Happiest Minds Reports 28% Revenue Growth In Q2

Happiest Minds Technologies Limited, a digital transformation and IT solutions company, has reported steady growth in its second-quarter financial results for the period ending 30 September, 2024. The company noted a year-on-year (YoY) revenue increase of 28.2 per cent and a 12.7 per cent growth in constant currency from the previous quarter. These figures follow recent strategic moves, including acquisitions and new business initiatives, aimed at expanding the company’s operations.

Executive Chairman Ashok Soota commented that the growth aligns with the company’s recent structural changes, such as the acquisition of PureSoftware and Aureus, the launch of a GenAI Business Unit (GBS) and the addition of a senior leader focused on new sales. Soota mentioned that these changes, along with the restructuring of the company into six industry groups led by dedicated managers, are expected to impact revenue and growth positively in future quarters.

For the quarter, the company reported operating revenues of USD 62.4 million, marking a 12.3 per cent  increase from the previous quarter and a 27.0 per cent rise YoY. In rupee terms, total income reached Rs 54,867 lakh, reflecting a 12.1 per cent rise from the previous quarter and a 27.9 per cent YoY increase. Earnings before interest, tax, depreciation and amortisation (EBITDA) for the quarter stood at Rs 11,882 lakh, accounting for 21.7 per cent of total income, with a YoY increase of 13.4 per cent. Profit after tax (PAT) declined by 15.3 per cent YoY to Rs 4,951 lakh, primarily due to acquisition-related non-cash charges and additional financing costs from recent expansions.

In the half-year results for FY 2024, Happiest Minds recorded a 23.1 per cent YoY growth in constant currency. Operating revenue in US dollars reached USD 117.9 million, marking a 22.0 per cent YoY increase, while the company’s total income for the first six months was Rs 103,793 lakh, a 24.5 per cent YoY rise. EBITDA for this period was Rs 23,553 lakh, representing 22.7 per cent of total income, though PAT for the half-year declined by 13.9 per cent to Rs 10,054 lakh due to the costs associated with acquisitions.

The company reported free cash flows of Rs 11,612 lakh for the second quarter and Rs 23,181 lakh for the half-year. Diluted earnings per share (EPS) were Rs 3.29 for the quarter and Rs 6.68 for the half-year, impacted by non-cash expenses related to acquisitions.