Happiest Minds Tech Q4 profit jumps 25%, revenues up 10%

Mid-sized IT solutions provider Happiest Minds Technologies posted a 24.8% year-on-year (YoY) rise in net profit at Rs 71.98 crore for the fourth quarter ending March 2024 from Rs 57.66 crore in the year-ago period.

Sequentially, net profit increased 20.7% from Rs 59.62 crore in the preceding quarter.

Revenue from operations grew 10.4% to Rs 417.29 crore, from Rs 378 crore in Q4 FY23 and 1.8% growth quarter-on-quarter (QoQ) from Rs 409.88 crore in the December quarter.

“The newly created Gen AI business unit, creation of six new Industry Groups and successful closure of two acquisitions has put us back on course towards accomplishing our long-term vision of $1 billion in revenues by FY31,” said Ashok Soota, executive chairman of Happiest Minds Technologies.

For the full year, the Bengaluru-headquartered firm’s profit rose 7.5% to Rs 248.39 crore from Rs 230.99 crore in FY23. Revenues increased 13.7% to Rs 1,624.66 crore from Rs 1,429.29 crore last year.

In dollar terms, revenues grew to $50 million 9.1% YoY in Q4FY24 from $45.91 million a year ago. In constant currency terms, revenue growth was 9.5% YoY and 1.4% sequentially.

FY24 revenue grew 11% in constant currency terms.

Operating margins for FY24 dipped to 21.2% from 23.3% last year. For Q4, margins increased to 21.1% from 20.8% in previous quarter and 22.7% in Q4FY23.

“We are estimating a growth of between 35-40% in revenues, while margins we would like to keep in the range of 20-22%, said Venkatraman Narayanan, MD and chief financial officer at Happiest Minds Technologies.

With the transformational changes in the past quarters, he said the company will be back on track to achieve the vision of $1 billion dollars by 2031.

Happiest Minds Technologies’ board proposed final dividend of Rs 3.25 per share; total dividend for the year of Rs 5.75 per share.

On Tuesday, shares of Happiest Mind Technologies opened higher and were trading marginally higher at Rs 808 apiece on the BSE. The results were announced late evening after market hours on Monday.

In April, Happiest Minds also acquired Noida-based PureSoftware Technologies for $94.5 million (Rs 779 crore), focusing on enhancing domain capabilities in BFSI and healthcare verticals, and expanding global presence in the USA, UK, India, Mexico, Singapore, and Malaysia. In the same month, it had also acquired Macmillan Learning India for Rs 4.5 crore.