Happiest Minds Technologies hits lowest level since listing post Q2 results

The company's profit after tax (PAT) declined 32 per cent at Rs 34 crore sequentially

Shares of Happiest Minds Technologies (HMT) tumbled 12.2 per cent in intra-day trading to Rs 285.55 on the BSE on Thursday after the company reported flat revenue growth sequentially at Rs 188 crore in the September quarter (Q2FY21). In dollar terms, revenue growth was 5.4 per cent over the previous quarter.

Ebitda (earnings before interest, taxes, depreciation, and amortisation) margins improved 71 basis points sequentially at 26.3 per cent from 25.6 per cent in June quarter (Q1FY21). Profit after tax (PAT) declined 32 per cent at Rs 34.08 crore against Rs 50.18 crore in Q1FY21. On year-on-year, PAT jumped 27.8 per cent from Rs 26.67 crore in Q2FY20.

On PAT, the company said, in the immediately preceding quarter instead of a provision for Income-tax it had a one-time credit for deferred taxes and from the current quarter we have reverted to normal provisions.

The stock of the information technology (IT) & software firm touched its lowest level since its listing on September 17, 2020 -- of Rs 288.55 -- before recouping some of the loss in the latter part of the day. The stock closed at Rs 330.35, down 5.59 per cent from its previous close. With today’s fall, the stock was down 16 per cent from its high of Rs 395 touched on listing day. The company had raised Rs 702 through initial public offering (IPO) by issuing shares at Rs 166 per share. The IPO had received strong response from all catergories of investors.

HMT is a digital IT and product engineering service provider that positions itself as “Born Digital. Born Agile”. The company focuses on delivering a seamless and end-to-end digital experience to customers. Its key service offerings include digital business, product engineering services, infrastructure management services and security.