Happiest Minds Technologies reports 11.7% Y-o-Y gowth in Q3 FY 24, surpassing EBITDA guidance

Happiest Minds Technologies Limited (NSE: HAPPSTMNDS), a renowned digital transformation and IT solutions company, today announced its consolidated results for the quarter ended December 31, 2023, as approved by its Board of Directors. The company has once again demonstrated its resilience and agility in the digital sector, showcasing industry-leading revenue growth of 11.7% year-over-year, while exceeding EBITDA guidance for the fifteenth consecutive quarter.

Strong Financial Performance in a Challenging Market

Amid a generally challenging quarter for the industry, Happiest Minds has emerged as a beacon of growth and stability. According to Ashok Soota, Executive Chairman of Happiest Minds, the company’s results reflect the robustness of their business model, which continues to deliver exceptional revenue growth. The company has strengthened its sales engine by creating a focused Gen-AI Business unit and plans to establish five Industry Groups from April 2024, operating as independent profit centers. These strategic moves are expected to significantly contribute to the company’s growth in FY25.

Key Financial Highlights: Q3 and Nine Months Performance

In the quarter ending December 31, 2023, Happiest Minds reported a constant currency revenue growth of 0.8% quarter-over-quarter and 9.4% year-over-year. The company’s operating revenues in US dollars stood at $49.4 million, showing a growth of 0.5% quarter-over-quarter and 9.0% year-over-year. The total income reached ₹43,417 lakhs, marking a growth of 1.2% quarter-over-quarter and 15.9% year-over-year. The EBITDA was at ₹10,519 lakhs, constituting 24.2% of the total income and demonstrating a growth of 0.4% quarter-over-quarter and 8.2% year-over-year.

For the nine months ended December 31, 2023, the constant currency revenue growth was at 11.5% year-over-year. Operating revenues in US dollars stood at $146.1 million, showing a growth of 10.8% year-over-year. The total income for this period was ₹1,26,753 lakhs, marking a growth of 19.1% year-over-year. EBITDA for the nine months reached ₹31,300 lakhs, constituting 24.7% of the total income and demonstrating a growth of 12.0% year-over-year.

Management’s Perspective on Growth and Profit

Venkatraman N, MD & CFO of Happiest Minds, expressed satisfaction with the company’s healthy profit growth of 12% in the current nine-month period, highlighting that the growth in profit numbers came despite above-industry-average pay increases and continued investments in newer technologies. Joseph Anantharaju, Executive Vice Chairman, emphasized the company’s strong value proposition across various sectors like cloud, data, analytics, AI, intelligent automation, and cyber security. He also noted the addition of ten new customers for the quarter, with the billion-dollar customer count increasing to 59.

Commitment to Innovation and Work Culture

Happiest Minds remains dedicated to fostering a strong, diverse, equitable, and inclusive culture, which has been recognized by the Great Place To Work Institute. The company has made significant strides in various key project wins across sectors like global education, automotive services, healthcare, and property marketplaces, positioning itself as a strategic partner in accelerating digital transformation globally.

In summary, Happiest Minds Technologies’ latest financial results not only showcase its consistent growth in a challenging market but also its commitment to innovation, customer satisfaction, and employee welfare, setting it apart in the competitive digital transformation and IT solutions industry.