Happiest Minds Technologies Ltd. reported a 3.1% sequential decline in profit at Rs 57.6 crore, but it met revenue expectations. Profit fell primarily as a result of an exceptional loss related to the fair valuation of Happiest Minds Inc., which was acquired in January 2021. However, it was bolstered by other higher-income individuals.
It reported year-to-date revenue growth in constant currency of 26% and Ebitda growth of 26.3%, both of which exceeded guidance. “On a sequential basis, I would have preferred to see higher revenue growth in the third quarter. However, one-time factors impacted the December quarter Venkatraman Narayanan, Happiest Minds Technologies’ managing director, and chief financial officer.
Narayanan said the company had been able to meet revenue guidance and beat margins from a nine-month perspective. It is reasonably confident of meeting the margin guidance of the financial year 2022-23 after taking current market conditions into consideration.
Anantharaju added that historically, the third quarter is slow and deals that did not close in December would fructify in January. Existing businesses are contributing 90–92% in terms of revenues on a quarterly basis and that trend is expected to continue. Account mining and expansion are of key focus for the company. Narayanan added that 22-24% is the sustainable margin range for the current file