Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q4 FY2022 Earnings Presentation
48 slides from Happiest Minds Technologies's earnings presentation, May 5, 2022
Slide 1: Outcome of Board Meeting letter to stock exchanges
Happiest Minds Technologies Limited (formerly known as Happiest Minds Technologies Pvt Ltd) Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bangalore-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investo
Slide 2: Independent Auditor's Report - Consolidated
a Chartered A\ It Deloitte Prestige Trade Tomer tevel 19 H ki & S il 46, Palace Road, High Grounds B luru - 560 001 ASKINS & Sells Karta, ind Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REPORT ON AUDIT OF ANNUAL CONSOLIDATED FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL R
Slide 3: Independent Auditor's Report (continued)
Deloitte Haskins & Sells information required to be disclosed in terms of Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, including the manner in which it is to be disclosed, or that it contains any material misstatement. Basis for Opinion o
Slide 4: Independent Auditor's Report (continued)
Deloitte Haskins & Sells the respective Board of Directors either intends to liquidate their respective entities or to cease operations, or has no realistic alternative but to do so. The respective Board of Directors of the companies included in the Group and of its associates and jointly controlled
Slide 5: Independent Auditor's Report (continued)
Deloitte Haskins (b) & Sells Annual Consolidated Financial Results represent the underlying transactions and events in a manner that achieves fair presentation. e Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent app
Slide 6: Independent Auditor's Report (continued)
Deloitte Haskins & Sells We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable. Other Matters e As stated in Note 2 of the Statement,
Slide 7: Audited Consolidated Financial Results, Q4 and FY22
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement of Audit
Slide 8: Audited Consolidated Statement of Assets and Liabilities
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Audited Consolidated Statement of
Slide 9: Audited Consolidated Statement of Cash Flows
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Audited Consolidated Statement of
Slide 10: Notes to Consolidated Financial Results
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Audited Con
Slide 11: Notes to Consolidated Financial Results (continued)
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Audited Con
Slide 12: Independent Auditor's Report - Standalone
A Chartered A tant: Deloitte Prestige trade tomer level 19 m 46, Palace Road, High Grounds Be luru - 560 001 Haskins & Sells Bengaluru 560 Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR'S REPORT ON AUDIT OF ANNUAL STANDALONE FINANCIAL RESULTS AND REVIEW OF QUARTERLY FINANCIAL RESULT
Slide 13: Basis for Opinion on Standalone Financial Results
Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2022 We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under Section 143(10) of the Companies Act, 2013 (“the Act”). Our responsibilities under those Standards are further d
Slide 14: Independent Auditor's Report (continued)
Deloitte Haskins & Sells includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material i
Slide 15: Independent Auditor's Report (continued)
Results may be influenced. We consider quantitative materiality and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to evaluate the effect of any identified misstatements in the Annual Standalone Financial Results. We communicate wi
Slide 16: Independent Auditor's Report (continued)
Deloitte Haskins & Sells year ended March 31, 2022 respectively and total comprehensive income / (loss) of Rs. (13,390 Lacs) and Rs. 17,844 Lacs for the quarter and year ended March 31, 2022, respectively, and net cash flows of Rs. 979 Lacs for the year ended March 31, 2022 as considered in the Stat
Slide 17: Audited Standalone Financial Results, Q4 and FY22
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement of Audit
Slide 18: Audited Standalone Statement of Assets and Liabilities
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Audited Standalone Statement of A
Slide 19: Audited Standalone Statement of Cash Flows
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Audited Standalone Statement of C
Slide 20: Notes to Standalone Financial Results
