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Happiest Minds Q2 net profit up 33.7% YoY to Rs 59.4 crore

Digital comprises nearly 97% of the company’s total revenue, the highest among its Indian peers. Within digital, cloud contributes about 45% to the revenue.

Happiest Minds Q2 net profit up 33.7% YoY to Rs 59.4 crore
Demand for IT in 2023 is expected to be strong as enterprises push forward with digital business initiatives in response to economic turmoil.

Ashok Soota-led Happiest Minds Technologies posted a net profit of Rs 59.4 crore for the September quarter, up 33.7% from a year ago and 5.4% sequentially. Revenue at the Bengaluru-based software services firm grew 34.4% from a year earlier and 8.1% sequentially to Rs 355.5 crore for the second quarter.

“The results reflect the relevance of our digital offerings to our clients and our ability to navigate an uncertain environment based on our value proposition of revenue enhancement and resilience. We ensure that our customers remain committed to their digital strategy and sustain their investment across various initiatives. This provides opportunities to continue expanding our presence and add value to these initiatives,” said Joseph Anantharaju, executive vice chairman, Happiest Minds.

Revenue in US dollar terms grew 5% on a sequential basis to $44.3 million on the back of strong growth from client’s digital transformation initiatives. Digital comprises nearly 97% of the company’s total revenue, the highest among its Indian peers. Within digital, cloud contributes about 45% to the revenue.

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Worldwide IT spending is projected to total $4.6 trillion in 2023, an increase of 5.1% from 2022, according to the latest forecast by research firm Gartner. Demand for IT in 2023 is expected to be strong as enterprises push forward with digital business initiatives in response to economic turmoil.

Happiest Minds added 16 clients during the quarter, taking the total number of clients to 226, as of 30 September. It made a net addition of 393 employees, taking the total headcount to 4,581, as of September quarter.

The attrition rate on a trailing 12-month basis moderated to 23.5% in the September quarter from 24.4% in the preceding three months.

Happiest Minds declared its earnings after market hours on Thursday. Ahead of the earnings, the shares closed up 2.18% at Rs 1,008.50 on the BSE.

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