Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q4 FY24 Earnings Presentation
56 slides from Happiest Minds Technologies's earnings presentation, May 6, 2024
Slide 1: Outcome of the Board Meeting held on May 06, 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 May 06, 2024 Listing Compliance & L
Slide 2: Board meeting outcome letter (signature page)
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 The Board meeting commenced at 9:45
Slide 3: Declaration under Regulation 33(3)(d) and 52(3)(a)
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 May 06, 2024 Listing Compliance & L
Slide 4: Independent Auditor's Report on Consolidated Financial Results
. Chartered Accountants e Ol e Prestige Trade Tower, Level 19 . 46, Palace Road, High Grounds Haskins & Sells Bengal 30000 Karnataka, India 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 RES
Slide 5: Auditor's Report: Conclusion on Quarterly Results
Deloitte Haskins & Sells (b) Conclusion on Unaudited Consolidated Financial Results for the quarter ended March 31, 2024 With respect to the Consolidated Financial Results for the quarter ended March 31, 2024, based on our review conducted and procedures performed as stated in paragraph (b) of Audit
Slide 6: Management Responsibilities for Consolidated Results
Deloitte Haskins & Sells The respective Board of Directors of the companies included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding the assets of the Group and for preventing and detecting frauds and other irr
Slide 7: Auditor's Responsibilities (continued)
Deloitte Haskins & Sells ¢ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Board of Directors. ¢ Evaluate the appropriateness and reasonableness of disclosures made by the Board of Directors in terms of the requirements specified un
Slide 8: Review of Consolidated Results for the Quarter
Deloitte Haskins & Sells (b) Review of the Consolidated Financial Results for the quarter ended March 31, 2024 We conducted our review of the Consolidated Financial Results for the quarter ended March 31, 2024 in accordance with the Standard on Review Engagements (SRE) 2410 ‘Review of Interim Financ
Slide 9: Other Matters: Unaudited Subsidiary Financials
Deloitte Haskins & Sells ¢ We did not audit the financial statements of a subsidiary included in the consolidated financial results, whose financial statements reflect total assets of Rs. 2,826 lakhs as at March 31, 2024 and total revenues of Rs. 2,448 lakhs and Rs. 9,073 lakhs for the quarter and y
Slide 10: 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 Consolidated Statement of Assets
Slide 11: Statement of 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 Conso
Slide 12: 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 Consolidated Statement of Cash Fl
Slide 13: 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: IR@happiestminds.com , Tel: +91 80 6196 0300 Additional disclosures as per Reg
Slide 14: 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 Consolidate
Slide 15: 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 Consolidate
Slide 16: Independent Auditor's Report on Standalone Financial Results
. Chartered Accountants De oitte Prestige Trade Tower, Level 19 . 46, Palace Road, High Grounds Haskins & Sells caret a 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 RESULTS TO THE BOARD OF D
Slide 17: Basis for Opinion on Standalone Results
Deloitte Haskins & Sells Basis for Opinion on the Audited Standalone Financial Results for the year ended March 31, 2024 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 thos
Slide 18: Auditor's Responsibilities (Standalone)
Deloitte Haskins & Sells Auditor's Responsibilities (a) Audit of the Standalone Financial Results for the year ended March 31, 2024 Our objectives are to obtain reasonable assurance about whether the Standalone Financial Results for the year ended March 31, 2024 as a whole is free from material miss
Slide 19: Auditor's Responsibilities (continued)
Deloitte Haskins & Sells (b) e Perform procedures in accordance with the circular issued by the SEBI under Regulation 33(8) of the Listing Regulations to the extent applicable. ¢ Obtain sufficient appropriate audit evidence regarding the Annual Standalone Financial Results of the Company and its ESO
Slide 20: Other Matters (Standalone)
Deloitte Haskins & Sells Other Matters « The Statement includes the results for the Quarter ended March 31, 2024 being the balancing figure between audited figures in respect of the full financial year and the published year to date figures up to the third quarter of the current financial year which
Slide 21: 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 Standalone Statement of As
Slide 22: Standalone Financial Results for the Quarter and Year
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 23: 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 Standalone Statement of Ca
Slide 24: Additional Disclosures under Regulation 52(4) (Standalone)
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 Additional disclosures as per Reg
Slide 25: 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 Stan
Slide 26: 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 May 06, 2024 Listing Compliance & L
Slide 27: 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 28: Disclosure under SEBI Framework for Large Corporates
