Mid-tier IT firm, Happiest Minds Technologies plans to continue investing in new-age technologies in both organic and inorganic modes as it plans to tap into the opportunities in the market in the coming quarters.
The company is actively looking to invest in Web 3.0 Metaverse, low code, no code, and security, making in-house investments in talent to come up with use cases, and is also looking at acquiring bigger companies, to achieve growth and traction in these newer verticals.
Organic perspective
Ram Mohan, President and CEO, Infrastructure Management & Security Services (IMSS), said, “From an organic perspective, we continue to invest in new technologies in terms of creating specialists, consultants, and architects to get a foothold. We are also looking at creating use cases so that we will be able to take advantage when there is an opportunity out in the field.”
“In terms of acquisitions, we have got a solid pipeline and we are continuously focused on it. We have upped our ante on the size of companies as we are now looking at companies sized 25 million to 30 million,” said Venkatraman Narayanan, Managing Director and CFO.
Quarterly result
Recently, at the Q1 results, the firm raised its revenue guidance for FY23 to 25 per cent and has targeted at a compounded annual growth of 25 per cent over the next 5 years. In order to achieve the target, the firm has done away with the organic and inorganic split.
“Growing at a 25 per cent rate will mean looking at revenue growth through inorganic means. Hence, we have merged our organic and inorganic channels. However, there isn’t any acquisition in the pipeline currently and the growth for the next two quarters will come from organic channels,” Narayanan said.
Happiest minds reported sequential revenue growth of 6.9 per cent in constant currency terms for Q1. Further, the operating revenues for the quarter stood at $42.2 million, growth of 5.9 per cent quarter-on-quarter and 27.4 per cent year-on-year.