IT stock Happiest Minds records 25% revenue growth in Q4, PAT rises 10%, Board declares dividend

Mid-cap IT business Happiest Minds Technologies reported a market worth of ₹12,567.11 Cr during today's closing session. With a 23.7% increase in revenue and a 26.2% EBITDA, the firm produced outstanding results for FY23.

The Board of Directors have “Recommended a final dividend of Rs.3.40/- per equity share of Rs.2/- each for the financial year ended March 31, 2023, subject to the approval of the members at the ensuing 12th Annual General Meeting of the Company (AGM),” said Happiest Minds Technologies in a stock exchange filing today.

During the quarter ended March 2023, the company recorded revenue from operations of Rs 377.98 Cr up by 25.80% YoY from ₹300.57 Cr recorded during the quarter ended March 2022. The company’s EBITDA stood at ₹100.62 Cr in Q4FY23 up by 23.3% YoY from ₹81.58 Cr in Q4FY22. Happiest Minds Technologies reported a net profit of ₹57.66 Cr during the quarter under review up by 10.7% YoY from ₹52.11 Cr recorded during the year-ago quarter.

During FY23 the company reported revenue from operations of Rs 1429.29 Cr up by 30.7% YoY from ₹1093.65 Cr in FY22. The company recorded an EBITDA of ₹379.97 Cr up by 28.9% YoY from ₹294.77 Cr in FY22. Happiest Minds Technologies said its net profit stood at Rs 230.99 Cr in FY23 up by 27.5% YoY from ₹181.2 Cr in FY22.

Ashok Soota, Executive Chairman, said “I am pleased to announce that Happiest Minds has delivered outstanding results for FY23 with 23.7% revenue growth and 26.2% of EBITDA. We have missed our revenue growth target by 1.3% due to the right-shifting of some Q4 revenues. This has been more than compensated by delivering an EBITDA which exceeded the upper band of our guidance of 22 to 24%. In view of our strong business pipeline, we are planning a record people addition of 1,300. Accordingly, we are retaining our FY24 revenue guidance growth at 25%.”

Venkatraman N, MD & CFO, said “Our excellent results both in terms of growth and profitability reflect our operating strengths. This is the 12th successive quarter where we have reported EBITDA of more than 25%. Based on our strong financial results we are happy to recommend a final dividend of ₹3.4 per share.” 

Joseph Anantharaju, Executive Vice Chairman, said “Our compelling value proposition and effective land and expand strategy has led to good performance on our customer metrics. The average revenue per customer and the number of billion-dollar corporations have shown consistent progression during the fiscal. We saw a marked improvement in pipeline and deal velocity in the second half of the quarter setting us up well for the first quarter and FY24.”

The shares of Happiest Minds Technologies closed on the NSE at ₹847.95 apiece level, down by 2.70% from the previous close of ₹871.45.