Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q2 FY2022 Earnings Presentation
42 slides from Happiest Minds Technologies's earnings presentation, Oct 27, 2021
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 Review Report - Consolidated
Chartered Accountants i Prestige Trade Tower, Level 19 Deloitte 46, Palace Road, High Grounds = Be I - 560 001 Haskins & Sells Karnataka, nda Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS
Slide 3: Auditor's Review Report (continued)
Deloitte Haskins & Sells 6. We did not review the interim financial results of the ESOP trust included in the consolidated unaudited financial results, whose interim financial results reflect total assets of Rs. 65,043 lakhs as at September 30, 2021 and, total revenue of Rs. Nil and Rs. Nil, total n
Slide 4: Unaudited Consolidated Financial Results Q2 and H1 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 Unaud
Slide 5: 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 Unaudited Consolidated Statement
Slide 6: 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 Unaudited Consolidated Statement
Slide 7: 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 Unaudited C
Slide 8: 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 Unaudited C
Slide 9: Independent Auditor's Review Report - Standalone
< Chartered Accountants Deloitte Prestige Trade Tower, Level 19 46, Palace Road, High Grounds - Bengaluru - 560 001 Haskins & Sells Kernetake, Indi Tel: +91 80 6188 6000 Fax: +91 80 6188 6011 INDEPENDENT AUDITOR’S REVIEW REPORT ON REVIEW OF INTERIM STANDALONE FINANCIAL RESULTS TO THE BOARD OF DIRECT
Slide 10: Auditor's Review Report (continued)
Deloitte Haskins & Sells 5. We did not review the interim financial results of Happiest Minds Technologies Share Ownership Plan Trust (the “ESOP trust”) included in the standalone unaudited financial results, whose interim financial results reflect total assets of Rs. 65,043 lakhs as at September 30
Slide 11: Unaudited Standalone Financial Results Q2 and H1 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: Investors@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement o
Slide 12: 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: Investors@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Standalone State
Slide 13: 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: Investors@happiestminds.com , Tel: +91 80 6196 0300 Unaudited Standalone State
Slide 14: 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 15: Notes to Standalone 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: Investors@happiestminds.com , Tel: +91 80 6196 0300 Notes to Statement of Unau
Slide 16: Investor Presentation & Fact Sheet: Q2 FY22
Investor Presentation & Fact sheet: Q2 FY 22 October 2021
Slide 17: 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 18: Next Generation Digital Transformation Company
Next Generation Digital Transformation, Infrastructure, Security and Product Engineering Services Company IPO Digital In September 2020 Digital Agile Active clients RoCE1 • Completed 10 years of 50 Fortune2000 / Forbes200 / existence in August Billion $ corporations 2021 87% of repeat business RoE •
Slide 19: Technologies and industries served
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 20: Our Mission
Learning Excellence Integrity Social Responsibility Mindful Sharing Our Mission Happiest People . Happiest Customers Happiest Minds is the first Indian IT firm to be The Mindful IT Company Be Recognized for Design Happiest Accelerate Build & Sustain Be the Thought Leadership in our Be known for our
Slide 21: Creating Digital Capital
Business Agile Transformation Organization Agile Business CREATING MINDFULLY DIGITAL AGILE CAPITAL Platformize and Agile Modernize Delivery Reimagining Engineering & Customer Experience Operational Excellence 6 www.happiestminds.com
Slide 22: Key project wins
With a Fortune 100 For a multi-billion-dollar For a publicly traded global For one of the world's Healthcare provider, supply chain industry leader in Information largest brokers of fine and Happiest Minds has leader, Happiest Minds is Security company, Happiest decorative art, jewelry and helping t
Slide 23: Awards
AWARDS Ranked Among India’s Top 50 Best Asiamoney Asia’s Outstanding Companies Poll 2021 Workplaces For Women 2021 by • Most Outstanding Company in India under Small / Great Place to Work® Institute Mid-Caps category • Most Outstanding IPO in India www.happiestminds.com 8
Slide 24: Operational and Financial Metrics - Q2 FY22
A . . De happiest minds = The Mindful IT Company Born Digital . Born Agile Operational and Financial Metrics — Q2 FY22 Yy 7 " " Y ~YZMM Ht Pb veaavmmmveeanraman enn XS
Slide 25: Q2 FY22 financial summary
A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q2 FY 22 Q1 FY 22 QoQ Q2 FY 21 YoY H1 FY 22 H1 FY21 YoY Revenues ($'000) 35,809 33,152 8.0% 24,712 44.9% 68,961 48,156 43.2% Revenues 26,453 24,461 8.1% 18,284 44.7% 50,914 35,986 41.5% Other Income 959 926 3.6% 507 89.2% 1,885 1,504 25.3
Slide 26: Digital and Agile % of revenue
