Happiest Minds Tech records PAT of Rs 50 crore in Q3; EBITDA margin at 21.1%

Happiest Minds Technologies has reported 1.2% rise in net profit to Rs 50.10 crore on a 1.8% increase in revenue to Rs 530.81 crore in Q3 FY25 as compared with Q3 FY24.

In dollar terms, revenue for the period under review was $62.7 million, up 0.5% YoY. The revenue grew by 0.8% QoQ in constant currency terms.

EBITDA fell by 1.6% quarter-on-quarter (QoQ) to Rs 116.86 crore in the third quarter. EBITDA margin in Q3 FY25 was 21.1% as against 21.7% in Q3 FY24.

Profit before tax in Q3 FY25 stood at Rs 68.94 crore, up by 1.8% from Rs 67.71 crore in Q3 FY24.

The company recorded free cash flows of Rs 111.80 crore in Q3 FY25.

Total client count stood at 278 as of 31 December 2024, with 7 additions made in the December24 quarter.

Total headcount was at 6,630 Happiest Minds as of 31 December 2024. The trailing 12-month attrition rate was 15.3% in Q3 FY25 as against 14.4% in the previous quarter.

Ashok Soota, executive chairman, said: "Happiest Minds has reported another quarter of strong deal momentum and performance with a revenue growth of 28.2% YoY in constant currency and we are set to report our best performance since IPO in absolute terms.

We launched four transformational initiatives this year which included the acquisitions of Puresoftware and Aureus. The success of the same is evident from our YoY growth. The other three initiatives will accelerate our organic growth in the year ahead. These initiatives are the creation of the GenAI Business Unit, Verticalization into six Industry groups and induction of our Chief Growth Officer.

At our Generative AI Business Services (GBS), we are collaborating with our clients to explore opportunities for leveraging generative AI to enhance business value, efficiency, and productivity. Our goal is to integrate generative AI features into their products, services and provide them with a competitive advantage.

The adoption of this promising technology has picked up speed with our customers embarking into enterprise-wide adoption. Apart from projects already delivered, we have about 15 projects in a proof-of-concept stage which will lead to significant orders/projects in the next fiscal. All our transformational initiatives will also ensure superior performance ahead."

The scrip fell 1.28% to currently trade at Rs 698 on the BSE.

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