Profit before exceptional item tax rose 1.8% to Rs 81.58 crore in Q3 FY23 as compared to Rs 80.11 crore in Q2 FY23. Exceptional items stood at Rs 6.34 crore in Q3 FY23.

The EBITDA rose 3.1% QoQ and 26.5% YoY to Rs 97.26 crore in Q3 FY23. EBITDA margin stood at 26.03% in Q3 FY23 from 26.3% in Q2 FY23.

Revenue in constant currency grew by 2.8% q-o-q and 22.6% y-o-y. In dollar terms, the company's operating revenue stood at $45.3 million during the quarter, rising 2.1% QoQ and 19.8% YoY. Free cash flows during Q3 FY23 stood at Rs 93.15 crore.

The company had 4,611 employees at the end of the reporting quarter, with a net addition of 30 people in Q3 FY23. The trailing 12-months attrition was at 20.9%. The utilization rate in Q3 FY23 stood at 80.1% as against 80.6% during the last quarter.

Happiest Minds added 9 new clients in the quarter ended 31 December 2022 taking the tally to 230 total clients.

Ashok Soota, Executive Chairman, “We have delivered yet another quarter of excellent performance on all fronts. On revenue growth + EBITDA, a metric that we closely track, we are at 55.2%.”

Venkatraman N, managing director & CFO, said, “Happiest Minds' year-to-date revenue growth of 26% in constant currency and EBITDA of 26.3% continue to be industry-leading and well above the guidance we have given for the year.”

Joseph Anantharaju, executive vice chairman, said “Our clients are investing heavily in cloud, experience and analytics as part of their strategic Digital initiatives. They continue to see us as a strategic and differentiated partner, given our positioning as a ‘Born Digital . Born Agile' company and our technology depth. This has resulted in a strong pipeline of large deals, many of them with Fortune 500 companies.”

Happiest Minds is a next-generation digital transformation, infrastructure, security and product engineering services company.

The scrip was down 1.58% to Rs 867 on the BSE.