Bengaluru, NFAPost: Leading mid-tier IT firm Happiest Minds Technologies fourth-quarter consolidated net profit for the 4th quarter ending fiscal 2023 grew 11% to Rs 58 crore compared with Rs 52 crore during the same period last fiscal.
Revenue from operations climbed 26% from the year-earlier period to Rs 378 crore comparted with Rs 310 crore in the same period last fiscal.
The company reported a 28% YoY growth in net profit to Rs 231 crore compared with Rs 181 crore during the same fiscal. The total revenue from operations jumped 31% to Rs 1,430 crore during the financial year 2023 compared with Rs 1,130 crore in the previous financial year.
Although the company missed its revenue growth target by 1.3%, Happiest Minds Technologies Executive Chairman Ashok Soota explained that this was due to the right-shifting of some Q4 revenues. However, the strong EBITDA performance exceeded the upper band of their guidance range of 22 to 24%, more than compensating for the missed revenue target.
“We have missed our revenue growth target by 1.3% due to the right-shifting of some Q4 revenues. This has been more than compensated by delivering an EBITDA which exceeded the upper band of our guidance of 22 to 24%. In view of our strong business pipeline, we are planning a record people addition of 1,300. Accordingly, we are retaining our FY24 revenue guidance growth at 25%,” said Happiest Minds Technologies Executive Chairman Ashok Soota.
Happiest Minds made campus offers to 450 freshers in FY23 and all of them would come onboard in FY24. During the current fiscal, the company would hire 1,300.
Happiest Minds Technologies MD & CFO Venkatraman N expressed satisfaction with the company’s growth and profitability, noting that this is the 12th consecutive quarter with an EBITDA of over 25%. As a result of its strong financial performance, the company is recommending a final dividend of Rs 3.4 per share.
Happiest Minds Technologies Executive Vice Chairman Joseph Anantharaju highlighted the company’s value proposition and effective land and expand strategy, which has led to good customer metrics.
“The average revenue per customer and the number of billion-dollar corporations have consistently increased during the fiscal year. The company also saw an improvement in pipeline and deal velocity in the second half of the quarter, setting them up for a successful first quarter and fiscal year 2024,” said Happiest Minds Technologies Executive Vice Chairman Joseph Anantharaju.
Happiest Minds has 237 clients as of March 31, 2023, with 16 new additions during the quarter. The company employs 4,917 people as of March 31, 2023, with a net addition of 306 during the quarter. The trailing 12-month attrition rate was 19.8%, and the utilization rate was 74.6%, down from 80.1% in the previous quarter.
In the fourth quarter of the fiscal year 2023, Happiest Minds secured several key projects wins across a variety of industries, including EduTech, gaming hardware, recreational travel and hospitality, industrial technology, property and casualty insurance, loyalty programs, and quick service restaurants.
The Bengaluru-headquartered company was recognised with several awards, including the ICAI Award for Excellence in Financial Reporting 2021-22, and their MD & CFO, Mr Venkatraman Narayanan, was recognized as a ‘Leading CFO of the Year’ at the CII CFO Excellence Awards 2022. Happiest Minds was also named among the Top 50 India’s Best Workplaces™ for Building a Culture of Innovation 2023, and the Top 10 India’s Best Workplaces™ in Health & Wellness 2022.
In addition, the company was selected as a ‘Standout Case Study’ for the ISG Digital Case Study Awards 2022. The Board of Directors of the company recommended a final dividend of Rs 3.4 per equity share of face value Rs 2/- for the financial year 2022-23 subject to shareholder approval at their meeting on May 8, 2023.
