Happiest Minds Technologies Ltd. · NSE:HAPPSTMNDS
Happiest Minds Technologies — Q1 FY2023 Earnings Presentation
38 slides from Happiest Minds Technologies's earnings presentation, Jul 21, 2022
Slide 1: Outcome of Board Meeting letter to exchanges
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 July 21, 2022 Listing Compliance &
Slide 2: Auditor review report - 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 CONSOLIDATED FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF HAPPIEST MINDS TECHNOLOGIES LIMITED 1. We have reviewed the accompanying State
Slide 3: Auditor review report (continued)
6. We did not review the interim financial results of Happiest Minds Technologies Share results, whose interim financial results reflect total assets of Rs. 35,000 Lakhs as at June 30, 2022, total revenue of Rs. Nil, total net profit after tax of Rs. 29.52 lakhs and total comprehensive income/(loss)
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: 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 6: 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 7: Auditor review report - 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 FINANCIAL RESULTS TO THE BOARD OF DIRECTORS OF HAPPIEST MINDS TECHNOLOGIES LIMITED 1. We have reviewed the accompanying Statement of Stand
Slide 8: Auditor review report (continued)
5. We did not review the interim financial results of Happiest Minds Technologies Share results, whose interim financial results reflect total assets of Rs. 35,000 Lakhs as at June 30, 2022, total revenue of Rs. Nil, total net profit after tax of Rs. 29.52 lakhs and total comprehensive income/(loss)
Slide 9: 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: IR@happiestminds.com , Tel: +91 80 6196 0300 (Rs. in lakhs) Statement of Unaud
Slide 10: 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 Unaudited S
Slide 11: Investor Presentation & Fact Sheet: Q1 FY23
Investor Presentation & FACT SHEET: Q1 FY 23 July 2022
Slide 12: Safe Harbor
Safe Harbor 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
Slide 13: About Happiest Minds
About Happiest Minds Next-Gen Digital Transformation, Infrastructure, Security and Product Engineering Services Company Active Clients Digital Agile RoCE1 56 Fortune2000 / Forbes200 Billion $ Corporations RoE 90% Repeat Business R Mission Statement India's Best Companies to Work for 2022 Industry le
Slide 14: Mission, Vision and Values
Mission, Vision and Values Our 2021-31 Vision - DELiGHT Our SMILES Values Design for Perpetuity Sharing ESG Excellence Mindful Our Mission Thought Leadership Integrity Happiest People Happiest Customers Profitable Growth Learning Ambassador for Happiness Excellence World Class Team Social Responsibi
Slide 15: Our Business
Our Business IoT Blockchain DevOps & Enterprise Digital Cloud RPA Transformation Next Gen. Product & Platform Engineering Software Defined BPM & Networking / NFV Agile and Secure Integration Infrastructure Big Data & Advanced Security Analytics Hi-Tech EduTech BFSI Mfg. / Industrial Retail / CPG Tra
Slide 16: 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 www.happiestminds.com Conf
Slide 17: Q1 Key Project Wins
Q1 Key Project Wins 1 2 3 For a large British based For a large bottling company in For a leading Semiconductor construction and Infrastructure North America, Happiest Minds is company, Happiest Minds is company, Happiest Minds is chosen chosen as a trusted advisor for providing engineering services
