Mid-tier IT firm Happiest Minds Technologies, with the introduction of a new business unit for Generative AI dubbed GBS, will invest in building proofs of concept, upskilling employees forging hyperscaler partnerships and collaborating with open source platforms, said company executives.
The company believes Generative AI will help them penetrate into new accounts and even expand the service ambit for existing customers. It is also in conversation to sign deals in the domain, given high customer interest. Joseph Anantharaju, Executive Vice Chairman, said, “Customers across verticals are interested in how GenAI could help optimise costs or get new streams of revenue. Based on customer conversations and seeing the transformative effect it could have, we decided it warranted the importance of being a separate business unit.”
Happiest Minds is currently building POCs to validate assumptions first and then progress to implementation. It is also closely working with Microsoft to be a part of their AI partner council and is looking to replicate the same with other players. It will also be engaging with open-source large language models(LLM) that are fast progressing.
Guidance cut and acquisition delay
In Q2, the company recorded a 1.6 per cent y-o-y decline in net profit at ₹58.46 crore, and the revenue from operations stood at ₹406.62 crore, up 14.4 per cent y-o-y. Amidst macro-economic headwinds, Happiest Minds has reduced the guidance to 12 per cent on an organic basis. Previously it has guided 25 per cent revenue growth for the year, without making a distinction between organic and inorganic growth.
Venkatraman N, MD & CFO noted that the distinction of guidance for organic business was 15-20 per cent and now has been reduced, given the market conditions. The remaining 5 per cent was for inorganic business. Albeit, the company has not been able to close any acquisitions in the last quarter and continues to remain focused on both streams of business going forward.