IT service provider, Happiest Minds, reported profit after tax (PAT) of Rs 56.34 crore in the three months to June, an increase of 8.1% quarter-on-quarter (QoQ), driven by strong demand which led to an increase in its top line.
Its revenues stood at Rs 328.92 crore in Q1FY23, a 9.4% increase sequentially from Rs 300.57 crore in Q4FY22. On a year-on-year (YoY) basis, the revenue increased 34.5% from Rs 244.61 crore while the PAT jumped 57.7% from Rs 35.73 crore YoY.
“We have started fiscal FY23 showing industry leading performance. Our 10-year vision statement is to be a billion-dollar company by 2031. In line with this goal, based on the growth we are experiencing and continued demand for digital services, we are increasing our revenue guidance for FY23 to 25% while targeting to grow at a compound annual growth rate (CAGR) of 25% over the next five years,” said Ashok Soota, executive chairman, Happiest Minds Technologies.
In Q1FY23, the earnings before interest, taxes, depreciation and a mortisation (EBITDA) margin stood at 26.4%. The EBITDA was at Rs 87.75 crore, a slight increase from Rs 81.58 crore QoQ.
Like many companies across sectors, Happiest Minds too is challenged with increased attrition. Its trailing 12 month attrition stood at 24.4% in Q1FY23, a 170 basis points increase from 22.7% in the January-March quarter, which was already a 160 basis points increase sequentially.