DBT Bureau
Bengaluru, 13 August 2024
Happiest Minds Technologies’ share price was trading down 2.15% at Rs 756 in the morning trade after the company posted decline in its net profit.
The Bengaluru-headquartered company posted a 12.5% drop in its net profit at Rs 51.03 crore. The company said that the decline was due to non-recurring expenses this quarter, compared to a large exceptional write-back in the prior period and increased amortisation and financing costs from its recent acquisitions.
Its revenue for the quarter grew 18.7% YoY to Rs 463.83 crore. In US dollar term, revenue was at $55.5 million, which was a rise of 11.4% sequentially in constant currency basis.
Venkatraman Narayanan, MD & CFO said, “The quarter was eventful, and our results for the same include that of our two acquisitions- PureSoftware and Aureus. Our revenues in constant currency grew year over year by 17.8% while EBITDA grew by 13.3%. Variation in PBT and PAT are primarily on account of non-recurring expenses in the current quarter versus a large exceptional write-back in the previous, and increased amortization and financing costs arising from acquisitions.”
The company’s Generative AI Business Services (GBS) unit contributed Rs 7.13 crore to the topline in Q1.
“Happiest Minds has begun the new fiscal year by setting the foundation for the best performance since our IPO. Establishment of Gen AI business services, BU reorganization with industry groups into profit centers, and two excellent acquisitions have set us on a path of accelerated growth, which will be further manifested in successive quarters,” said Ashok Soota, Executive Chairman, Happiest Minds Technologies.
Happiest Minds’ workforce grew to 6,599 employees in the first quarter ended June 2024, up from 5,168 in the previous quarter. Attrition increased marginally to 13.5% from 13%, while utilisation improved to 78.2% from 75.1%.