Happiest Minds Q3 net profit surges 97%, revenue up 14.6%

Bengaluru headquartered information technology (IT) services firm Happiest Minds Technologies has reported a 97.1% year-on-year increase in its net profit for the third quarter ended December 31, 2020. 

The company on Thursday announced that its consolidated net profit touched Rs 42.15 crore for Q3 FY21, up from Rs 21.38 crore for the same period a year ago. Sequentially, its profits increased 23.7%.

As for revenue, Happiest Minds reported a YoY increase of 14.6% to Rs 201.29 crore in Q3 FY21 from Rs 175.5 crore. In Q2 FY21, its total revenue stood at Rs 187.9 crore.

“We are indeed happy to deliver another successful quarter showing good growth in revenue and profits… Our profits after tax have grown YoY by 97.1% and QoQ by 23.7%,” Venkatraman Narayanan, managing director and CFO of the firm, said. “We continue to maintain and improve on key capital return ratios, which are key to increasing our shareholder and stakeholder value.”

The growth comes on the back of strong demand across all three business units of the company -- Digital Business Services (DBS), Infrastructure Management and Security Services (IMSS), and Product Engineering Services (PES).

For IMSS, the Q3 revenue stood at Rs 43.34 crore, up 11.1% YoY from Rs 38.9 crore, while DBS and PES rose 14.7% and 11.85% to Rs 49.85 crore and Rs 99.65 crore, respectively, for the same period. Other income contributing to the total revenue rose 107.6% YoY to Rs 8.45 crore.

“We have a strong deal pipeline on the back of increasing market demand and are thankful to all our customers for the trust they have reposed in us. Our people are our key strength and they continue to play a critical role in our growth and ensuring customer delight,” Joseph Anantharaju, executive vice chairman and CEO of PES at Happiest Minds, said.

Read more: Happiest Minds shares end debut trade at 125% surge from IPO price

During the quarter, Happiest Minds added six new clients, including a US Fortune 500 engineering giant, taking the total number of customers to 155 as of December 31, 2020. The company’s employee base grew to 2,885, trailing 12 months attrition of 13.1%.