Happiest Minds Technologies, a Bengaluru-based digital solutions provider, forecasts robust growth in the second half of the year, stemmed from its recent investments in generative AI.
Managing director and CFO Venkatraman Narayanan expressed confidence in the upcoming quarters, citing an uptick in business volume and a robust pipeline.
The company is expanding into Africa and Asia-Pacific markets through its acquisition of PureSoftware and Aureus. Aureus provides Azure native digital product engineering services in insurance, reinsurance, healthcare, and lifesciences.
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In Q2 FY25, Happiest Minds reported a 12.7% quarter-on-quarter (q-o-q) revenue increase to Rs 521 crore, while profit after tax fell 3% to Rs 49.5 crore. The company aims for 30-35% revenue growth in FY25.
Ashok Soota, executive chairman, said, “Happiest Minds has delivered our best growth results since the last two years, with 12.7% q-o-q growth and 28.2% y-o-y growth. The transformational changes we initiated this year are all gathering momentum. These changes include the acquisition of PureSoftware and Aureus, the creation of our GenAI Business Unit (GBS), hiring a senior leader to expand net new (NN sales), and creating six Industry Groups, each headed by an industry manager. The full impact of all these changes on revenue and growth will become visible in the quarters ahead.”
Further, in the post earnings press conference, the leadership addressed the US political landscape’s potential impact on business, particularly tax policies.
“The tax cuts that were offered under Trump, which were four years ago, will continue… the certainty is that current tax rates will continue and will get renewed in 2025, which is again, providing stability,” Soota said.
However, he expressed caution about corporate tax cuts decreasing from 22% to 15%, saying, “I’m still wary of the corporate tax cuts coming down from 22% to 15%. I think that’s too much of a drastic drop. But at least, the certainty is that current tax rates will continue and will get renewed in 2025, which is again, providing stability.”
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