Slide 18: Analyst Mentions
Analyst Mentions ‘Innovator’ in NelsonHall’s Major Contender in Digital Banking Services Everest's Digital Product NEAT Report Engineering PEAK Matrix All logos are properties of their respective owners www.happiestminds.com 8
Slide 19: Award Wins
Award Wins Ashok Soota is conferred with the Recognized as a Finalist for the Happiest Minds is ranked 29 in India’s Best Companies To Work For 2022 prestigious CII Quality Ratna 2022 Microsoft Power Automate Award 2021 Partner of the Year Award. Priya Kanduri wins Happiest Minds the ‘Women in AI’ a
Slide 20: Operational and Financial Metrics – Q1 FY23
Operational and Financial Metrics – Q1 FY23 www.happiestminds.com
Slide 21: Results Q1 FY23
Results Q1 FY 23 A ll amo unts in ₹ Lakhs unless stated o therwise Particulars Q1 FY 23 Q4 FY 22 QoQ Q1 FY 22 YoY Revenues ($'000) 42,224 39,876 5.9% 33,152 27.4% Revenues 32,892 30,057 9.4% 24,461 34.5% Other Income 382 991 926 Total Income 33,274 31,048 7.2% 25,387 31.1% EBITDA 8,775 8,158 7.6% 6,
Slide 22: Born Digital. Born Agile
Born Digital. Born Agile Digital Agile % of Revenue % of Revenue 96.9% 93.9% 93.4% 93.4% 93.2% 93.4% 93.4% 93.1% 96.8% 96.5% 96.7% 96.8% 96.6% 96.2% 96.0% 87.9% FY20 FY21 FY22 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 FY20 FY21 FY22 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 www.happiestminds.com 12
Slide 23: Operational & Financial Metrics - Revenue
Operational & Financial Metrics Revenue Revenue by BU Total Income (₹ Lakhs) 113,075 1.1% 79,765 22.1% 71,423 47.0% 33,274 31,048 27,412 29,228 25,387 29.8% FY20 FY21 FY 22 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 PES DBS IMSS Oth Inc PES : Product Engineering Services; DBS : Digital Business Solutions; IMSS :
Slide 24: Operational & Financial Metrics - EBITDA and FCF
Operational & Financial Metrics EBITDA High FCF Conversion (₹ Lakhs) Margin % (₹ Lakhs) % 98.6% 26.1% 99.5% 29,477 27.0% 99.6% 21,525 26.4% 26.3% 26.3% 29,064 26.1% 25.7% 99.4% 99.4% 98.5% 15.8% 21,428 99.3% 96.2% 11,312 8,775 7,688 8,158 6,615 7,034 11,266 8,106 8,639 6,551 6,765 7,462 FY 20 FY 21
Slide 25: Operational & Financial Metrics - Headcount and Attrition
Operational & Financial Metrics Happiest Minds & Utilization 82.1% 81.0% 79.5% 80.5% 79.7% 79.4% 79.1% 76.9% 4,168 3,796 4,021 4,168 4,188 3,228 3,538 2,666 FY20 FY21 FY22 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Offshore / Onsite Voluntary Attrition % 1 By Number of Employees 24.4% 22.7% 22.7% 21.1% 18.7% 18.
Slide 26: Operational & Financial Metrics - Revenue Model
Operational & Financial Metrics Revenue Model Q1 23 Model Geography Digital Revenue1 Vertical1 6.9% 3.4% 6.1% 6.2% 10.0% 23.7% 15.8% 11.6% 24.9% 8.2% 45.7% 10.7% 11.7% 13.7% 15.6% 66.6% 75.1% 21.5% 12.7% 10.0% Americas Europe India ROW Digital Infra / Cloud SAAS T&M FP Edu Tech Hitech Retail / CPG S
Slide 27: Operational & Financial Metrics - Onsite/Offshore
Operational & Financial Metrics Onsite/Offshore Average Annual Revenue / Active Customer By Revenue (USD ‘000) 810 783 794 796 774 751 634 615 77.5% 81.0% 84.0% 83.9% 84.5% 85.7% 85.7% 85.7% 22.5% 19.0% 16.0% 16.1% 15.5% 14.3% 14.3% 14.3% FY 20 FY 21 FY 22 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 FY 20 FY 21 F
Slide 28: Operational & Financial Metrics - Industry and Offerings
