Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q1 FY2025 Earnings Presentation
43 slides from Happiest Minds Technologies's earnings presentation, Aug 12, 2024
Slide 1: Outcome of the Board Meeting held on August 12, 2024
Happiest Minds Technologies Limited Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bengaluru-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investors@happiestminds.com August 12, 2024 Listing Compliance
Slide 2: Independent Auditor's Review Report on Consolidated Results
Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru – 560 001 Karnataka, India Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM UNAUDITED CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Happiest
Slide 3: Auditor's Review Report (Page 2 of 2)
xi. PureSoftware Technologies Romania SRL (Romania) wholly owned subsidiary of PureSoftware Technologies Private Limited xii. Pure Conference Private Limited wholly owned subsidiary of PureSoftware Technologies Private Limited xiii. PureSoftware Private Limited (Nepal) wholly owned subsidiary of Pur
Slide 4: Statement of Unaudited 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 (Rs, in lakhs) Statement of Unaud
Slide 5: Additional Disclosures under Regulation 52(4)
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 , Emath iR@happlestminds.com , Tel: +91 80 6196 0300 Additional disclosures as per Regu
Slide 6: 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: +31 80 6196 0300 Notes to Statement of Unaudited C
Slide 7: Notes to Consolidated Financial Results (continued)
Happiest Minds Technologies Limited CIN : L72900KA2011PLC057931 Read. 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 Unaudited C
Slide 8: Independent Auditor's Review Report on Standalone Results
Chartered Accountants Prestige Trade Tower, Level 19 46, Palace Road, High Grounds Bengaluru – 560 001 Karnataka, India Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM UNAUDITED STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF Happiest Mi
Slide 9: Auditor's Review Report Standalone (Page 2 of 2)
5. We did not review the interim financial results of the ESOP Trust included in the unaudited standalone financial results, whose interim financial results reflect total revenue of Rs. Nil for the quarter ended June 30, 2024, net profit after tax of Rs. 58 lakhs for the quarter ended June 30, 2024
Slide 10: Statement of Unaudited 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: Investors@happiestminds.com, Tel: +91 80 6196 0300 (Rs. in lakhs) Statement of
Slide 11: Additional Disclosures under Regulation 52(4)
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: |R@happiestminds.com , Tel: +91 80 6196 0300 Additional disclosures as per Reg
Slide 12: 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: Investors@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Unau
Slide 13: Disclosure under Regulation 54(2) & 54(3)
Happiest Minds Technologies Limited Regd. Office: #53/1-4, Hosur Main Road, Madivala, Bengaluru-560068, Karnataka, India CIN of the Co. L72900KA2011PLC057931 P: +91 80 6196 0300, F: +91 80 6196 0700 Website: www.happiestminds.com Email: investors@happiestminds.com August 12, 2024 Listing Compliance
Slide 14: Format for Security Cover
Annexure Format for Security Cover Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Column L Column M Column N Column O Particulars Exclusive Exclusive Pari- Passu Pari- Passu Pari- Passu Assets not Elimination (Total Related to only those items cove
Slide 15: Investor Presentation Q1 FY25
Investor Presentation Q1 FY 25
Slide 16: About Happiest Minds
About Happiest Minds Next-Gen Digital Transformation, Infrastructure, Security and Product Engineering Services Company 279 Active Clients 97% Digital 94% Agile 65 Fortune2000 / Forbes200 22.4% RoCE1 Born Digital Born Agile Billion $ Corporations 13.9% RoE 95% Repeat Business Mission Statement Happi
Slide 17: Mission, Vision and Values
Mission, Vision and Values Our 2021-31 Vision - DELiGHT Our SMILES Values Sharing Design for Perpetuity ESG Excellence Mindful Our Mission Integrity Thought Leadership Happiest People Happiest Customers Learning Profitable Growth Ambassador for Happiness Excellence World Class Team Social Responsibi
Slide 18: Our Business
Our Business IoT Blockchain DevOps & Product & Digital Cloud RPA Engineering Services Generative AI Business Services Software Defined BPM & Networking / NFV Agile and Secure Integration Infrastructure Services Big Data & Advanced Security Analytics Industry Groups (IG) Industrial, Manufacturing and
