Happiest Minds Technologies is witnessing improved demand for IT services and a renewals in deals, particularly as optimism grows following the conclusion of elections in the United States and is also hopeful of hitting or coming close to at least 30% revenue growth for 2024-25 (FY25).
Joseph Anantharaju, Executive Vice Chairman, stated: “In most of the cases, if not all of the cases, we have had the renewals go through. So, I would say that the demand environment is much better than what it was last year, same time.”
For the third quarter (Q3), the company’s net sales came in at Rs 530.8 crore, up 1.8% sequentially. Meanwhile, the net profit rose 1.2% to Rs 50.1 crore in the quarter ended December.
Anantharaju said that the December quarter being a seasonally challenging period due to fewer working days and employee leave, typically reduces growth by 3-4%.
Despite these challenges, Anantharaju conveyed a positive outlook for the future. The company remains optimistic about sustaining its year-over-year growth rate of 27-28% and expects further upside from recent acquisition in Middle East. And remains confident in maintaining its Ebitda margin within the guided range of 20-22%, having already reached 22.1%.
Happiest Minds recently completed the acquisition of GAVS Technologies in the Middle East. The company expects the acquisition to contribute positively to its revenue growth and strengthen its presence in a region experiencing a rise in IT and digital services demand.
Anantharaju noted that geopolitical stability in West Asia has also contributed to an improved business environment. “If you look at the situation in West Asia, it’s much better than it was a year ago.”
Further, he said that the company has undertaken several transformational initiatives, including business verticalisation, a focus on Generative AI, restructuring its sales engine, and acquisitions to expand geographically and enhance capabilities.
“So, if you look at it, verticalisation is almost done. The Chief Growth Officer and his team is almost in place. GenAI, we are continuing to make investments. It’s a startup within the overall Happiest Minds system and the fourth is acquisitions. We did about three acquisitions in the first quarter and now we have done one consolidation exercise earlier this month,” Anantharaju said.
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