Happiest Minds Technologies reported a nearly 29% downswing in its consolidated net profit at Rs 35.73 crore for the June 2021 quarter. The IT firm’s revenue, on the other hand, surged by over 41% y-o-y to Rs 253.87 crore on account of high demand for digital services as the world moves to a post-pandemic era.
The company had 180 clients as of June 30, 2021, with 18 additions made in Q1 FY22. Employee count stood at 3,538 employees at the end of the June 2021 quarter while its trailing 12 months attrition was at 14.7%.
The Happiest Minds Technologies announced a final dividend of Rs 3 per share.
The stock closed in the red at Rs 1,388.40 taking a 2.67% hit ahead of its Q1 FY22 results on July 28.
- Total revenue increased to Rs 253.87 crore from Rs 223.74 crore in the previous quarter, and from Rs 186.99 crore in the same quarter previous year.
- The company reported EBITDA margin for Q1 FY22 at Rs 66.15 crore with a 12.4 % q-o-q growth
- Other income grew by nearly 75% to Rs 9.26 crore over the previous quarter
- Operating Revenues in US dollar terms soared to $33.2 million with a 41.4% y-o-y growth
- The Company acquired 100% voting interest in Happiest Minds Inc. for a total recorded consideration of $13.31 million comprising cash consideration of $ 8.25 million.
- Happiest Minds settled an earlier reported employee discrimination suit in the U.S leading to a credit to the company’s P&L of Rs 2 crore.
- The company added 18 new clients in the June 2021 quarter, bringing the total to 180 clients.
- Consolidate net profit declined 29% y-o-y to Rs 35.73 crore in Q1 FY22.
- The company’s total expenses in the June 2021 quarter stood at Rs 196.59 crore compared to Rs 174.50 reported in the March 2021 quarter.
- The IT firm’s total tax expenditure climbed 6.1% to Rs 15.46 crore.
- Basic earnings per share (EPS) declined to Rs 2.51 from Rs 2.55 in the previous quarter and Rs 3.73 in the year-ago period.
- Total liabilities climbed to Rs 417.71 crore from Rs 375.96 crore q-o-q.
Product Engineering Services (PES): Revenue grew to Rs 116.41 crore from RS 105.89 crore q-o-q.
Digital Business Solutions (DBS): Revenue increases to Rs 75.69 crore from Rs 69.95 crore.
Infrastructure Management & Security Services (IMSS): Revenue rises to Rs 52.51 crore from Rs 44.87 crore.
Happiest Minds Technologies MD & CFO Venkatraman N said that the company began the year on a strong footing with good growth and performance. He termed the exceptional expense on account of fair valuation of warrant liability as to the drag on numbers in the balance sheet.
The company added 310 employees in the June 2021 quarter of this financial year bringing the total number of employees in the company to 3,538 (as of June 30, 2021).
Member of the Executive Board, Ram Mohan says that the company attributes its performance to a high demand in enterprises wanting to rapidly scale up their digital infrastructure through their Core Transformation, Everything-on-Cloud and Cloud Migration initiatives.
Happiest Minds picked by an MNC to accelerate their Digital roadmap.
Working with a Fortune 500 company to consult on the API strategy.
A U.S-based telecom supplier chose Happiest Minds as a partner for their Cloud Security programs.
A leading U.S-based electric vehicles company chose the IT firm to build a real-time scalable Edge Analytics Solution for Asset Monitoring and Monetization. m
What This Means For The Investor
Happiest Minds Technology recently won the coveted Golden Peacock Business Excellence Award 2021 that recognizes best management practices and has also been ranked 63rd on the Best Workplaces in AsiaTM 2021 list by Great Place to Work®. All these may indicate management efforts to add value. However, valuations may need a review ahead with the stock trading at a P/E of 121 as of 28 July. Speak to your financial advisor before investing in stocks.