Slide 19: Born Digital. Born Agile. The Mindful IT Company
Born Digital . Born Agile The Mindful IT Company CREATING MINDFULLY DIGITAL CAPITAL AGILE Business Agile Organization Transformation Business Agile Insights Business Platformize & Agile Modernize Delivery Reimagining Engineering & Operational Excellence Customer Experience www.happiestminds.com 5
Slide 20: Merger & Acquisitions
Merger & Acquisitions Happiest Minds has signed a definitive agreement to acquire 100% equity interest in the Digital Engineering & Transformation company – PureSoftware Technologies Private Limited for a total purchase consideration of ₹ 779 Crores. PureSoftware is 1,200 people strong headquartered
Slide 21: Key Project Wins
Key Project Wins For a world’s leading beverage maker, Happiest For one of the largest integrated laboratory Minds is enhancing their sales process through a system in North America, Happiest Minds will co- generative AI enabled chat bot for actionable partner to implement and manage the Identity an
Slide 22: Awards
Awards ‘50 Best Firms for Data ‘WINNER’ ‘Best Save Water Initiative Happiest Minds’ ‘ Arttha’ Scientists to Work For in at CNBC_TV18 India Risk of the Year - 2024’ at Global was awarded ‘ Best 2024’ by Analytics India Management Awards CSR, Sustainability and ESG Banking-as-a-Service Magazine (AIM)
Slide 23: Analyst Mentions
Analyst Mentions ISG ISG ‘Product Challenger’ ‘Cybersecurity – for Design & Solutions and Services Development, Platform & 2024’ – ISG Provider Lens App Services and Study – Australia, U.K., U.S. Integrated CX-UX-ISG for market standing NELSONHALL ZINNOV ZONES ‘Innovators’ and ‘Execution Zone’ in ‘H
Slide 24: Operational and Financial Metrics
Operational and Financial Metrics Q1 FY 25 10
Slide 25: Results Q1 FY25
Results Q1 FY 25 All amounts in ₹ Lakhs unless stated otherwise Particulars Q1 FY25 Q4 FY24 QoQ Q1 FY24 YoY Revenues 46,383 41,729 11.2% 39,087 18.7% Other Income 2,543 2,521 1,366 Total Income 48,926 44,250 10.6% 40,453 20.9% EBITDA 11,671 10,822 7.8% 10,299 13.3% % 23.9% 24.5% 25.5% Finance Cost 1
Slide 26: Born Digital. Born Agile
Born Digital . Born Agile Digital % of Revenue Agile % of Revenue 95.2% 97.4% 96.8% 96.5% 96.4% 94.5% 94.4% 96.2% 94.3% 94.2% 95.9% 94.0% 95.3% 95.1% 93.6% 93.4% FY 22 FY 23 FY 24 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 FY 22 FY 23 FY24 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Revenue by Business Unit 5.2% Total Income
Slide 27: Operational & Financial Metrics
Operational & Financial Metrics EBITDA (₹ Lakhs) Margin High FCF Conversion (₹ Lakhs) 41,067 42,122 36,480 37,997 29,064 29,477 26.1% 26.2% 24.6% 98.6% 96.0% 97.5% 11,569 10,822 11,671 10,133 10,296 10,744 10,299 10,482 10,519 9,894 24.5% 23.9% 98.4% 98.2% 94.1% 99.3% 99.1% 25.5% 24.4% 24.2% FY 22 F
Slide 28: Operational & Financial Metrics
Operational & Financial Metrics Happiest Minds & Utilization 80.5% 78.2% 78.5% 75.5% 75.6% 76.7% 75.1% 74.6% 6,599 4,917 5,168 5,048 5,285 5,246 5,168 4,168 FY 22 FY 23 FY 24 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Offshore / Onsite By Number of Employees Voluntary Attrition % 1 22.7% 19.8% 95.9% 95.4% 95.9%
Slide 29: Operational & Financial Metrics
Operational & Financial Metrics Revenue Model Q1 25 Model Geography Digital Revenue Verticals1 4.0% 0.9% 7.9% 4.2%2.6% 7.3% 21.5% 12.1% 26.1% 16.9% 16.8% 8.5% 47.5% 8.7% 14.8% 73.9% 66.5% 25.1% 16.4% 7.8% T&M FP Digital Infra / Cloud SAAS 10.7% Americas Europe India ROW Edu Tech HiTech (others) Reta
Slide 30: Operational & Financial Metrics
Operational & Financial Metrics Onsite/Offshore Average Revenue / Active Customer (USD ‘000) 840 803 804 808 794 793 794 774 84.5% 84.8% 85.6% 83.9% 85.1% 86.2% 87.2% 88.6% 15.5% 15.2% 14.4% 16.1% 14.9% 13.8% 12.8% 11.4% FY 22 FY 23 FY 24 Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 FY 22 FY 23 FY 24 Q1 24 Q2 24 Q
Slide 31: Operational & Financial Metrics
Operational & Financial Metrics FY 22 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 FY25 Q1 Verticals Edutech 23.2% 23.2% 24.1% 25.0% 24.0% 22.3% 23.9% 21.5% Hitech 15.8% 16.9% 14.8% 14.2% 14.3% 14.7% 14.5% 14.8% BFSI 13.2% 12.2% 11.0% 10.3% 10.9% 11.4% 10.9% 16.8% Travel, Media and Entertainment (TME
Slide 32: Operational & Financial Metrics
Operational & Financial Metrics FY 22 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 FY25 Q1 Revenue by Geo USA 66.4% 68.1% 71.9% 71.5% 70.3% 69.0% 70.7% 66.5% India 14.1% 15.6% 15.5% 15.7% 16.4% 17.7% 16.3% 16.9% Europe 10.4% 9.7% 8.7% 9.0% 9.0% 9.0% 8.9% 8.7% ROW 9.0% 6.6% 3.9% 3.8% 4.4% 4.4% 4.1% 7.
