Q1 2025 Happiest Minds Technologies Ltd Earnings Call Transcript
Key Points
- Happiest Minds Technologies Ltd (BOM:543227) reported a revenue growth of 10.9% QoQ and 16.8% YoY, with total income reaching INR489 crores, a 20.6% increase from the previous year.
- The company has successfully integrated two significant acquisitions, PureSoftware and Aureus, which are expected to propel growth and expand market presence in APAC, Africa, and the reinsurance space.
- The Generative AI Business unit has shown promising results with reported revenues of USD855,000 in the first quarter, and over 75% of the workforce is already trained in GenAI tools.
- Happiest Minds Technologies Ltd (BOM:543227) has maintained a strong EBITDA margin of 23.9%, demonstrating operational efficiency despite the costs associated with recent acquisitions.
- The company has improved its DSO from 87 to 84 days and maintains a solid cash position of INR1,560 crores, indicating strong cash flow management and liquidity.
- The company experienced a drop in PBT and PAT due to significant noncash charges related to the amortization of intangibles and unwinding interest costs on deferred payments from acquisitions.
- There was a one-time acquisition-related cash charge of INR6.4 crores, which impacted the financial results for the quarter.
- The integration of PureSoftware and Aureus has only contributed 40 and 38 days of revenue respectively, indicating that the full financial benefits of these acquisitions are yet to be realized.
- The company's attrition rate, although improved, still stands at 13.5%, which could impact long-term talent retention and operational stability.
- The forecasted revenue growth for FY25 has been adjusted from 35%-40% to 30%-35% due to the delayed integration of acquisitions, indicating potential challenges in achieving initial growth targets.
Ladies and gentlemen, good day, and welcome to Happiest Minds Technologies Limited earnings conference call. (Operator Instructions) Please note this conference is being recorded.
I now hand the conference over to Mr. Smit Shah from Adfactors PR, Investor Relations. Thank you, and over to you, sir.
Thank you, Steve. Good morning, ladies and gentlemen. Thank you for joining us today on the Q1 FY25 earnings con call of Happiest Minds Technologies Limited. Today, we have with us Mr. Ashok Soota, Executive Chairman; Mr. Joseph Anantharaju, CEO, Product and Digital Engineering Services; Mr. Venkatraman Narayanan, Managing Director and Chief Financial Officer; Mr. Rajiv Shah, Executive Director and Member of Executive Board; Mr. Ram Mohan, President and CEO, Infrastructure Management and Security Services; Mr. Aurobinda Nanda, President and COO, Product and Digital Engineering Services; Mr. Sridhar Mantha, President and CEO, Generative AI Business Services; Mr. Sunil Gujjar, Head of Investor Relations.
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