Operational & Financial Metrics FY20 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 Customer Industry group Edutech 21.3% 25.6% 23.4% 23.2% 22.6% 23.6% 23.2% 23.7% Hitech 21.0% 18.2% 14.2% 13.5% 18.3% 16.7% 15.8% 15.6% BFSI 17.5% 16.4% 13.4% 13.3% 12.5% 13.7% 13.2% 13.7% Travel, Media and Entert
Slide 29: Operational & Financial Metrics - Geography and Customers
Operational & Financial Metrics FY20 FY 21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY 22 FY23 Q1 Revenue by Customer Geo USA 77.5% 73.4% 67.8% 65.9% 66.6% 65.7% 66.4% 66.6% India 11.9% 11.8% 12.4% 13.0% 14.6% 16.2% 14.1% 15.8% Europe 7.2% 10.4% 10.4% 11.1% 9.8% 10.4% 10.4% 10.7% ROW 3.4% 4.4% 9.4% 10.0% 9.0
Slide 30: Operational & Financial Metrics - Workforce and Returns
Operational & Financial Metrics FY20 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY23 Q1 Happiest Minds Onsite 123 166 180 182 183 172 172 185 Offshore 2,543 3,062 3,358 3,614 3,838 3,996 3,996 4,003 Total 2,666 3,228 3,538 3,796 4,021 4,168 4,168 4,188 Happiest Minds % Onsite 4.6% 5.1% 5.1% 4.8% 4.6%
Slide 31: Operational & Financial Metrics - Revenue by BU
Operational & Financial Metrics (All figures in ₹ Lakhs) FY20 FY21 FY22 Q1 FY22 Q2 FY22 Q3 FY22 Q4 FY22 FY23 Q1 Revenue by BUs IMSS 15,361 21.5% 16,421 20.6% 5,251 20.7% 5,747 21.0% 6,322 21.6% 6,848 22.1% 24,168 21.4% 7,356 22.1% DBS 19,167 26.8% 21,288 26.7% 7,570 29.8% 8,046 29.4% 8,511 29.1% 8,7
Slide 32: Summary Profit & Loss Statement
Summary Profit & Loss Statement (All figures in ₹ Lakhs) FY 20 FY 21 FY 22 Q1 FY 22 Q2 FY 22 Q3 FY 22 Q4 FY 22 FY 23 Q1 Income Operating revenue 69,821 77,341 24,461 26,453 28,394 30,057 109,365 32,892 Other income 1,602 2,424 926 959 834 991 3,710 382 Total income 71,423 79,765 25,387 27,412 29,228
Slide 33: Balance Sheet
(All figures in ₹ Lakhs ) 31.03.2020 31.03.2021 30.06.2021 30.09.2021 31.12.2021 31.03.2022 30.06.2022 Assets Non-current Assets Property, plant and equipment 93 69 83 86 77 78 89 Goodwill 610 7,644 7,756 7,742 7,772 7,896 8,202 Financial & Other Assets 5,598 10,029 18,033 11,604 20,609 11,788 24,59
Slide 34: investors@happiestminds.com
investors@happiestminds.com India | United States | United Kingdom | Canada | Australia | Dubai www.happiestminds.com
Slide 35: Press Release: Industry leading sequential growth
PRESS RELEASE Happiest Minds declares Industry leading sequential growth in constant currency of 6.9%. Raises revenue guidance for FY23 to 25% and to target compounded annual growth of 25% over the next 5 years. Bengaluru, India, San Jose, California and London, July 21, 2022: Happiest Minds Technol
Slide 36: Management commentary
Ashok Soota, Executive Chairman, “We have started fiscal FY23 showing industry leading performance. Our 10-year vision statement is to be a billion-dollar Company by 2031. In line with this goal, based on the growth we are experiencing and continued demand for digital services, we are increasing our
Slide 37: Project wins, awards and analyst mentions
• For a global tech led mobility company, Happiest Minds is advising on running, managing and improving their third-party risk assessment program using next gen digital tools • For a non-profit organization in the US, this consulting led engagement entails Happiest Minds to provide discovery, assess
Slide 38: Safe harbor and contacts
Safe harbor This release 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 prosp
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