Happiest Minds Q3 FY24: PAT Rises 2% QoQ

Happiest Minds Technologies on Wednesday announced its consolidated results for the third quarter ending 31 December 2023. The company reported a constant currency revenue growth of 0.8 per cent quarter-on-quarter (QoQ) and 9.4 per cent year-on-year (YoY). 

Total income for the quarter stood at Rs 434.17 crore, reflecting a growth of 1.2 per cent QoQ and 15.9 per cent YoY. The company's EBITDA reached Rs 105.19 crore, representing 24.2 per cent of the total income, with a growth of 0.4 per cent QoQ and 8.2 per cent YoY. The Profit After Tax (PAT) recorded Rs 59.62 crore, exhibiting growth of 2 per cent QoQ and 3.6 per cent YoY.

Operating revenues in US dollars reached USD 49.4 million, indicating a 0.5 per cent increase QoQ and 9 per cent rise YoY.

In a statement, Venkatraman N, MD & CFO, at Happiest Minds Technologies said, “We have delivered healthy growth in profits of 12 per cent in the current nine-month period and have beaten profit guidance for the fifteenth quarter in a row. I would like to reiterate that our growth in profit numbers is despite considering above industry average pay increase, and continued investments in newer technologies.”  

Happiest Minds reported free cash flows amounting to Rs 98.94 crore and a diluted Earnings Per Share (EPS) of Rs 3.96 for the quarter. 

Looking forward, Happiest Minds Technologies is set to implement strategic changes effective April 2024. The company plans to create five Industry Groups, operating as independent profit centres and led by specialised industry managers. This strategic move is anticipated to make significant contributions towards the company's growth in the fiscal year 2025, the company said.

The company’s headcount was recorded at 5,246 as of 31 December 2023, down from 5,285 employees in the last quarter. Attrition was recorded at 14.1 per cent (14.4 per cent in the previous quarter). Meanwhile, utilisation grew to 76.7 per cent, from 75.6 per cent in last quarter.