Happiest Minds Tech rises on decent Q1 performance

Happiest Minds Technologies rose 3.09% to Rs 999.35 after the company's net profit rose 8.1% to Rs 56.34 crore while net sales gained 9.4% to Rs 328.92 crore in Q1 FY23 over Q4 FY22.

Profit before tax stood at Rs 75.58 crore in Q1 June 2022, up by 8.2% from Rs 69.88 crore in Q4 FY22.

The EBITDA rose 7.6% QoQ and 32.7% YoY to Rs 87.75 crore in Q1 FY23. EBITDA margin stood at 26.4% in Q1 FY23 from 26.3% in Q4 FY22 and 26.1% in Q1 FY22.

In dollar terms, the company's operating revenue stood at $42.2 million during the quarter, rising 5.9% QoQ and 27.4% YoY. Free cash flows during Q1 FY23 was at Rs 86.39 crore.

The company had 4,188 employees at the end of the reporting quarter, with a net addition of 20 people in Q1 FY23. The trailing 12-months attrition was at 24.4%. The utilization rate in Q1 FY23 stood at 79.1% as against 79.4% during the last quarter. Happiest Minds added 5 new clients in the quarter ended 30 June 2022 taking the tally to 211 total clients.

Ashok Soota, the executive chairman of Happiest Minds Technologies, said, We have started fiscal FY23 showing industry leading performance. Our 10-year vision statement is to be a billion-dollar company by 2031. In line with this goal, based on the growth we are experiencing and continued demand for digital services, we are increasing our revenue guidance for FY23 to 25% while targeting to grow at a CAGR of 25% over the next 5 years.

Venkatraman N, the managing director (MD) and chief financial officer (CFO) of Happiest Minds Technologies, said, I am very happy with our performance for the quarter. While we make changes to our revenue guidance reflecting our confidence on our ability to perform, we continue to hold onto our EBITDA margin guidance of 22% to 24%.

Joseph Anantharaju, executive vice chairman of Happiest Minds Technologies, said, Our performance continues to lead the industry with results that demonstrate the strategic relevance of our services and our trusted customer and ecosystem partnerships. The results were broad-based over delivery across all markets, services, and industries. The demand for our services remains strong as enterprises continue to tread the path of a multi-year technology upgrade cycle through cloud adoption & migration, data engineering, analytics, and intelligent automation.

Happiest Minds Technologies, an IT solutions company, enables digital transformation for enterprises and technology providers by delivering seamless customer experiences, business efficiency and actionable insights.

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