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Regd. Office:#53/1-4, Hosur Main Road, Madivala (next to Madivala Police Station) Bangalore 560 068, Karnataka, India Website: www.happiestminds.com , Email: IR@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Audited Sta
Slide 21: Investor Presentation & Fact sheet: Q4 FY22
Investor Presentation & Fact sheet: Q4 FY 22 May 2022
Slide 22: Forward-looking statements
This presentation may contain certain forward-looking statements, which involves risks and uncertainties that could cause our future results to differ materially from those in such forward- looking statements. The COVID-19 pandemic could decrease our customers’ technology spend, delaying prospective
Slide 23: Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company
Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company IPO In September 2020 Digital Agile Active clients RoCE1 Digital 54 Fortune2000 / Forbes200 / • Completed 10 years of Billion $ corporations existence in August 85% of repeat business 2021 RoE •
Slide 24: Technology capabilities and industry verticals
IoT Blockchain DevOps & RPA Cloud Software Defined Networking / NFV BPM & Integration Big Data & Adv. Analytics Security BFSI Edutech Hi-Tech Mfg/Industrial Retail Travel & Hosp. 4 www.happiestminds.com
Slide 25: Our Mission, Vision and Values
Our 2021-31 Vision - Our Values Design for Perpetuity Sharing ESG Excellence Mindful Thought Leadership Integrity Our Mission Profitable Growth Happiest People . Happiest Customers Learning Ambassador for Happiness Excellence World Class Team Social Responsibility 5 www.happiestminds.com
Slide 26: Creating Digital Capital
Business Agile Transformation Organization Business Agile Insights Business CREATING MINDFULLY DIGITAL AGILE CAPITAL Platformize and Agile Modernize Delivery Reimagining Engineering & Customer Experience Operational Excellence 6 www.happiestminds.com
Slide 27: Key project wins
For an EU multinational For a large US fashion retailer, For a Fortune 100 American manufacturing company, Happiest Happiest Minds was chosen as their multinational technology Minds has taken ownership of application security services conglomerate, Happiest Minds was building their Test Automation p
Slide 28: Everest Group PEAK Matrix and NASSCOM recognition
Happiest Minds is recognized as a ‘Major Happiest Minds is featured Contender’ in in NASSCOM’s report on Everest Group PEAK India Cybersecurity Matrix for Digital Industry Services & Engineering Product Growth Story All logos are properties of their respective owners 8 www.happiestminds.com
Slide 29: Workplace rankings and recognition
Happiest Minds is ranked among India’s Top 15 Best Workplaces in Health and Wellness 2021 by Great Ashok Soota is among India’s 100 Great People Place to Work® Institute. Managers 2021 by Great Manager Institute® Received special recognition for supporting employees and their families during COVID-1
Slide 30: Operational and Financial Metrics - Q4 & FY22
A . . De happiest minds = The Mindful IT Company Born Digital . Born Agile Operational and Financial Metrics — Q4 & FY22 WW. YY —_ a | YY 7 " - Ly —YMM mn MMT TTT TT XS
Slide 31: Q4 FY22 results summary
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q4 FY 22 Q3 FY 22 QoQ Q4 FY 21 YoY FY 22 FY 21 YoY Revenues ($'000) 39,876 37,796 5.5% 30,235 31.9% 146,634 104,592 40.2% Revenues 30,057 28,394 5.9% 22,071 36.2% 109,365 77,341 41.4% Other Income 991 834 18.8% 303 226.6% 3,710 2,424 53.0
Slide 32: Digital and Agile % of revenue
Digital Agile % of Revenue % of Revenue 93.9% 93.4% 94.2% 93.4% 93.2% 93.4% 93.4% 96.9% 96.8% 96.5% 96.6% 96.7% 96.8% 96.2% 96.0% 87.9% FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 12 www.happiestminds.com
Slide 33: Revenue and revenue by business unit
Revenue Revenue by BU Total Income (₹ Lakhs) 113,075 3.2% 79,765 21.4% 71,423 46.3% 31,048 27,412 29,228 25,387 22,374 29.1% FY20 FY21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 PES DBS IMSS Oth Inc PES : Product Engineering Services; DBS : Digital Business Solutions; IMSS : Infrastructure Management and S
Slide 34: EBITDA and free cash flow conversion
EBITDA High FCF1 conversion (₹ Lakhs) Margin % (₹ Lakhs) % 98.6% 26.1% 29,477 99.5% 27.0% 99.6% 21,525 29,064 99.4% 26.3% 99.4% 96.2% 15.8% 26.3% 99.3% 21,428 99.5% 25.7% 11,312 26.0% 26.2% 7,688 8,158 6,597 7,034 11,266 5,867 7,462 8,106 5,837 6,551 6,765 FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q
Slide 35: Employees, utilization, attrition and offshore/onsite
Happiest Minds & Utilization 82.6% 82.1% 81.0% 79.5% 80.5% 79.7% 79.4% 76.9% 4,168 3,796 4,021 4,168 3,228 3,228 3,538 2,666 FY20 FY21 FY22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 22.7% 22.7% 21.1% 18.7% 18.5% 14.7% 12.4% 12.4% 95.4% 94.9% 95.9%
