Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q1 FY25 Earnings Presentation
25 slides from Happiest Minds Technologies's earnings presentation, 2024
Slide 1: Investor Presentation Q1 FY25
Investor Presentation Q1 FY 25
Slide 2: 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 3: 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 4: 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 5: 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 6: 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 7: 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 8: 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 9: 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 10: Operational and Financial Metrics
Operational and Financial Metrics Q1 FY 25 10
Slide 11: 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 12: 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 13: 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 14: 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 15: 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 16: 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 17: 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 18: 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 19: 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 20: 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 21: 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 1,09,365 1,42,929 39,087 40,662 40,988 41,729 1,62,466 46,382 Other Income 3,710 2,111 1,366 2,221 2,429 2,521 8,537 2,544 Total income 1,13,075 1,45,040 40,453 4
Slide 22: 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 23: 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 24: Global Presence
Global Presence Headquarters – Bengaluru India | USA & Canada | Europe & UK | UAE | Australia www.happiestminds.com 24
Slide 25: Thank You
Thank You Happiest People · Happiest Customers India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com 25
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