Adverse macro and rationalisation of tech spending leading to weaker FY24E organic growth guidance; maintain HOLD
Happiest Minds (HM) reported in-line revenue growth of 3.6% QoQ CC (vs I-SEC: 3.5%) and 11.6% YoY CC in Q2FY24 led by healthy growth in product engineering services (5.2% QoQ USD) and digital business solutions (3.7% QoQ USD). Infrastructure management and security solutions’ revenue declined 2.5% QoQ USD and has been flat over the last six quarters.