DBT Bureau
Pune, 5 Feb 2025
Happiest Minds Technologies Limited, a digital transformation and IT solutions company, today reported its consolidated results for the Third quarter that ended December 31, 2024, as approved by its Board of Directors.
Ashok Soota, Executive Chairman, said, “Happiest Minds has reported another quarter of strong deal momentum and performance with a revenue growth of 28.2% y-o-y in constant currency and we are set to report our best performance since IPO in absolute terms. We launched four transformational initiatives this year which included the acquisitions of Puresoftware and Aureus. The success of the same is evident from our YoY growth. The other three initiatives will accelerate our organic growth in the year ahead. These initiatives are the creation of the GenAI Business Unit, Verticalization into six Industry groups and induction of our Chief Growth Officer.
At our Generative AI Business Services (GBS), we are collaborating with our clients to explore opportunities for leveraging generative AI to enhance business value, efficiency, and productivity. Our goal is to integrate generative AI features into their products, and services and provide them with a competitive advantage. The adoption of this promising technology has picked up speed with our customers embarking on enterprise-wide adoption. Apart from projects already delivered, we have about 15 projects in a proof-of-concept stage which will lead to significant orders/projects in the next fiscal. All our transformational initiatives will also ensure superior performance ahead.”
Key Financial highlights
The quarter ended on December 31, 2024
· Revenue in constant currency grew 0.8% q-o-q and 28.2% y-o-y
· Operating Revenues in US $ stood at $62.7 million growing 0.5% q-o-q and 27.0% y-o-y
· Total Income of Rs 55,376 lakhs growing 0.9% q-o-q and 27.5% y-o-y
· EBITDA of Rs 11,686 lakhs, 21.1% of Total Income (decline of 1.6% q-o-q and growth of 11.1% y-o-y
· PAT of Rs 5,010 lakhs 9.0% of Total Income (growth of 1.2% and decline of 16.0% y-o-y*)
· Free cash flows of Rs 11,180 Lakhs and EPS (diluted) at Rs 3.33
For the nine months ended December 31, 2024, the company reported strong financial performance. Revenue in constant currency grew by 24.8% year-on-year (y-o-y), while operating revenues in US dollars reached $180.7 million, reflecting a 23.7% y-o-y increase. Total income was Rs 159,170 lakhs, growing 25.6% y-o-y. EBITDA stood at Rs 35,240 lakhs, or 22.1% of total income, marking a 12.6% y-o-y growth. Profit After Tax (PAT) was Rs 15,065 lakhs, accounting for 9.5% of total income, but declined by 14.6% y-o-y, primarily due to acquisition-related non-cash charges and financing costs. Despite the decline in PAT, free cash flows remained strong at Rs 34,361 lakhs, and earnings per share (EPS, diluted) were Rs 10.01.
Venkatraman Narayanan, MD & CFO, said, “We continue to deliver revenue growth, operating and EBITDA margins despite investments in our start-up business unit of Generative Business Services. Profits before tax do show the impact of non-cash and other charges emanating from acquisitions. Our focus is to cover these through the benefits of consolidated operations and growth. Cash Earnings Per Share a metric that reflects the health of the business has shown a growth of about 12.6% year over year”
Joseph Anantharaju, Executive Vice Chairman, said, “The results reflect our continued ability to execute and deliver high-quality digital capabilities to our customers. During the quarter, Happiest Minds accelerated its net new growth opportunities while increasing the number of large customers. Our acquisitions are allowing us to diversify our revenue base across geos and verticals while leveraging synergies to accelerate growth.”
Clients:
· 278 as of December 31, 2024
· 7 additions in the quarter
Happiest Minds Employee Overview:
- Total workforce: 6,630 as of December 31, 2024
- Trailing 12-month attrition rate: 15.3% (up from 14.4% in the previous quarter)
- Utilization rate: 78%, an improvement from 76.3% in the prior quarter
Achievements
· For a global technology & service major, Happiest Minds is partnering to implement core banking technology to streamline operations and enhance client satisfaction, for the mortgage division of a large multinational banking and financial services company.
· For a US logistics tech provider, Happiest Minds is driving its digital transformation agenda and building intelligent conversational dashboards using Gen AI.
· For an American multinational financial services company, Happiest Minds is transforming its Enterprise Content Management Systems.
· For a US Healthtech company, Happiest Minds is providing Infrastructure Management Services.
· For a global EV Original Equipment Manufacturer(OEM), Happiest Minds was chosen as one of the key partners to build their data platform.
· For a global MedTech company, Happiest Minds is leveraging Microsoft Power Platform to build their engineering platform.
· For a Middle East-based global bank, Happiest Minds is providing Risk and Governance consulting services.
· For an India-based global payments solution company, Happiest Minds was chosen to co-develop multiple mission-critical applications.
Award Wins:
· Happiest Minds is recognized among 2024 Avtar & Seramount Best Companies for Women in India in IT and Exemplar of Inclusion in the Most Inclusive Companies Index
· Happiest Minds is recognized among Top 100 India’s Best Workplaces™ for IT & IT-BPM 2024 by Great Place To Work®
· Happiest Minds’ Integrated Annual Report 2024 is ranked #42 globally, wins Gold and Silver Awards at the LACP 2024 Spotlight Awards
Analyst Mentions:
· Happiest Minds is ‘Major Contender’ in Everest PEAK Matrix for Microsoft Azure Services
· Happiest Minds is ‘Major Contender’ in Everest PEAK Matrix for AWS Services
· Happiest Minds is ‘Major Contender’ in Everest Group in the Digital Workplace Services PEAK Matrix® Assessment 2024: Mid-market Enterprises
