Happiest Minds Technologies drops 2% after Q3 net profit declines 17% YoY

Shares of the company opened lower and slid further 1.94% to hit a low of ₹695 per piece on the NSE in early deals. The stock was trading 1.45% lower at ₹698.2 apiece at 9.30 am.

Happiest Minds Technologies, on Tuesday, reported a net profit of ₹47.24 crore for the December quarter of FY25 compared to ₹57.6 crore in the year-ago quarter, reflecting a fall of around 17%.

However, the company's total income rose 27% to ₹553.77 crore in the December quarter against ₹434.17 crore in the same quarter of the preceding fiscal. The company posted a total income of ₹548.67 crore for the September quarter.

The company reported a hike in expenses to ₹484.83 crore for the third quarter of FY25 from ₹354.51 crore in the year-ago quarter due to a spike in employee benefit expenses and depreciation.

Its EBITDA increased 11.1% year-on-year to ₹116.86 crore in Q3FY25. However, it was down 1.6% compared to the September quarter of FY25.

Ashok Soota, Executive Chairman of the company said, “We launched four transformational initiatives this year which included the acquisitions of Puresoftware and Aureus. The success of the same is evident from our YoY growth. The other three initiatives will accelerate our organic growth in the year ahead.”

These initiatives are the creation of the GenAI Business Unit, Verticalisation into six Industry groups and induction of Chief Growth Officer, Soota added.

Utilisation of funds raised via QIP

The company in a filing stated that the Audit Committee at its meeting held on February 4, 2025, has found no deviation or variation in the utilisation of funds raised via QIP.

“We confirm that there has been no deviation in the utilization of proceeds of QIP as mentioned in the objects stated in the Placement Document dated July 14, 2023,” the filing stated.

The company raised ₹500 crore through a QIP issue in July 2023.