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Happiest Minds revealed their quarterly numbers late on Wednesday night (27 Oct 2021). The company’s revenues climbed to Rs 264.5 crores registering a 44.7% year on year (YoY) growth. With an 89.5% growth, other incomes stood at Rs 9.59 crores. 

Operating revenues, i.e, revenue from primary business activities in terms of US dollars grew 44.9% (YoY) and at the close of the quarter stood at $35.8 million. 

Profit after tax (PAT) for the quarter totalled Rs 44.44 crores surging 30.4% (YoY).

The company in its filing with NSE reported free cash flows of Rs 67.43 crores; having such handsome free cash in its balance sheet is a big achievement especially for a company that was listed only a year ago. 

Marching along with the growing total income, EBITDA margins also posted a 42.5% y-o-y rise and stood at Rs 70.12 crores. 

Happiest Minds added 8 more clients to its client base taking the overall tally to 186. Out of these clients, 65.9% are based in the US while 13% are Indian clients. This quarter the company added 3 more clients to the above $ 5 million categories. The company has set aside Rs 3.41 crores for Provisions & Deferred tax liability in the quarter. The company announced an interim dividend of Rs 1.75 per equity share of face value Rs 2 per share. 

Hits

  • The company added 258 new faces in its workforce taking the tally to 3,796 as of September 30, 2021.
  • The Bangalore headquartered company added 8 new clients, of which its deal with a leading supply chain industry leader for SaaS-based products was the biggest win. 
  • Great Place to Work® acknowledged the company in its list of India’s Top 50 Best Workplaces for Women 2021 for the third straight year. 
  • Operating Revenues in US$ terms grew 8.0% q-o-q and 44.9% sequentially. 
  • Total Income also grew 8.0% q-o-q; 45.9% when compared to 30 September last year. 
  • Diluted EPS for the quarter came out to be Rs 3.06 growing 26.4% y-o-y. 

Misses

  • Even though the company added 258 people to its workplace, its utilization rate came down to 79.7%, as against 82.1% in the last quarter. 
  • The company currently observes an attrition rate of 18.5%.
  • Customers from the US have seen a marginal decline as the share of customers from the UD fell from 67.8% to 65.9%.

Management commentary

The company’s MD & CFO, Venkatraman N, briefly commented on the quarterly numbers. He said “ the company is maintaining healthy free cash flows, and according to him the company posted an all-around performance throughout the quarter. He also added that the company has added 568 new faces to its workforce in the last 6 months. He was pleased to announce Rs 1.75/ equity share as an interim dividend guided by healthy capital return ratios. 

Joseph Anantharaju, Executive Vice Chairman, Happiest Minds Technologies said the company, inspired by its strong demand-oriented environment, was able to capitalize on most of its existing clients while winning new logos as well. 

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