Revenue from operations grew by 4.03% quarter on quarter (QoQ) to Rs 406.62 crore in Q2 FY24.

On a year on year basis, the company's net profit declined 1.6% while revenue increased by 14.4% in Q2 FY24 over Q2 FY23.

Profit before tax was at Rs 79.12 crore in the quarter ended 30 September 2023 (up 0.56% QoQ and down 1.2% YoY).

EBITDA increased by 1.8% QoQ and 11.1% YoY to Rs 104.82 crore in the second quarter of FY24. EBITDA margin reduced to 24.4% in Q2 FY24 as against 25.5% in Q1 FY24 and 26.3% in Q2 FY23.

In dollar terms, the company's operating revenue stood at $49.12 million during the quarter, rising 3.3% QoQ and 10.8% YoY. In constant currency, the firm reported a rise of 3.6% QoQ and 11.6% increase on YoY basis. Free cash flows during Q2 FY24 stood at Rs 102.96 crore.

The company had 5,285 employees at the end of the reporting quarter, with a net addition of 237 people in Q2 FY24. The trailing 12-months attrition was at 14.4%. The utilization rate in Q2 FY24 stood at 75.6%.

Happiest Minds added 7 new clients in the quarter ended 30 September 2023 taking the tally to 244 total clients.

Meanwhile, the company's board declared an interim dividend of Rs 2.50 per equity share for FY24. The record date for the same is 23 October 2023 and the dividend will be made on or after 13 November 2023.

Further, the board has approved the establishment of its latest business unit, Generative AI Business Services (GBS) which will offer full-scale Generative AI offerings across multiple domains. The firm has also approved the formation of the product and digital engineering services (PDES) business unit by combining the product engineering services (PES) and digital business services (DBS) business units.

Ashok Soota, executive chairman, said “We had given revenue growth guidance for the year of 25% without making a distinction between organic and inorganic growth. Based on an assessment of market trends we are revising our revenue growth guidance for the year to 12% on an organic basis. Additional growth, if any, due to acquisition will be over and above this guidance. We retain our EBITDA guidance of 22% to 24% and remain committed to our long-term growth aspiration of becoming a billion-dollar enterprise by 2031.”

He further added, “We are starting with immediate effect a Generative AI business unit (GBS) to capitalize on the transformative impact of Generative AI. The existing PES and DBS businesses will get combined into the PDES business unit. There will be no change in IMSS. We will therefore retain 3 BUs: PDES, IMSS and GBS.”

Venkatraman N, MD & CFO, commented, “Our total Income for the quarter and half year have crossed $50M and $100M respectively, while delivering higher than EBITDA guidance for the fourteenth quarter in a row. Pertinent to note is that our results incorporate above industry-average pay increases, payment of variable pay, and strong net people additions, all areas where we have seen divergence in approach taken by other industry participants.”

Happiest Minds Technologies, an IT solutions company, enables digital transformation for enterprises and technology providers by delivering seamless customer experiences, business efficiency and actionable insights.

The scrip slipped 2.57% to currently trade at Rs 838.80 on the BSE.