InvestorQ : How did you see the quarterly numbers of Happiest Minds for the September 2022 quarter?
swati Bakhda made post

How did you see the quarterly numbers of Happiest Minds for the September 2022 quarter?

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Sam Eswaran answered.
1 month ago
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For the quarter ended September 2022, Happiest Minds Ltd reported 34.4% growth in sales at Rs355.51 crore on a consolidated basis. Happiest Minds, promoted by Ashok Soota of Mindtree and Wipro fame, is a pure digital company and had completed its successful IPO in the second half of 2020. For the quarter, digital revenues constitute 96% of total revenues. Sales have grown at CAGR of 25.8% over last 3 years. The product mix is dominated by Product engineering or PES which constitutes 47% of revenues while digital business solutions or DBS accounted for 29.7%. The other key segment was Infrastructure management and security or IMS accounting for 21.9% of revenues. Here is a gist.

Happiest Minds

Rs in Crore

Sep-22

Sep-21

YOY

Jun-22

QOQ

Total Income (Rs cr)

₹ 355.51

₹ 264.53

34.39%

₹ 328.92

8.08%

Net Profit (Rs cr)

₹ 59.41

₹ 44.44

33.69%

₹ 56.34

5.45%

Diluted EPS (Rs)

₹ 4.09

₹ 3.06

₹ 3.88

Net Margins

16.71%

16.80%

17.13%

Let me now turn to the profitability of Happiest Minds. The net profits were up 33.69% at Rs59.41 crore while growing 5.5% sequentially. The biggest growth in the operating profits came from the IMSS vertical at 86.2% yoy, while the DBS vertical grew by 38.2%. The largest vertical of product engineering (PES) grew by 43.8% on a yoy basis. PAT margins stood at 16.71% for the Sep-22 quarter compared to 16.80% in the Sep-21 quarter but lower than 17.13% in June 2022 quarter. Attrition has been a major challenge for all the IT companies in the last few quarters and Happiest Minds was no exception. The company saw attrition of 23.5% on a 12 months trailing basis in the September 2022 quarter.

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