Happiest Minds Technologies, a digital transformation and IT solutions company, reported robust revenue growth in the quarter ended June. The company’s consolidated revenue in constant currency increased by 11.4% quarter-on-quarter (QoQ) and 17.8% year-on-year (YoY) to Rs 463.83 crore.
“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 reorganisation with industry groups into profit centres, and two excellent acquisitions have set us on a path of accelerated growth, which will be further manifested in successive quarters,” Ashok Soota, executive chairman of Happiest Minds, said.
Despite the positive revenue growth, the company’s Ebitda margin slightly contracted to 23.9% of total income. And the company’s net profit declined by 29.1% QoQ to Rs 51.03 crore, which was 10.4% of total income. This decline was largely due to non-recurring expenses and increased amortisation and financing costs related to recent acquisitions.
Venkatraman Narayanan, MD & CFO of Happiest Minds, said, “Acquisitions per se did not have the impact that we were talking about. When you look at our numbers on revenues, it has impacted us positively. We have grown. However, at our size of operations, a swing of about Rs 21-22 crore, including a Rs 13 crore write-back last quarter and a Rs 6.5 crore impact due to acquisition costs this quarter, created a visible impact on PBT and PAT”.
Nonetheless, Happiest Minds continued to expand its client base, ending the quarter with 279 clients, an increase of 41 clients over the previous quarter. Notably, the number of million-dollar clients also rose significantly, from 48 to 58. The average revenue per customer also increased to $840,000 from $794,000 in the previous quarter.
On the GenAI front, the company said it has conducted around 15 proof-of-concept (POC) projects, with a few progressing to full implementation.