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 May 06, 2024 Listing Compliance & L
Slide 29: Investor Presentation & Fact Sheet: Q4 FY24
Investor Presentation & FACT SHEET: Q4 FY 24 May 2024
Slide 30: About Happiest Minds
About Happiest Minds Next-Gen Digital Transformation, Infrastructure, Security and Product Engineering Services Company 250 Active Clients 96% Digital 95% Agile 61 Fortune2000 / Forbes200 22.3% RoCE1 Born Digital Born Agile Billion $ Corporations 16.9% RoE 90% Repeat Business Mission Statement Happi
Slide 31: 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 32: 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) Healthcare & Hi-Tech and Indu
Slide 33: Born Digital. Born Agile. The Mindful IT Company
Born Digital . Born Agile The Mindful IT Company CREATING MINDFULLY DIGITAL CAPITAL AGILE Business Agile Transformation Organization Business Agile Insights Business Platformize & Agile Modernize Delivery Reimagining Engineering & Operational Customer Experience Excellence © Confidential – www.happi
Slide 34: Mergers & Acquisitions
Merger & Acquisitions 1 2 Happiest Minds has signed a Happiest Minds acquired Macmillan definitive agreement to acquire 100% Learning India Private Limited to equity interest in the Digital strengthen its EduTech Vertical, for a Engineering & Transformation purchase consideration of ₹ 4.5 company –
Slide 35: Key Client Wins
For Enercon, a leading wind For MindSculpt Analytics, a For the professional For a South-East Asian energy technology company, Healthcare Solutions services arm of a global Bottling company, Happiest Happiest Minds was chosen as a Company, Happiest Minds is hyperscaler, Happiest Minds is engaged in
Slide 36: Awards and Recognition
‘Top 50 India’s Best Workplaces ‘Best Tech for Security’ Award at in Health and Wellness 2023’ by the 3rd Edition of the IDEA Awards Great Place To Work® Institute ‘Top Firms to Work for in AI & Analytics’ ‘ISOL Corporate Award on Value Based Sridhar Mantha recognized as Sustainable Organizations’ ‘
Slide 37: Analyst Recognition: Everest and Avasant
EVEREST AVASANT ‘Aspirant’ in Retail IT ‘Pioneer’ in Service Services Providers ESG Index 2023-2024 8 © Confidential – www.happiestminds.com
Slide 38: Operational and Financial Metrics – Q4 FY24
Operational and Financial Metrics – Q4 FY24 www.happiestminds.com
Slide 39: Results Q4 FY24
Results Q4 FY 24 A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q4 FY 24 Q3 FY 24 QoQ Q4 FY 23 YoY FY 24 FY 23 YoY Revenues 41,729 40,988 1.8% 37,798 10.4% 162,466 142,929 13.7% Other Income 2,521 2,429 3.8% 845 198.3% 8,537 2,111 304.4% Total Income 44,250 43,417 1.9% 38,643 14.5% 17
Slide 40: Born Digital. Born Agile
Born Digital. Born Agile Digital Agile % of Revenue % of Revenue 93.4% 93.6% 94.5% 94.0% 94.2% 94.3% 94.4% 95.2% 96.5% 96.4% 96.3% 96.8% 95.9% 96.2% 95.1% 95.3% FY 22 FY 23 FY 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 FY 22 FY 23 FY 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Revenue Revenue by BU Tenure of Customer To
Slide 41: Operational & Financial Metrics: EBITDA and FCF
Operational & Financial Metrics EBITDA High FCF Conversion (₹ Lakhs) Margin % (₹ Lakhs) 42,122 41,067 37,997 36,480 29,477 29,064 26.1% 26.2% 24.6% 98.6% 96.0% 97.5% 10,822 9,946 10,133 10,296 10,744 10,062 10,299 10,482 10,519 9,894 25.5% 24.5% 98.8% 98.4% 98.2% 94.1% 99.3% 26.0% 24.4% 24.2% FY 22
Slide 42: Operational & Financial Metrics: Headcount, Utilization, Attrition
Operational & Financial Metrics Happiest Minds & Utilization 80.5% 78.5% 75.5% 75.6% 76.7% 74.6% 74.6% 75.1% 4,917 5,168 4,917 5,048 5,285 5,246 5,168 4,168 FY 22 FY 23 FY 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 22.7% 19.8% 19.8% 16.6% 14.4%
Slide 43: Operational & Financial Metrics: Revenue Model
Operational & Financial Metrics Revenue Model Q4 24 Model Geography Digital Revenue Verticals1 3.2% 6.3% 1.6% 4.4% 5.0% 7.4% 22.3% 17.7% 13.8% 27.7% 11.4% 41.8% 9.0% 9.6% 14.7% 72.3% 16.1% 69.0% 7.8% 26.5% 12.2% T&M FP Americas Europe India ROW Digital Infra / Cloud SAAS Security Edu Tech HiTech (ot
Slide 44: Operational & Financial Metrics: Onsite/Offshore, Revenue per Customer
Operational & Financial Metrics Onsite/Offshore Average Revenue / Active Customer By Revenue (USD ‘000) 803 794 803 804 808 794 793 774 84.5% 84.8% 85.6% 84.1% 83.9% 85.1% 86.2% 87.2% 15.5% 15.2% 14.4% 15.9% 16.1% 14.9% 13.8% 12.8% FY 22 FY 23 FY 24 Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 FY 22 FY 23 FY 24 Q4
Slide 45: Operational & Financial Metrics: Verticals and Offerings
Operational & Financial Metrics FY 22 FY23 Q4 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 Verticals Edutech 23.2% 22.2% 23.2% 24.1% 25.0% 24.0% 22.3% 23.9% Hitech 15.8% 19.5% 16.9% 14.8% 14.2% 14.3% 14.7% 14.5% BFSI 13.2% 10.8% 12.2% 11.0% 10.3% 10.9% 11.4% 10.9% Travel, Media and Entertainment (TME
Slide 46: Operational & Financial Metrics: Revenue by Geography
Operational & Financial Metrics FY 22 FY23 Q4 FY 23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY 24 Revenue by Geo USA 66.4% 70.5% 68.1% 71.9% 71.5% 70.3% 69.0% 70.7% India 14.1% 15.0% 15.6% 15.5% 15.7% 16.4% 17.7% 16.3% Europe 10.4% 9.4% 9.7% 8.7% 9.0% 9.0% 9.0% 8.9% ROW 9.0% 5.1% 6.6% 3.9% 3.8% 4.4% 4.4% 4.