Slide 36: Revenue model, geography, vertical and customer concentration
Revenue Model Q4 22 Model Geography Digital Revenue1 Vertical1 7.8% 3.2% 5.4% 6.6% 10.1% 23.6% 16.2% 11.3% 24.5% 6.6% 45.5% 10.4% 11.8% 13.7% 16.7% 65.7% 75.5% 21.7% 13.7% 10.1% Americas Europe India ROW Digital Infra / Cloud SAAS T&M FP Edu Tech Hitech Retail / CPG Security Analytics / AI TME BFSI
Slide 37: Onsite/offshore revenue and average revenue per customer
Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 783 794 796 774 737 751 634 615 77.5% 81.0% 84.0% 83.9% 84.5% 85.0% 85.7% 85.7% 22.5% 19.0% 16.0% 16.1% 15.5% 15.0% 14.3% 14.3% FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4 22 FY 20 FY 21 FY 22 Q4 21 Q1 22 Q2 22 Q3 22 Q4
Slide 38: Revenue by customer industry group and service offering
FY20 FY21 FY 22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Customer Industry group Edutech 21.3% 25.6% 23.2% 24.1% 23.4% 23.2% 22.6% 23.6% Hitech 21.0% 18.2% 15.8% 13.5% 14.2% 13.5% 18.3% 16.7% BFSI 17.5% 16.4% 13.2% 14.8% 13.4% 13.3% 12.5% 13.7% Travel, Media and Entertainment (TME) 17.1% 13.6% 13.2% 14.0%
Slide 39: Revenue by geography, customer size and contracting model
FY20 FY 21 FY 22 FY21 Q4 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 Revenue by Customer Geo USA 77.5% 73.4% 66.4% 68.4% 67.8% 65.9% 66.6% 65.7% India 11.9% 11.8% 14.1% 11.7% 12.4% 13.0% 14.6% 16.2% Europe 7.2% 10.4% 10.4% 11.6% 10.4% 11.1% 9.8% 10.4% ROW 3.4% 4.4% 9.0% 8.4% 9.4% 10.0% 9.0% 7.8% 1 Million $ Cus
Slide 40: Headcount, utilization, DSO, EPS and return ratios
FY20 FY21 FY22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Happiest Minds Onsite 123 166 172 166 180 182 183 172 Offshore 2,543 3,062 3,996 3,062 3,358 3,614 3,838 3,996 Total 2,666 3,228 4,168 3,228 3,538 3,796 4,021 4,168 Happiest Minds % Onsite 4.6% 5.1% 4.1% 5.1% 5.1% 4.8% 4.6% 4.1% Offshore 95.4% 94.9%
Slide 41: Revenue by business unit
(All figures in ₹ Lakhs) FY20 FY21 FY22 FY21Q4 FY22Q1 FY22Q2 FY22Q3 FY22Q4 Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 24,168 21.4% 4,487 20.1% 5,251 20.7% 5,747 21.0% 6,322 21.6% 6,848 22.1% DBS 19,167 26.8% 21,288 26.7% 32,891 29.1% 6,995 31.3% 7,570 29.8% 8,046 29.4% 8,511 29.1% 8,762 28.2% PES
Slide 42: Summary Profit & Loss statement
Summary Profit & Loss statement (All figures in ₹ Lak hs) FY 20 FY 21 FY 22 FY 21 Q4 FY 22 Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 Income Operating revenue 69,821 77,341 109,365 22,071 24,461 26,453 28,394 30,057 Other income 1,602 2,424 3,710 303 926 959 834 991 Tota l income 71,423 79,765 113,075 22,374 25,
Slide 43: Condensed Balance Sheet
Condensed Balance Sheet (All figures in ₹ Lak hs ) 31.03.2020 31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.03.2022 Assets Non-current Assets Property, plant and equipment 93 69 83 86 77 78 Goodwill 610 7,644 7,756 7,742 7,772 7,896 Financial & Other assets 5,598 10,029 18,033 11,604 20,609 11,788
Slide 44: Investor contact
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Slide 45: Press release: Q4FY22 results
PRESS RELEASE Happiest Minds records industry leading Q4FY22 sequential revenue growth of 6.2%; full year FY22 growth at 41.8% EBITDA for FY22 grows 36.9% to ₹295 crores, generating free cash flows of ₹291 Crores. Proposes final dividend of ₹2.00 per share Bengaluru, India, San Jose, California and
Slide 46: Press release: financial table and chairman comment
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q4 FY 22 Q3 FY 22 QoQ Q4 FY 21 YoY FY 22 FY 21 YoY Revenues ($'000) 39,876 37,796 5.5% 30,235 31.9% 146,634 104,592 40.2% Revenues 30,057 28,394 5.9% 22,071 36.2% 109,367 77,341 41.4% Other Income 991 834 18.8% 303 226.6% 3,710 2,424 53.0
Slide 47: Key project wins and analyst mentions
Key Project Wins: • For an EU multinational manufacturing company, Happiest Minds has taken ownership of building their Test Automation Framework & DevOps projects • For a large US fashion retailer, Happiest Minds was chosen as their application security services partner • For a Fortune 100 American
Slide 48: About Happiest Minds Technologies
About Happiest Minds Technologies: Happiest Minds Technologies Limited (NSE: HAPPSTMNDS), a Mindful IT Company, enables digital transformation for enterprises and technology providers by delivering seamless customer experiences, business efficiency and actionable insights. We do this by leveraging a
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