Digital Agile % of Revenue % of Revenue 97.2% 96.9% 97.1% 93.9% 94.2% 96.8% 96.6% 96.6% 96.7% 92.8% 92.8% 93.4% 93.2% 96.3% 96.2% 90.2% 87.9% 71.1% FY 19 FY 20 FY 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 FY 19 FY 20 FY 21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 11 www.happiestminds.com
Slide 27: Revenue growth and revenue share
Revenue - Growth Revenue Share Total Income (₹ Lakhs) 3.4% 79,765 21.0% 71,423 60,181 46.2% 48,912 27,412 25,387 22,374 18,699 18,791 20,129 29.4% PES DBS IMSS Oth Inc FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 12 www.happiestminds.com
Slide 28: EBITDA and high FCF conversion
EBITDA High FCF1 conversion 99.6 (₹ Lakhs) Margin % (₹ Lakhs) % % 27.0% 21,476 21,573 99.6 % 15.8% 11,266 11,312 25.6 26.1 % 26.3 % 98.8 99.3 96.2 11.0% 29.7 % % 99.5 % % % 99.2 % 25.6 26.3 99.8 % % 7,012 6,549 99.8 % 6,569 6,743 6,628 % 6,615 % 5,969 5,883 5,920 5,853 4,782 4,939 4,772 4,931 1.6% 8
Slide 29: Headcount, utilization and attrition
Happiest Minds & Utilization 79.5% 81.6% 82.6% 82.1% 79.7% 76.9% 78.7% 77.3% 74.9% 68.4% 3,538 3,796 3,228 2,885 3,228 2,462 2,666 2,658 2,721 2,253 FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 25.2% 18.7% 18.5% 16.2% 95.3%
Slide 30: Revenue model, concentration and million-dollar customers
Revenue Model Q2 22 Model Geography Digital Revenue1 Vertical1 3.3% 11.6% 24.4% 10.0% 9.8% 23.2% 8.3% 13.0% 12.5% 42.8% 6.6% 13.5% 11.1% 12.2% 13.3% 65.9% 75.6% 10.6% 19.6% 13.0% T&M FP Digital Infra / Cloud SAAS Edu Tech Hitech Retail / CPG Americas Europe India ROW Security Analytics / AI TME BFSI
Slide 31: Onsite/offshore and average revenue per customer
Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 783 737 751 683 659 634 615 615 502 471 78.6% 78.0% 77.5% 79.0% 78.1% 81.0% 81.0% 83.9% 85.0% 84.0% 21.4% 22.0% 22.5% 21.0% 21.9% 19.0% 19.0% 16.1% 15.0% 16.0% FY18 FY19 FY20 FY21 Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 Q2 22 FY18
Slide 32: Revenue by industry group and service offering
FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Customer Industry group Edutech 18.0% 21.3% 21.3% 27.0% 27.0% 24.9% 24.1% 25.6% 23.4% 23.2% Hitech 24.6% 21.0% 21.0% 20.5% 19.5% 20.2% 13.5% 18.2% 14.2% 13.5% BFSI 17.9% 18.2% 17.5% 17.4% 16.3% 17.4% 14.8% 16.4% 13.4% 13.3% Travel, Media
Slide 33: Revenue by geography and customer size
FY18 FY19 FY20 FY21 Q1 FY21 Q2 FY21 Q3 FY21 Q4 FY 21 FY22 Q1 FY22 Q2 Location of external customer USA 73.5% 75.5% 77.5% 77.3% 77.3% 72.2% 68.4% 73.4% 67.8% 65.9% India 11.7% 11.9% 11.9% 10.9% 10.9% 13.4% 11.7% 11.8% 12.4% 13.0% Europe 11.4% 9.5% 7.2% 9.8% 9.2% 10.6% 11.6% 10.4% 10.4% 11.1% ROW 3.4%
Slide 34: Headcount, utilization, DSO, EPS and return ratios
FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Happiest Minds Onsite 105 132 123 124 133 145 166 166 180 182 Offshore 2,148 2,330 2,543 2,534 2,588 2,740 3,062 3,062 3,358 3,614 Total 2,253 2,462 2,666 2,658 2,721 2,885 3,228 3,228 3,538 3,796 Happiest Minds by delivery centres Onsite
Slide 35: Revenue by business units
(All figures in ₹ Lakhs) FY18 FY19 FY20 FY21Q1 FY21Q2 FY21Q3 FY21Q4 FY21 FY22Q1 FY22Q2 Revenue by Business Units Infrastructure Management & Security Services 9,862 20.2% 12,943 21.5% 15,361 21.5% 3,641 19.5% 3,959 21.1% 4,334 21.5% 4,487 20.1% 16,421 20.6% 5,251 20.7% 5,747 21.0% Digital Business S
Slide 36: Summary Profit & Loss statement
Summary Profit & Loss statement (All figures in ₹ Lak hs) FY 18 FY 19 FY 20 FY 21 Q1 FY 21 Q2 FY 21 Q3 FY 21 Q4 FY 21 FY 22 Q1 FY 22 Q2 Income Operating revenue 46,289 59,036 69,821 17,702 18,284 19,284 22,071 77,341 24,461 26,453 Other income 2,623 1,145 1,602 997 507 845 303 2,424 926 959 Total in
Slide 37: Condensed Balance Sheet
Condensed Balance Sheet (All figures in ₹ Lak hs ) 31.03.2018 31.03.2019 31.03.2020 30.06.2020 30.09.2020 31.12.2020 31.03.2021 30.06.2021 30.09.2021 Assets Non-current Assets Property, plant and equipment 264 214 93 77 60 72 69 83 86 Goodwill 2,961 1,736 610 610 611 611 7,644 7,756 7,742 Financial
Slide 38: investors@happiestminds.com
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Slide 39: Press release: Q2 FY22 results
PRESS RELEASE Happiest Minds reports yet another quarter of stellar performance. US$ denominated QoQ & YoY revenue growth of 8.0% & 44.9%. Revenues at ₹ 274 Crores and Profit Before Tax at ₹ 59 Crores. Declares Interim Dividend of ₹ 1.75 per equity share. Bengaluru, India, San Jose, California and L
Slide 40: Financial highlights for quarter ended September 30, 2021
Venkatraman N, MD & CFO, Happiest Minds Technologies talking on the financials said, “we have closed yet another good quarter with all-round performance. I am happy to state that during the first half of the year we added on a net basis, 568 happiest minds. We continue to show healthy cash flows and
Slide 41: Key Project Wins
Key Project Wins: • For a multi-billion-dollar supply chain industry leader, Happiest Minds is helping them build their new SaaS based product • For a publicly traded global leader in Information Security company, Happiest Minds is building an offshore center to take end-to-end ownership for new fea
Slide 42: 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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