation and IT solutions company propels ahead with growth of 12.7% q-o-q ; 28.2% y-o-y in constant currency
FinTech BizNews Service
Mumbai, 14 November, 2024: Happiest Minds Technologies Limited (NSE:HAPPSTMNDS), a ‘Born Digital. Born Agile’, a digital transformation and IT solutions company, today announced its consolidated results for the second quarter ended September 30, 2024, as approved by its Board of Directors.
Ashok Soota, Executive Chairman, said, “Happiest Minds has delivered our best growth results since the last two years with 12.7% QoQ growth and 28.2% YoY growth. The transformational changes we initiated this year are all gathering momentum. These changes include the acquisition of PureSoftware and Aureus, the creation of our GenAI Business Unit (GBS), hiring a senior leader to expand net new (NN Sales), and creating six Industry Groups, each headed by an Industry Manager. The full impact of all these changes on revenue and growth will become visible in the quarters ahead.”
Key Financial highlights
· Revenue in constant currency grew 12.7% q-o-q and 28.2% y-o-y
· Operating Revenues in US $ stood at $62.4 million growing 12.3% q-o-q and 27.0% y-o-y
· Total Income of Rs54,867 lakhs growing 12.1% q-o-q and 27.9% y-o-y
· EBITDA of Rs11,882 lakhs, 21.7% of Total Income (growth of 1.8% q-o-q and 13.4% y-o-y)
· PAT of Rs4,951 lakhs 9.0% of Total Income (decline of 3.0% q-o-q and 15.3% y-o-y)*
· Free cash flows of Rs 11,612 Lakhs and EPS (diluted) at ₹ 3.29
Venkatraman Narayanan, MD & CFO, said, “We are pleased about our growth in revenues and profits in the first half of FY25. Total income has grown by ₹205 crores, EBITDA by ₹28 crores and Operating Margins by ₹12 crores. Revenue growth of 28.2% in constant currency and EBITDA margin of 22.7% compare well with our guidance range of 30% to 35% and 20% to 22%, respectively. Our growth in margins is after counting for significant investments in our Gen AI business unit and higher than comparable company compensation increases for our people.”
Joseph Anantharaju, Executive Vice Chairman, said, “The results demonstrate Happiest Minds’ commitment to its customers and be the partner of choice in their strategic imperatives. Backed by our strong capabilities in Data, AI, GenAI, Automation, IoT and Cyber Security, the quarter was marked by solid new wins and expanding our base into existing client relationships through our strong account mining practices.”
Clients:
· 281 as of September 30, 2024
· 11 additions in the quarter
Our People - Happiest Minds:
· 6,580 Happiest Minds as of September 30, 2024
· Trailing 12-month attrition of 14.4% (13.5% in the previous quarter)
· Utilization of 76.3%, from 78.2% in last quarter
Key wins
· For a USA-based energy tech company, this new win entails Happiest Minds providing consulting-led solution to develop their unified IoT platform for the combined heat and power solution.
· For a US semiconductor company, Happiest Minds was chosen to design and develop their reference hardware platforms.
· For a global leader in Electronic Design Automation, Happiest Minds is building its prototype SoC designs on FPGA platforms.
· For a North America-based health-tech company offering practice management solutions for professionals, Happiest Minds has been chosen to transform their entire reporting system to a Microsoft stack.
· For the world's leading digital twin platform for the energy sector, Happiest Minds was chosen to drive their Gen AI Innovation aimed at field data collection and retrieval.
· For one of the largest brewers in the world, Happiest Minds has been chosen as a strategic partner to drive their Analytics and AI initiatives for demand forecasting.
· For a European Health Research Institute, Happiest Minds is building their AI/ML data platform.
· For a leading ANZ retailer, Happiest Minds is providing Data Engineering and BI services (Snowflake & Power BI) for their Product Lifecycle Management project.
· For an Australia based healthcare training provider, Happiest Minds has been chosen to design and build their learning platform.
· For a leading FinTech trading platform in the Middle East, Happiest Minds was chosen as a partner to secure its critical IT infrastructure and business applications.
· For an Africa-based market leader in logistics and supply chain, Happiest Minds has been chosen to implement core banking and Buy Now Pay Later (BNPL) modules from its award-winning Arttha® Platform.
· For a large public sector bank based out of India, Happiest Minds has been chosen as their strategic cybersecurity partner to oversee the end-to-end design and implementation of their cyber security program.
· The Board of Directors of the Company, at their meeting held on November 13, 2024, has recommended an interim dividend of Rs2.5 per equity share of face value Rs 2/- for the financial year 2024-25, subject to shareholder approval.
