Happiest Minds Technologies Q3 Results: Net profit rises 3.6% to ₹59.6 crore, revenue up 12% YoY

Happiest Minds Technologies Q3 Results: Happiest Minds Technologies announced it October-December quarter results for fiscal 2023-24 (Q3FY24), reporting a rise of 3.5 per cent in consolidated net profit at ₹59.6 crore, compared to ₹57.5 crore in the year-ago period. The IT services company's revenue from operations in the third quarter of current fiscal rose 12 per cent at ₹410 crore, compared to ₹367 crore in the corresponding period last year.

On the operating front, the earnings before interest, tax, depreciation, and amortisation (EBITDA) in the December quarter rose 8.2 per cent to ₹105 crore, compared to ₹97.2 crore in the year-ago period. 

The company said that it has beaten EBITDA profit guidance for the fifteenth quarter in a row. The EBITDA margin stood at 19.7 per cent in the third quarter compared to 24.4 per cent in the corresponding period last year. 

“We have delivered healthy growth in profits of 12 per cent  in the current nine month period and have beaten profit guidance for the fifteenth quarter in a row. I would like to reiterate that our growth in profit numbers is despite considering above industry average pay increase, and continued investments in newer technologies,'' said Venkatraman N, Managing Director & Chief Financial Officer, Happiest Minds Technologies.

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Happiest Minds' revenue in constant currency reported a 0.8 per cent quarter-on-quarter increase and a 9.4 per cent year-on-year growth. The operating revenues in US dollars stood at $49.4 million, reflecting a 0.5 per cent quarterly expansion and a nine per cent annual gain. Happiest Minds free cash flows stood at ₹98.94 crore. Also, the earnings per share (diluted) for the quarter stood at ₹3.96.

"..continued to deliver industry-leading revenue growth in a generally difficult quarter for the industry. We have strengthened our sales engine by creating a focused Gen-AI business unit. Effective April 2024, we will be creating five industry groups, operating as independent profit centres and led by specialised industry managers. We expect these changes to add significantly towards our FY25 growth,'' said Ashok Soota, Executive Chairman, Happiest Minds Tech.

The company reported a total of 245 clients as of December 31, 2023 with 10 new additions in the December quarter. The total employee strength stands at 5,246 as of December 31, 2023 and the trailing 12 months attrition rate came in at 14.1 per cent, compared to 14.4 per cent in the preceding September quarter.

The company's board has approved the re-appointment of Ashok Soota as the whole-time director of the company, designated as Executive Chairman, for a term of five years with effect from April 01, 2024, to March 31, 2029 subject to the approval of shareholders of the company.

On Wednesday, shares of Happiest Minds Technologies settled 0.95 per cent lower at ₹925.80 apiece on the BSE.