Robust annual EBITDA of Rs462 Cr at 21.4% margin, reflecting consistent operating profitability
FinTech BizNews Service
Mumbai, May 12, 2025: Happiest Minds Technologies Limited (NSE:HAPPSTMNDS), a ‘Born Digital. Born Agile’, a digital transformation and IT solutions company, today announced its consolidated results for the Fourth quarter ended March 31, 2025, as approved by its Board of Directors.
Ashok Soota, Chairman & Chief Mentor, said, “Happiest Minds continues to show above-industry-leading growth this fiscal year. The ten strategic transformational changes that we rolled out are shaping Happiest Minds' future. Our strategic initiatives, along with the continued commitment of our teams, have us well-positioned for strong double-digit organic growth in FY26 and beyond. Economists are projecting a slowdown in some of our largest markets; I want to emphasize that we have healthy pipelines of demand and do not see any recession-driven slowdown.”
Joseph Anantharaju, Co-Chairman & CEO, said, “The transformative initiatives we have launched over the last year are beginning to yield results and are laying a robust foundation for future growth. Our move to a vertical structure has resulted in accelerated growth in several verticals like Healthcare and BFSI. We continue to see an increase in the share of the Healthcare vertical, which saw large new deals totalling $20 Mn from 4 customers and these are likely to be repeated next year. The two transformations that we initiated around GenAI BU and the independent NN hunting team have seen a good buildup in the pipeline that should result in revenue growth. Our other initiatives around High Potential accounts, GCC and Private Equity pursuit are beginning to take hold and should start yielding results in the ensuing quarters.”
Venkatraman Narayanan, MD & CFO, said, “I am extremely happy to report on an annual growth of 26% in constant currency with an EBITDA of 21.4%, the latter, well in line with our guidance. Adjusted for a one-time bad debt and continued investments in Gen AI and Sales teams, Operating margin and EBIDTA continue to be industry leading and comparable to the previous year. PAT and EPS adjusted for acquisition related costs and exceptional item, a reliable measure of performance, continues to remain steady”
Key Financial highlights
Quarter ended March 31, 2025
· Revenue in constant currency grew 1.1% q-o-q and 27.9% y-o-y
· Operating Revenues in US$ stood at $63 million, growing 0.3% q-o-q and 25.6% y-o-y
· Total Income of Rs57,052 Lakhs grew 3.0 % q-o-q and 28.9% y-o-y
· EBITDA of Rs10,984 Lakhs, stood at 19.3% of Total Income. Decline of 6.0% q-o-q on account of an unfortunate bad debt of rs1,204 Lakhs while growing 1.5% y-o-y
· PAT of Rs3,401 Lakhs 6.0% of Total Income.
· Adjusted PAT and EPS (adjusted only for non-cash charges and exceptional items), a more reliable profitability measures stand at:
· Adjusted PAT of Rs5,668 Lakhs at 9.9% of Total Income (decline of 4.5% and 13.0% y-o-y⁴)
· Adjusted EPS at Rs 3.76
Year ended March 31, 2025
· Revenue in constant currency grew 25.6%
· Operating Revenues at US$ $243.6 million grew 24.2%
· Total Income of Rs216,222 Lakhs grew 26.4%
· EBITDA of Rs46,224 Lakhs, at 21.4% of Total income, Absolute growing of Rs 4,102 Lakh
· PAT of Rs18,466 Lakhs at 8.5% of Total Income.
· Adjusted PAT and EPS (adjusted for non-cash charges and exceptional items), a more reliable profitability measure stands at:
· Adjusted PAT of Rs 24,638 Lakhs 11.4% of Total Income
· Adjusted EPS at Rs 16.37
Clients:
· 281 as of March 31, 2025
· 14 additions in the quarter
Our People - Happiest Minds:
· 6,632 Happiest Minds as of March 31, 2025
· Trailing 12-month attrition of 16.6% (15.3% in the previous quarter)
· Utilization of 77.4%, from 78% in last quarter
Key wins:
· For a US based not-for-profit organization in media and publication, Happiest Minds has been chosen as a strategic partner to build their customer master data management using Pimcore® platform.
· For an American Insurance broker, Happiest Mind is leveraging MS Power Platform to build their Client Data Portal
· For a global market research agency, Happiest Minds is leveraging Generative AI to develop their End User Chat platform
· For a US manufacturer of intelligent fluid-flow equipment, Happiest Minds was chosen to build their next-generation connected products
· For a Middle Eastern E-Commerce company, Happiest Minds is providing cybersecurity assessment & implementation services
· For a Middle Eastern bank, Happiest Minds is providing Risk and Governance Consulting Services
· The Board of Directors of the Company at their meeting held on May 12, 2025 has recommended a final dividend of Rs3.5 per equity share of face value Rs 2/- for the financial year 2024-25 subject to shareholder approval.
