Happiest Minds Q3 FY24: Net profit rises 3.5%, revenue up 11.7% YoY

Happiest Minds Technologies, a digital transformation and IT solutions company, has released its consolidated results for the third quarter, revealing a 3.5% year-on-year (YoY) increase in net profit to ₹59.62 crore for October-December. The quarter also saw an 11.7% rise in revenue, totaling ₹409.88 crore. 

The company reported a constant currency revenue growth of 0.8% quarter-on-quarter (QoQ) and 9.4% YoY. Total income for the quarter reached ₹434.17 crore, showing a 1.2% QoQ and 15.9% YoY growth.  

EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at ₹105.19 crore, constituting 24.2% of total income, with a 0.4% QoQ and 8.2% YoY increase. The Profit After Tax (PAT) recorded ₹59.62 crore, growing by 2% QoQ and 3.6% YoY. 

Ashok Soota, Executive Chairman, said “Our results reflect the resilience of our business model which has continued to deliver industry-leading revenue growth in a generally difficult quarter for the industry.  We have strengthened our sales engine by creating a focused Gen-AI Business unit. Effective April 2024, we will be creating five Industry Groups, operating as independent profit centers and led by specialized industry managers. We expect these changes to add significantly towards our FY25 growth.” 

As of December 31, 2023, the company's headcount was 5,246, down from 5,285 in the last quarter. Attrition was recorded at 14.1%, a decrease from 14.4% in the previous quarter, while utilisation grew to 76.7%, up from 75.6% in the last quarter. 

Happiest Minds acquired 10 new clients, bringing the total to 245 by the end of the quarter. Additionally, Ashok Soota was re-appointed as the whole-time director, designated as Executive Chairman, for a five-year term.