Happiest Minds Technologies Q4 FY24: PAT Grows 25%, Revenue Up 10%

Happiest Minds Technologies reported a commendable close to its financial year with fourth quarter earnings indicating strong growth across key financial metrics. The Bangalore-based IT services firm announced that its operating revenue for the quarter ended 31 March 2024, stood at Rs 41,729 lakh, up 10.4 per cent year-on-year (YoY).

The company’s Profit After Tax (PAT) for Q4 FY24 came in at Rs 7,198 lakh, which reflects a growth of 20.7 per cent compared to the previous quarter and a 24.8 per cent increase from the same period last year. 

Happiest Minds also reported a Total Income of Rs 44,250 lakh for the quarter, up by 1.9 per cent from the previous quarter and 14.5 per cent YoY. EBITDA followed suit with a healthy growth, recorded at Rs 10,822 lakh, which is 24.5 per cent of the total income.

In a statement, Ashok Soota, Executive Chairman at Happiest Minds Technologies, said “Happiest Minds has demonstrated resilience in achieving our financial objectives for the long term. The newly created Gen AI business unit, creation of six new Industry Groups and successful closure of two acquisitions has put us back on course towards accomplishing our long-term vision of USD 1 billion in revenues by FY31.”

In terms of liquidity, the firm generated free cash flows of Rs 10,744 lakhs during the quarter. Additionally, earnings per share (EPS) were marked at Rs 4.79 on a diluted basis.

On the operational front, Happiest Minds reported a slight decrease in its utilisation rate, which dipped to 75.1 per cent from 76.7 per cent in the previous quarter. Despite this, the company managed to grow its client base to 250, adding 10 new clients in the quarter, which signals continued business expansion and client trust.

Joseph Anantharaju, Executive Vice Chairman at Happiest Minds Technologies, said, “We have onboarded ten new customers and have built up a good sales pipeline for FY25. This, along with the cross-selling opportunities afforded by our acquisitions, we are well positioned for a rewarding FY25. Our Customer Happiness Survey this year has yielded excellent and best net promoter scores, validating our compelling customer value proposition and quality execution.”

The employee count as of 31 March 2024, was 5,168 and the company’s attrition rate has improved from 14.1 per cent to 13.0 per cent over the past quarter, indicating effective human resource strategies.

Reflecting confidence in its financial health and commitment to shareholder returns, the Board of Directors of Happiest Minds has recommended a final dividend of Rs 3.25 per equity share of face value Rs 2 for the financial year 2023-24, subject to shareholder approval.