Business

Happiest Minds Technologies Outshines EBITDA Expectations with Robust Year-End Financial Performance

SAN JOSE, Calif., LONDON, and BENGALURU, India, May 7, 2024 /PRNewswire/ -- In an environment marked by economic fluctuation, Happiest Minds Technologies Limited (NSE: HAPPSTMNDS) has emerged with a strong financial stature for the fourth quarter and annual period concluding on March 31, 2024, exceeding EBITDA expectations. The executive leadership of the company, during their board meeting, accented their sustained growth and proposed a shareholder-pleasing final dividend of ₹ 3.25 per share, taking the cumulative yearly dividend to ₹ 5.75.

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Financial Focal Points of Robust Growth

Ashok Soota, Executive Chairman, articulated the resilience Happiest Minds has shown in realizing its long-term financial aspirations. Soota also highlighted the strategic developments, including the launch of the Gen AI division and six new Industry Groups, along with strategic acquisitions charting the path for their vision of securing US$ 1 billion in revenues by FY31.

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Fourth Quarter Financial Rundown

The final quarter witnessed increments in constant currency revenue by 1.4% q-o-q and 9.5% y-o-y, reflecting not only stability but also an upward trajectory. The operating revenue, when reported in US dollars, reached $50.1 million, marking an increase of 1.4% q-o-q and 9.1% y-o-y. The company amassed a total income of ₹ 44,250 lakhs, featuring a growth percentage of 1.9% q-o-q and 14.5% y-o-y. Notably, their EBITDA stood at ₹ 10,822 lakhs, signaling 24.5% of the Total Income, and yielded growth of 2.9% q-o-q and 7.6% y-o-y. Moreover, the Profit After Tax (PAT) saw a remarkable leap of 20.7% q-o-q and 24.8% y-o-y, establishing Happiest Minds' efficient management and the lucrative promise of their market strategies.

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Annual Financial Highlights

Assessing the annual financial spectrum, the growth in constant currency revenue was recorded at 11% y-o-y. The Operating Revenues in US dollars stood at $196.1 million, indicating a growth of 10.3% y-o-y. Total Income experienced an uptick of 17.9% y-o-y, arriving at ₹ 171,003 lakhs. The company’s EBITDA for the year was ₹ 42,122 lakhs, forming 24.6% of the Total Income, exhibiting a growth of 10.9% y-o-y. PAT reflected a lift of 7.5% y-o-y, while free cash flows and EPS (diluted) for the year also demonstrated promising numbers.

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Strategic Leadership's Perspective on Performance and Growth

Venkatraman Narayanan, Managing Director and CFO, expressed pride in the company's achievements, detailing a resonant yearly revenue growth in constant currency of 11% and an EBITDA margin of 24.6%. Amidst challenging industry conditions, the strides made were commendable, bolstered by strategic ventures like the acquisition of PureSoftware Technologies and Macmillan Learning, enhancing the growth narrative while creating stakeholder value.

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Joseph Anantharaju, Executive Vice Chairman, voiced his optimism on the customer front. He revealed the addition of ten new clients and pitched a robust sales pipeline for FY25. With the M&A activities providing a plethora of cross-selling opportunities, the organization seems well-matched for not only a profitable FY25 but also enjoys high net promoter scores, underpinning their compelling customer value propositions and superior execution standards.

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Client Milestones and People-Oriented Developments

The company proudly boasts a roster of 250 clients with ten fresh additions in the quarter under review. Employee strength stood at 5,168 Happiest Minds, while reaching a lowered trailing 12-month attrition rate of 13.0%. Utilization rates were managed at 75.1%, indicating efficient resource management despite a slight dip from the previous quarter’s 76.7%.

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Significant Business Advancements

Accomplishments were manifold in the fourth fiscal quarter. Happiest Minds sealed partnerships and deals across various sectors. For Enercon, the renowned wind energy technology company, Happiest Minds was selected as a strategic partner to construct their wind energy optimization platform. MindSculpt Analytics, active in healthcare solutions, aligned with Happiest Minds for an advanced AI Medical Preventive & Diagnostic solution. Furthermore, for a prestigious credit union service organization, Happiest Minds engaged in the creation of GenAI solutions to enhance employee training and customer support functions. And notably, for a global hyperscaler's professional services division, they were chosen to design and implement a secure, scalable connected vehicle platform.

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Acclaims and Recognitions

In an expression of the company’s excellence, accolades have been bestowed upon Happiest Minds. They were noted among 'Top 50 India's Best Workplaces™ in Health and Wellness 2023' by Great Place To Work® Institute. Additional awards included the 'Best Tech for Security' at the IDEA Awards and 'Top Firms to Work for in AI & Analytics' at the 3AI ACME Awards, alongside personal recognition for Sridhar Mantha as the 'AI Leader of the Year'.

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Market Standing and Analyst Positions

In the domain of business analysis, the company has been categorized as 'Aspirant' by Everest and 'Pioneers' by Avasant in their respective ESG indexes. These designations signify Happiest Minds as a growing force and an innovator in IT services, particularly within the retail sector and ESG assessments.

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Forward Movements and Shareholder Updates

The organizational progress is further evidenced by the Board of Directors' decision to recommend a final dividend of ₹ 3.25 per share for the fiscal year 2023-24, subject to shareholder approval. This proposition comes as a reflection of the company's sound financial health and commitment to delivering shareholder returns.

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Invitation for Investor Scrutiny

Further details and in-depth insights can be acquired from the investor presentation available on the company website (Investors section). This step reaffirms Happiest Minds' commitment to transparency and investor relations.

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Empowering Digital Transformation: About Happiest Minds Technologies

Happiest Minds Technologies Limited (Happiest Minds Technologies), listed as NSE: HAPPSTMNDS and positioned as a Mindful IT Company, pioneers in enabling digital transformation for enterprises and tech providers by fostering enhanced customer experiences, business productivity, and actionable insights. Their approach harnesses a spectrum of disruptive technologies such as artificial intelligence, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/augmented reality among others. Delivering its services across various sectors like automotive, BFSI, consumer goods, EduTech, healthcare, and more, the company has a robust presence in global markets, encompassing the United States, United Kingdom, Canada, Australia, and the Middle East. Renowned for excellent corporate governance, awarded by Golden Peacock and ICSI, and certified as a Great Place to Work®, Happiest Minds has its headquarters nestled in Bangalore, India.

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A Note of Prudence: Safe Harbor Statement

In respect to future expectations, Happiest Minds Technologies' declarations are subject to uncertainties that could lead to substantial differences in forthcoming results. Factors such as the COVID-19 pandemic potentially decreasing customer technology spend, protracting client purchasing decisions, and influencing the company's servicing capabilities, can all negatively steer future revenues, profit margins, and overall fiscal performance. External variables, some of which are influenced by pandemic-induced conditions, could also impair operations, though no guarantees are provided regarding the updating of these forward-looking statements.

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Engaging with Happiest Minds Technologies

Media inquiries and further information can be directed to the Media Contact, Kiran Veigas, through email: [email protected]. Details of the corporate emblem can be found at Happiest Minds Logo.

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Final Thoughts

Happiest Minds Technologies Limited holds a resolute stance in the face of market uncertainties, displaying financial dexterity, strategic growth, and client-centric achievements. Amidst their financial successes, the company continues to invest in technological advances, acquisitions, customer relations, and workplace environment, paving the way for what could be another banner year as they eye the one billion dollar revenue landmark.

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SOURCE Happiest Minds Technologies Limited