Happiest Minds Technologies Q2 and HY 2024-25 Performance: Key Highlights and Growth

The financial and operational performance of Happiest Minds Technologies Limited for Q2 and the first half (HY) of FY 2024-25 is outlined in the company’s communication to shareholders. The period ended on September 30, 2024, showcases solid growth, with key financial and business metrics demonstrating progress.

Key Financial Metrics:

• Revenue Growth:

  • Q2 FY25 (Quarter ended September 30, 2024):
    • Revenue in constant currency grew by 12.7% q-o-q and 28.2% y-o-y.
    • Operating revenues in US dollars reached $62.4 million, reflecting a 12.3% q-o-q and 27.0% y-o-y increase.

• Profitability:

  • Q2 FY25:
    • EBITDA reached ₹11,882 lakhs, 21.7% of Total Income, with 1.8% q-o-q and 13.4% y-o-y growth.
    • Profit After Tax (PAT) stood at ₹4,951 lakhs, 9% of Total Income, but declined by 3.0% q-o-q and 15.3% y-o-y due to acquisition-related non-cash charges and financing costs.

• Cash Flow and EPS:

  • Free cash flow generation was strong at ₹11,612 lakhs for Q2 FY25 .
  • Diluted EPS was ₹3.29 for Q2 FY25.

Business Highlights:

• Client Base Expansion:

  • The total client base reached 281, with 11 new clients added during the quarter.
  • The company now works with 82 billion-dollar corporations, up from 57 in the same period last year.
  • Six clients now contribute $3-5 million in revenue, an increase from two in the previous year.

• Employee Metrics:

  • Happiest Minds had 6,580 employees as of September 30, 2024.
  • The trailing 12-month attrition rate was 14.4%, a slight rise from the previous quarter’s 13.5%.
  • Utilization stood at 76.3%, down from 78.2% in the last quarter.

• Key Wins and Strategic Focus:

  • The company secured new contracts in sectors such as energy tech, semiconductors, health tech, and digital twin platforms.
  • Happiest Minds received industry recognition for its culture, organizational development, and technological capabilities, including digital engineering and enterprise software.
  • Strategic initiatives include driving synergies from recent acquisitions (Pure Software and Aureus) and building a Generative AI Business Services (GBS) division.

 Despite some profitability challenges due to acquisition-related costs, Happiest Minds Technologies Limited continues to demonstrate strong revenue growth, client expansion, and cash flow generation. The company’s strategic focus on innovation, acquisitions, and expanding its Generative AI services positions it for long-term success.