Happiest Minds Technologies June quarter profit declines by 29%

IT firm Happiest Minds Technologies Ltd has reported a nearly 29 per cent decline in consolidated net profit to Rs 35.73 crore in the June 2021 quarter.

The company, which got listed on BSE and NSE last year, had posted a net profit of Rs 50.18 crore in the year-ago period.

Its revenue, however, grew 41.4 per cent at Rs 331.52 crore in the quarter under review from Rs 234.44 crore in the year-ago period, a regulatory filing said.

"With our positioning in the market as a go to digital partner and the demand environment remaining buoyant, we have been able to record a good performance in this quarter. Our net headcount addition was strong as we onboarded 310 Happiest Minds, which reflects our ability to attract and retain good talent with our compelling people engagement programs, Happiest Minds Technologies Executive Vice Chairman Joseph Anantharaju said.

We have begun the fiscal on a solid footing with good growth and performance. Our operations and delivery remain resilient in the face of supply side pressures and the pandemic situation. Our financials this quarter has an exceptional expense on account of fair valuation of warrant liability in our balance sheet," Happiest Minds Technologies MD and CFO Venkatraman N said.

He added the company's improving profitability means higher effective income-tax.

"Compared to the same quarter previous year wherein we had a significant tax credit by accounting for 'deferred tax asset', this quarter we have a full charge or expenses in line with our profits...I am happy to state that we have been able to settle an earlier reported employee discrimination suit in the US leading to a credit to our P&L of Rs 2 crore," he said.

The company's operating revenues in dollar terms stood at USD 33.2 million, a growth of 41.4 per cent year-on-year.

The company had 180 clients as of June 30, 2021 with 18 additions in the said quarter. The company had 3,538 employees at the end of June 2021 quarter with net addition of 310 in the quarter. Its trailing 12 months attrition was at 14.7 per cent.