Happiest Minds Technologies Limited (NSE:HAPPSTMNDS), a ‘Born Digital. Born Agile’, digital transformation and IT solutions company, today announced its consolidated results for the third quarter ended December 31, 2022 as approved by its Board of Directors.

Financial highlights

Quarter ended December 31, 2022

• Revenue in constant currency grew by 2.8% q-o-q and 22.6% y-o-y
• Operating Revenues in US$ stood at $45.3 million (growth of 2.1 % q-o-q: 19.8% y-o-y)
• Total Income of ₹ 37,468 lakhs (growth of 4.3% q-o-q; 28.2% y-o-y)
• EBITDA of ₹ 9,726 lakhs, 26.0% of Total Income (growth of 3.1% q-o-q; 26.5% y-o-y)
• PAT of ₹ 5,758 lakhs (decline of 3.1% q-o-q; growth of 17.7% y-o-y)
• Free cash flows of ₹ 9,315 lakhs
• EPS (diluted) for the quarter of ₹ 3.98

Nine months ended December 31, 2022

• Revenue in constant currency grew by 26.0%
• Operating Revenues in US$ stood at $131.9 million (growth of 23.5% y-o-y)
• Total Income of ₹ 106,397 lakhs (growth of 29.7% y-o-y)
• EBITDA of ₹ 27,935 lakhs, 26.3% of Total Income (growth of 31.4% y-o-y)
• PAT of ₹ 17,333 lakhs (growth of 34.3% y-o-y)
• Free cash flows of ₹ 26,534 lakhs
• EPS (diluted) for half year of ₹ 12.01

Ashok Soota, Executive Chairman, said “We have delivered yet another quarter of excellent performance on all fronts. On revenue growth + EBITDA, a metric that we closely track, we are at 55.2%, which reflects our ability to drive consistent profitable growth. We are delighted with the recognitions received by Happiest Minds on corporate governance. The ICSI award in this quarter was preceded by the Golden Peacock award for corporate governance in the previous quarter. Happiest Minds stands for excellent corporate governance and these awards represent a dual confirmation on our disclosure, transparency and governance practices.“

Venkatraman N, MD & CFO, said “Happiest Minds’ year-to-date revenue growth of 26% in constant currency and EBITDA of 26.3% continue to be industry-leading and well above the guidance we have given for the year. Accolades that we received for our governance and disclosure practices coupled with our results make the quarter results that much more pleasant”

Joseph Anantharaju, Executive Vice Chairman, said “Our clients are investing heavily in cloud, experience and analytics as part of their strategic Digital initiatives. They continue to see us as a strategic and differentiated partner, given our positioning as a ‘Born Digital . Born Agile’ company and our technology depth. This has resulted in a strong pipeline of large deals, many of them with Fortune 500 companies.”

Clients:

• 230 as of December 31, 2022
• 9 additions in the quarter

Our People – Happiest Minds:

• 4,611 Happiest Minds as of December 31, 2022 (net addition for the quarter 30)
• Trailing 12 months attrition of 20.9%
• Utilization of 80.1%, from 80.6% in last quarter

Q3 FY23 Key Project Wins:

• For one of the largest bottlers of beverage brands in America, Happiest Minds was chosen to establish Microsoft Power Platform COE for them.
• For a US-based workforce development company, Happiest Minds was selected to build their next-generation mentorship platform.
• For a global leader in the design and manufacturing of advanced analytical, test and measurement instrumentation, Happiest Minds was selected as a partner for front-end development and automation.
• For a leading US labor and employment law firm, Happiest Minds is helping them automate their processes with Microsoft Power Platform
• For a large consulting company in the US, Happiest Minds is providing managed database services
• For a Danish bank, Happiest Minds is digitally transforming their trading platform using Low-Code No-Code (LCNC) platform.
• For a major telecom operator in the Middle East, Happiest Minds is providing Security Assessment services.
• For a multi-national BPO and consultancy company headquartered in Europe, Happiest Minds is providing cloud, security and network management services.

Recognitions and CSR:

• Happiest Minds has won GOLD for its 2022 Integrated Annual Report at the League of American Communication Professionals (LACP) Spotlight Awards 2022
• Happiest Minds is recognized among ‘India’s Top 25 Best Workplaces™ in IT & IT-BPM 2022’ by Great Place To Work® Institute
• Happiest Minds has won CULT.fit ‘India’s Fittest Disruptors 2022 Award’
• Happiest Minds wins multiple awards at the ICSI National Awards 2022
• ‘Best Governed Company’ in Medium Category
• CS Praveen Kumar Darshankar presented the ‘Governance Professional of the Year’
• Ashok Soota conferred ‘ICSI Lifetime Achievement Award for Excellence in Corporate Governance’
• Priya Kanduri conferred ‘Outstanding Leadership Award’ at Internet 2.0 Conference, Dubai
• Sushilkumar Nahar recognized as a ‘Game Changer’ at the CIO100 Awards 2022 

Analyst Mentions

• Happiest Minds is a ‘Leader in Enterprise Software’ – Zinnov Zones
• Happiest Minds is a ‘Leader in Software Platform Engineering’ – Zinnov Zones
• Happiest Minds is a ‘Leader among SMSPs for ER&D Services’ – Zinnov Zones
• Happiest Minds is a ‘Leader among SMSPs in Data & AI Engineering’ – Zinnov Zones
• Happiest Minds is a ‘Major Contender in Everest Managed Detection & Response (MDR) Services PEAK Matrix’  – Everest