Mid-tier IT services firm Happiest Minds Technologies reported a 11 per cent year-on-year (YoY) rise in net profit at ₹57.6 crore for the quarter ended March 31, 2023. On a sequential basis, the profits remained flat. 

The company’s operating revenues stood at ₹378 crore, up 3 per cent quarter-on-quarter (QoQ) and 26 per cent YoY. The company has missed its revenue growth target by 1.3 per cent. However, for FY24, it has retained its revenue growth guidance at 25 per cent.

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Ashok Soota, Executive Chairman, said, “We have missed our revenue growth target by 1.3 per cent due to the right-shifting of some Q4 revenues. This has been more than compensated by delivering an EBITDA which exceeded the upper band of our guidance. In view of our strong business pipeline, we are planning a record people addition of 1,300.” 

Its EBITDA (earnings before interest, taxes, depreciation, and amortization) for the quarter was ₹100.62 crore, 26 per cent of total income. This is growth of 0.1 per cent QoQ and 10.7 per cent YoY.

Headcount

The company had a headcount of 4,917 employees at the end of the quarter, with net 306 additions in the last quarter. The 12-month trailing attrition rate further moderated to 19.8 per cent from 20.9 per cent last quarter. The number of clients totalled 237, with 16 additions in the fourth quarter.

Joseph Anantharaju, Executive Vice-Chairman, said: “Our compelling value proposition and effective land and expand strategy has led to good performance on our customer metrics. The average revenue per customer and the number of billion-dollar corporations have shown consistent progression during the fiscal. We saw a marked improvement in pipeline and deal velocity in the second half of the quarter setting us up well for the first quarter and FY24.”

Additionally, the Board of Directors has recommended a final dividend of ₹3.4 per equity share of face value ₹2 for 2022-23 subject to shareholders’ approval.

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