IT Consulting & Software company Happiest Minds Technologies announced Q4FY25 & FY25 results Q4FY25 Financial Highlights: Revenue in constant currency grew 1.1% QoQ and 27.9% YoY. Operating Revenues in US stood at USD 63 million, growing 0.3% QoQ and 25.6% YoY. Total Income of Rs 57,052 lakh grew 3.0 % QoQ and 28.9% YoY. EBITDA of Rs 10,984 lakh, stood at 19.3% of Total Income. Decline of 6.0% QoQ on account of an unfortunate bad debt of Rs 1,204 lakh while growing 1.5% YoY. PAT of Rs 3,401 lakh 6.0% of Total Income. Adjusted PAT and EPS (adjusted only for non-cash charges and exceptional items), a more reliable profitability measures stand at: Adjusted PAT of Rs 5,668 lakh at 9.9% of Total Income (decline of 4.5% and 13.0% YoY). Adjusted EPS at Rs 3.76. FY25 Financial Highlights: Revenue in constant currency grew 25.6%. Operating Revenues at US at USD 243.6 million grew 24.2%. Total Income of Rs 216,222 lakh grew 26.4%. EBITDA of Rs 46,224 lakh, at 21.4% of Total income, Absolute growing of Rs 4,102 lakh. PAT of Rs18,466 lakh at 8.5% of Total Income. Adjusted PAT and EPS (adjusted for non-cash charges and exceptional items), a more reliable profitability measure stands at: Adjusted PAT of Rs 24,638 lakh 11.4% of Total Income. Adjusted EPS at Rs 16.37. Ashok Soota, Chairman & Chief Mentor, said: “Happiest Minds continues to show above-industry-leading growth this fiscal year. The ten strategic transformational changes that we rolled out are shaping Happiest Minds' future. Our strategic initiatives, along with the continued commitment of our teams, have us wellpositioned for strong double-digit organic growth in FY26 and beyond. Economists are projecting a slowdown in some of our largest markets; I want to emphasize that we have healthy pipelines of demand and do not see any recession-driven slowdown.” Joseph Anantharaju, Co-Chairman & CEO, said: “The transformative initiatives we have launched over the last year are beginning to yield results and are laying a robust foundation for future growth. Our move to a vertical structure has resulted in accelerated growth in several verticals like Healthcare and BFSI. We continue to see an increase in the share of the Healthcare vertical, which saw large new deals totalling USD 20 million from 4 customers and these are likely to be repeated next year. The two transformations that we initiated around GenAI BU and the independent NN hunting team have seen a good buildup in the pipeline that should result in revenue growth. Our other initiatives around High Potential accounts, GCC and Private Equity pursuit are beginning to take hold and should start yielding results in the ensuing quarters.” Venkatraman Narayanan, MD & CFO, said: “I am extremely happy to report on an annual growth of 26% in constant currency with an EBITDA of 21.4%, the latter, well in line with our guidance. Adjusted for a one-time bad debt and continued investments in Gen AI and Sales teams, Operating margin and EBIDTA continue to be industry leading and comparable to the previous year. PAT and EPS adjusted for acquisition related costs and exceptional item, a reliable measure of performance, continues to remain steady" Result PDF
Conference Call with Happiest Minds Technologies Management and Analysts on Q4FY25 & Full Year Performance and Outlook. Listen to the full earnings transcript.