Slide 33: Operational & Financial Metrics
Operational & Financial Metrics FY 22 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 FY25 Q1 Happiest Minds Onsite 172 227 244 231 224 211 211 412 Offshore 3,996 4,690 4,804 5,054 5,022 4,957 4,957 6,187 Onsite % 4.1% 4.6% 4.8% 4.4% 4.3% 4.1% 4.1% 6.2% Offshore % 95.9% 95.4% 95.2% 95.6% 95.7% 95.9% 95.
Slide 34: Operational & Financial Metrics
Operational & Financial Metrics All figures in ₹ Lakhs FY 22 FY 23 FY24 Q1 FY24 Q2 FY 24 Q3 FY24 Q4 FY 24 FY25 Q1 Revenue by BU IMSS 24,168 21.4% 30,694 21.2% 7,516 18.6% 7,381 17.2% 7,299 16.8% 7,551 17.1% 29,746 17.4% 7,992 16.3% PDES 85,199 75.4% 112,236 77.4% 31,569 78.0% 33,281 77.6% 33,689 77.
Slide 35: Summary Profit & Loss Statement
Summary Profit & Loss Statement All figures in ₹ Lakhs FY 22 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 FY25 Q1 Income Operating revenue 109,365 142,929 39,087 40,662 40,988 41,729 162,466 46,382 Other Income 3,710 2,111 1,366 2,221 2,429 2,521 8,537 2,544 Total income 113,075 145,040 40,453 42,883
Slide 36: Condensed Balance Sheet
Condensed Balance Sheet All figures in ₹ Lakhs 31.03.2022 31.03.2023 30.06.2023 31.09.2023 31.12.2023 31.03.2024 30.06.2024 Assets Non-current assets Property, plant and equipment 78 13,278 13,202 13,386 13,856 13,778 14,062 Goodwill 7,896 13,913 13,901 13,997 14,013 14,032 70,773 Financial & Other
Slide 37: Certain Balance Sheet Ratios
Certain Balance Sheet Ratios Q1 FY25 Q4 FY24 Q1 FY24 FY24 Additional Balance Sheet Ratios Debt-Equity ratio 0.90 0.35 0.58 0.35 Debt Service Coverage ratio (DSCR) 7.43 6.39 5.15 5.25 Interest Service Coverage ratio (ISCR) 4.93 9.25 9.29 8.97 Current ratio 1.24 3.14 2.00 3.14 Long-term Debt to Workin
Slide 38: Global Presence
Global Presence Headquarters – Bengaluru India | USA & Canada | Europe & UK | UAE | Australia www.happiestminds.com 24
Slide 39: Thank You
Thank You Happiest People · Happiest Customers India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com 25
Slide 40: Press Release: Revenue growth accelerates 17.8% YoY in constant currency
PRESS RELEASE Happiest Minds revenue growth accelerates: 17.8% YoY in constant currency; and set to report its best performance since its IPO. EBITDA grows YoY by 13.3% to ₹ 117 Crores Bengaluru, Seattle and London, August 12, 2024: Happiest Minds Technologies Limited (NSE:HAPPSTMNDS), a ‘Born Digit
Slide 41: Particulars Q1 FY25 Q4 FY24
All amounts in ₹ Lakhs unless stated otherwise. Particulars Q1 FY25 Q4 FY24 QoQ Q1 FY24 YoY Revenues 46,383 41,729 11.2% 39,087 18.7% Other Income 2,543 2,521 1,366 Total Income 48,926 44,250 10.6% 40,453 20.9% EBITDA 11,671 10,822 7.8% 10,299 13.3% % 23.9% 24.5% 25.5% Finance Cost 1,983 1,033 1,007
Slide 42: Key wins
Key wins • For world’s leading beverage maker, Happiest Minds is enhancing their sales process through an generative AI enabled chat bot for actionable intelligence and decision making. • For US based provider of sustainable solutions, this new win entails Happiest Minds to enhance their data platfo
Slide 43: About Happiest Minds Technologies Limited
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 spectrum of disruptive technologie
Happiest Minds Technologies — Q1 FY2025 Earnings Presentation on 6ix