Happiest Minds Technologies Reports Mixed Q1 FY25 Performance

Happiest Minds Technologies reported a 12.5% decline in consolidated net profit for Q1 FY25 at Rs 51.03 crore, despite a revenue increase of 18.7% compared to the same period last year. The decline was attributed to non-recurring expenses and increased costs from acquisitions. The company also expanded through strategic acquisitions and added 41 new clients.

IT company Happiest Minds Technologies has reported a 12.5 per cent decline in consolidated net profit at Rs 51.03 crore for the June quarter of FY25.

It posted a net profit of Rs 58.33 crore for the comparable period last year. Revenue from operations, however, rose by 18.7 per cent, reaching Rs 463.82 crore, up from Rs 390.87 crore in Q1 FY24.

While revenue saw an increase, net profit fell by 29.10 per cent month-on-month. MD and CFO Venkatraman Narayanan attributed the profit decline to non-recurring expenses, an exceptional write-back in the previous quarter, and increased amortization and financing costs from acquisitions.

During the quarter, Happiest Minds inked definitive agreements to acquire 100 per cent equity share capital of PureSoftware Technologies for Rs 779 crore and a 100 per cent stake in US-based Aureus Tech Systems LLC through its American subsidiary for USD 8.5 million (around Rs 71 crore). With these acquisitions, the firm's client base grew by 41, bringing the total to 279 as of June 30, 2024.

Executive Chairman Ashok Soota hailed the Q1 results as the company’s ''best performance'' since its IPO. ''The establishment of Gen AI business services, BU reorganization into industry groups and two robust acquisitions have set us on a path of accelerated growth,'' he said. The headcount for Happiest Minds stood at 6,599 as of June 30, 2024. Shares of the company were trading 2.28 per cent lower at Rs 755 apiece on the BSE.