Happiest Minds shares fall 2% after Q1 PAT declines 12.5% to ₹51.03 crore

The firm clarified that the decline in profits was primarily due to non-recurring expense in the current quarter compared to a large exception write-back in the previous period. The quarter also witnessed increased amortisation and financing costs arising from recent acquisitions, it said.

Operating revenue rose 18.7% YoY to ₹463.83 crore during the quarter while total revenue increased 20.9% YoY to ₹489.26 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 13.3% YoY to ₹116.71 crore while EBITDA margin declined to 23.9% from 25.5% in the same period last year.

In constant currency terms, revenue grew 17.8% YoY to $55.55 million during the quarter.

Ashok Soota, Executive Chairman at Happiest Minds said the firm has begun the new fiscal with its best performance since its initial public offering (IPO). “Establishment of Gen AI business services, BU reorganization with industry groups into profit centers, and two excellent acquisitions have set us on a path of accelerated growth, which will be further manifested in successive quarters,” he said.

The firm reported 279 clients as of June 30, 2024 with 41 new client additions during the quarter. Happiest Minds said it is enhancing the sales process for the world’s leading beverage maker through a generative AI-enabled chat bot for actionable intelligence and decision making. For a US-based provider of sustainable solutions, Happiest Minds is enhancing their data platform and visualisation.

Happiest Minds said it has signed a definitive agreement to acquire 100% equity interest in digital engineering and transformation company, PureSoftware Technologies for a total purchase consideration of ₹779 crore. Happiest Minds has also acquired USA-based Azure native digital product engineering company, Aureus Tech Systems LLC.

Shares of Happiest Minds have lost over 16% since the beginning of the year. The stock has lost over 15% in the last one year.