Happiest Minds eyes 20% organic growth from digital business
HAPPIEST MINDS POSTED A 580% YEAR-ON-YEAR INCREASE IN NET PROFIT TO ₹36 CRORE FOR THE MARCH QUARTER OF FY21
BENGALURU: Ashok Soota-led Happiest Minds Technologies Ltd is eyeing a 20% organic growth in the medium to long term driven by acceleration in demand for digital services, which accounts for nearly 97% of the firm’s total revenues, the highest among its Indian peers.
Happiest Minds classifies ‘digital’ as service offerings including five emerging technologies, cloud, software-as-aservice, security, analytics/artificial intelligence, and internet of things.
“As we begin 2021-22, we will look to achieve 20% organic growth as indicated at the time of our initial public offering,” said Soota, the executive chairman of the company.
The demand environment has accelerated with the vaccination drive in the US and Europe, an increasing adoption of remote ways of working, and paucity of talent in the US, which leads to outsourcing to niche players, said Joseph Anantharaju, executive vice chairman, Happiest Minds.
The Bengaluru-based IT services firm posted a 580% yearon-year (y-o-y) increase in net profit to ₹36 crore for the March quarter of 2020-21. The closely-watched dollar revenue for the March quarter grew 18% y-o-y and 15.4% sequentially to $30.2 million.
The revenues for 2020-21 grew 6.3% annually to $104.6 million on the back of broadbased growth across sectors.
“Our fiscal year revenue growth of 6.3% in dollar terms is reflective of our business model which positions us as a go-to player for customers building a digital ready enterprise. Revenues for the quarter grew sequentially by 15.4%. This includes Pimcore Global Services (PGS), the company we acquired earlier during the quarter,” said Venkatraman N, managing director and chief financial officer, Happiest Minds.
The IT services firm acquired Us-based PGS for $8.25 million, or about ₹60 crore, to create greater “digital capital” for customers and facilitate onboarding of more strategic customers. PGS’S clientele includes customers across retail, consumer packaged goods, and manufacturing verticals.
Happiest Minds added 23 clients during the quarter, taking the total number of clients to 173 as of March 31, out of which 87% is repeat business.