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IT Consulting and Software company Happiest Minds Technologies announced Q2FY24 results:
1. Financial Performance:
- Happiest Minds reports industry-leading growth of 11.6% YoY in constant currency.
- EBITDA grew by 11.1% YoY to Rs 105 crore.
- Strong EBITDA margin of 24.4%.
- Total Income of Rs 42,883 lakhs, a growth of 6.0% QoQ and 19.3% YoY.
- PAT of Rs 5,846 lakhs for the quarter.
2. Business Outlook:
- Revised revenue growth guidance for the year to 12% on an organic basis.
- Retaining EBITDA guidance of 22% to 24%.
- Long-term growth aspiration of becoming a billion-dollar enterprise by 2031.
- Initiating a Generative AI business unit (GBS) to capitalize on the transformative impact of AI.
3. Operational Highlights:
- Trailing 12 months attrition of 14.4%.
- Utilization of 75.6%.
- Net addition of 237 employees in the quarter.
- 7 new client additions, reaching a total of 244 clients.
4. Key Project Wins:
- Chosen by a large online retailer to design interactive user interfaces and provide automation services for their IoT division.
- Selected by a global fabless semiconductor company for ASIC Design and verification services.
- Partnership with a large utilities company in the US to provide data engineering and governance services.
- Engaged by a leading warehouse club operator in the US for security assessment services.
Ashok Soota, Executive Chairman, said, “Happiest Minds continues to lead the industry on growth and profitability metrics. We have yet again delivered a quarter of superior performance on all fronts. Separately, I would like to express my gratitude to all Happiest Minds and stakeholders for completing our 12th anniversary.
We had given revenue growth guidance for the year of 25% without making a distinction between organic and inorganic growth. Based on an assessment of market trends we are revising our revenue growth guidance for the year to 12% on an organic basis. Additional growth, if any, due to acquisition will be over and above this guidance. We retain our EBITDA guidance of 22% to 24% and remain committed to our long-term growth aspiration of becoming a billion-dollar enterprise by 2031.
I am happy to announce a major new organizational and strategic initiative for Happiest Minds. We are starting with the immediate effect of a Generative AI business unit (GBS) to capitalize on the transformative impact of Generative AI. The existing PES and DBS businesses will be combined into the PDES business unit. There will be no change in IMSS. We will therefore retain 3 BUs: PDES, IMSS, and GBS.”
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