Happiest Minds Technologies posted a 29.5 per cent year-on-year increase in revenue, reaching ₹531 crore for the quarter ending in December 2024. The growth was fueled by strong deal momentum and strategic acquisitions, although profit after tax saw a 16 per cent decline mainly due to acquisition-related charges.
The company’s utilization rate improved to 78 per cent from 76.3 per cent, with an aim to reach 80-81 per cent for optimal business operations, according to Joseph Anantharaju, Executive Vice-Chairman.
Happiest Minds Technologies focused on verticalization strategy based on existing capabilities and opportunities in various sectors. The company secured significant wins this quarter, including partnerships with a global tech major for core banking technology and a US logistics tech firm for Gen AI-powered dashboards.
EBITDA increased by 11.1 per cent year-on-year to ₹11,686 lakhs, representing 21.1 per cent of total income, with operating revenues in US dollars at $62.7 million, a 27 per cent year-on-year growth.
Ashok Soota, Executive Chairman, highlighted the collaboration with clients to leverage generative AI to enhance business value and productivity. There are currently 15 generative AI projects in proof-of-concept stage across various sectors.
Anantharaju emphasized the varying technology adoption patterns in the banking sector, with US banks leading in generative AI investments, Indian private sector banks making progress in digitizing experiences, and public sector banks in early stages of digital transformation.
Venkatraman Narayanan, MD & CFO, explained the decline in profit after tax was mainly due to acquisition-related non-cash charges, while emphasizing the 12.6 per cent growth in cash earnings per share year-over-year.
Happiest Minds Technologies remains focused on its six industry verticals, with expectations of growth from the Gen AI Business Unit and industry verticalization in upcoming quarters.
The company’s shares closed at ₹701, a 1.06 per cent decrease on the NSE today.
Published on February 5, 2025.
