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Happiest Minds Technologies Limited Reports Q2 FY 21 results post a successful IPO. Revenue grows 5.4% sequentially in dollar terms, EBITDA margin expands to 26.3%

Bengaluru, NFAPost: Happiest Minds Technologies Limited, a ‘Born Digital. Born Agile’, digital transformation and IT solutions company, Q2 profit grew 27.8% to reach Rs 34.08 Crore compared with Rs 48. 78 crore during the same period in the previous quarter.

But the company’s profit declined quarter-on-quarter by 32% to Rs 34.08 crore for the quarter ended September 2020. It is interesting to note that the 2nd quarter result happens after the comapany’s recently concluded success in IPO in the BSE.

The company’s revenues stood at Rs 187.91 crore in Q2 FY21, up 0.5%, sequentially. The revenue grew from Rs 180.68 crore with a Y-o-Y basis registering a growth of 3.4%.

Venkatraman Narayanan, Executive Director & CFO, said in a statement, “Despite the environment we have shown growth in revenues on a sequential basis.”

“On PAT (profit after tax), in the immediately preceding quarter instead of a provision for Income-tax we had a one-time credit for deferred taxes and from the current quarter we have reverted to normal provisions,” he added.

Ashok Soota, Executive Chairman, said in the statement, “We are happy to report a good all-round performance this quarter and this is a testimony of our digital focus, agility and commitment to all our stakeholders.”

results

announced its consolidated results today for the second quarter ended September 30, 2020 as approved by its Board of Directors.

Particulars	Q2 FY 21	Q1 FY 21	QoQ	Q2 FY 20	YoY
Revenue ($'000)	24,712	23,444	5.4%	24,889	(0.7)%
Revenue (₹ lakhs)	18,791	18,699	0.5%	18,068	3.4%
EBITDA (₹ lakhs)	4,939	4,782	3.3%	3,353	47.3%
EBITDA %	26.3%	25.6%	71 bps	18.3%	730 bps
PAT (₹ lakhs)	3,408	5,018	(32.1)%	2,667	27.8%
PAT %	18.1%	26.8%	(870) bps	14.6%	350 bps

H1 FY 21	H1 FY 20	YoY
48,156	48,650	(1.0)%
37,490	34,845	7.6%
9,721	5,938	63.7%
25.9%	17.0%	890 bps
8,426	4,503	87.1%
22.5%	12.9%	960 bps

Commenting on the company’s performance, Happiest Minds Executive Chairman Ashok Soota said the company would like to express its gratitude for a very successful IPO and extend a warm welcome to all new shareholders.

“We specially want to express gratitude to our customers for their ongoing support and record level of appreciations received during these Covid times. We are happy to report a good all-round performance this quarter and this is a testimony of our digital focus, agility and commitment to all our stakeholders,” said Happiest Minds Executive Chairman Ashok Soota.

Happiest Minds Executive Director and CFO Venkatraman Narayanan said the company is happy to present its 1st results after going public.

“In our business we continue to build depth and capabilities in the digital services space results of which are visible. Despite the environment we have shown growth in revenues on a sequential basis and bettered our EBITDA both sequentially and on a year over year basis,” said Happiest Minds Executive Director and CFO Venkatraman Narayanan.

On PAT, Happiest Minds Executive Director and CFO Venkatraman Narayanan said in the immediately preceding quarter instead of a provision for Income-tax the company had a one-time credit for deferred taxes and from the current quarter has reverted to normal provisions.”

Key financial highlights:

Quarter ended September 30, 2020

·         Operating Revenues stood at $24.7 million (growth of 5.4% q-o-q)

·         Total Income stood at ₹ 18,791 lakhs (growth of 0.5% q-o-q / growth of 3.4% y-o-y)

·         EBITDA stood at ₹ 4,939 lakhs, 26.3% of Total Income (growth of 3.3 % q-o-q / growth of 47.3% y-o-y)

·         PAT at ₹ 3,408 lakh (growth of 27.8% y-o-y)

·         RoCE & RoE (annualized) for the half year stood at 36.3% & 36.3% respectively

Other highlights:

Clients:

·         152 as of September 30, 2020

·     8 new added during the quarter Our People; Happiest Minds:

·         2,721 Happiest Minds as of September 30, 2020 (net addition during the quarter of 63);

·         Trailing 12 months attrition at 14.1%

·     Utilization of 78.7%, up from 74.9% in Q1 FY21. Key Wins:

·         For a Fortune 100 technology company that delivers industry specific solutions that include technologies for buildings and industry, Happiest Minds has been selected as a preferred partner for their platform development and support activities;

·         For a large Community bank based in USA, Happiest Minds has been chosen to provide managed infrastructure and security services for a period of 3 years;

·         For a global professional services provider from Europe, Happiest Minds has signed up a multi-year contract to develop an AI infused automation IT Helpdesk ChatBot priced on a per-user basis providing a predictability of cost and ROI to the customer;

·         For a large credit information provider in Europe, Happiest Minds has been chosen to digitize their fraud detection and prevention applications;

·         For a large multinational conglomerate in Asia, Happiest Minds is chosen to develop drone based surveillance system using computer vision algorithms and leveraging deep learning to derive intelligent insights on customer, employee behavior and building safety.

Awards:

·         Happiest Minds has been ranked among the Top 50 Great Place To Work’s (GPTW) Best Workplaces for Women for the second consecutive year

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