Happiest Minds retains FY24 revenue guidance at 25%

IT services company Happiest Minds Technologies retained its FY24 revenue growth guidance at 25% in constant currency on the back of a strong deal pipeline and demand for digital services. Its net profit for the March quarter grew 0.1% sequentially to Rs 57.7 crore on the back of revenues that grew 3.1% QoQ to Rs 386.4 crore.

The operating margin for the March quarter remained flat sequentially at 26%. “I am pleased to announce that Happiest Minds has delivered outstanding results for FY23 with 23.7% revenue growth and 26.2% of EBITDA. 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 Ashok Soota, Executive Chairman, Happiest Minds.

On a trailing twelve-month basis, the voluntary attrition rate reduced to 19.8% from 20.9% in the preceding three months indicating a tough job market.

During the quarter, the company acquired 100% of Sri Mookambika Infosolutions (SMI), a Madurai headquartered, profitable, IT services company through a combination of upfront and deferred equity consideration totaling Rs 111 crores. With over 400 offshore-based employees, SMI has an annual run rate in revenues of about $9 million.

Happiest Minds announced its earnings after markets hours on Monday. Ahead of its earnings, the company’s shares closed down 1.75% at Rs 855.70 on the BSE.