Slide 47: Operational & Financial Metrics: Headcount, DSO, Capital Ratios
Operational & Financial Metrics FY22 FY23 Q4 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Happiest Minds Onsite 172 227 227 244 231 224 211 211 Offshore 3,996 4,690 4,690 4,804 5,054 5,022 4,957 4,957 Onsite % 4.1% 4.6% 4.6% 4.8% 4.4% 4.3% 4.1% 4.1% Offshore % 95.9% 95.4% 95.4% 95.2% 95.6% 95.7% 95.9%
Slide 48: Operational & Financial Metrics: Revenue by Business Unit
Operational & Financial Metrics All figures in ₹ Lakhs FY22 FY23 Q4 FY23 FY24 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Revenue by BU IMSS 24,168 21.4% 7,525 19.5% 30,694 21.2% 7,516 18.6% 7,381 17.2% 7,299 16.8% 7,551 17.1% 29,746 17.4% DBS 32,891 29.1% 11,180 28.9% 43,070 29.7% 11,175 27.6% 11,672 27.2% 12,
Slide 49: Summary Profit & Loss Statement
Summary Profit & Loss Statement All figures in ₹ Lakhs FY 22 FY 23 Q4 FY 23 FY 24 Q1 FY 24 Q2 FY 24 Q3 FY 24 Q4 FY 24 Income Operating revenue 1,09,365 37,798 1,42,929 39,087 40,662 40,988 41,729 1,62,466 Other income 3,710 845 2,111 1,366 2,221 2,429 2,521 8,537 Total income 1,13,075 38,643 1,45,04
Slide 50: Condensed Balance Sheet
Condensed Balance Sheet All figures in ₹ Lakhs 31.03.2022 31.12.2022 31.03.2023 30.06.2023 30.09.2023 31.12.2023 31.03.2024 Assets Non-current Assets Property, plant and equipment 78 12,899 13,278 13,202 13,386 13,856 13,778 Goodwill 7,896 8,562 13,913 13,901 13,997 14,013 14,032 Financial & Other a
Slide 51: Global Presence
Global Presence Headquarters – Bengaluru India | USA & Canada | Europe & UK | UAE | Australia © Confidential – www.happiestminds.com 23
Slide 52: Happiest People · Happiest Customers
Happiest People · Happiest Customers investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Slide 53: Press Release: Happiest Minds reports industry leading growth
PRESS RELEASE Happiest Minds reports industry leading growth and on track for vision of $1 Bn revenues by 2031. Revenues at US$ 196.1 Mn, grew 11% growth in constant currency; Beats EBITDA guidance at 24.6% Proposes final dividend of ₹ 3.25 per share; total dividend for the year of ₹5.75. Bengaluru,
Slide 54: Press Release: Results Table and CFO Commentary
All amounts in ₹ Lakhs unless stated otherwise Particulars Q4 FY 24 Q3 FY 24 QoQ Q4 FY 23 YoY FY 24 FY 23 YoY Revenues 41,729 40,988 1.8% 37,798 10.4% 162,466 142,929 13.7% Other Income 2,521 2,429 3.8% 845 198.3% 8,537 2,111 304.4% Total Income 44,250 43,417 1.9% 38,643 14.5% 171,003 145,040 17.9%
Slide 55: Q4 FY24 Key Wins
Q4 FY24 Key wins • For Enercon, a leading wind energy technology company, Happiest Minds was chosen as a strategic partner to build their platform which optimizes wind energy generation. • For MindSculpt Analytics, a Healthcare Solutions Company, Happiest Minds is building an advanced AI Medical Pre
Slide 56: Announcements and About Happiest Minds
• Happiest Minds is ‘Aspirant’ in Retail IT Services – Everest • Happiest Minds is ‘Pioneers’ in Service Providers ESG Index 2023-2024 – Avasant Announcements • The Board of Directors of the Company at their meeting held on May 6, 2024 has recommended a final dividend of ₹3.25 per equity share of fa
Happiest Minds Technologies — Q4 FY24 Earnings Presentation on 6ix