Happiest Minds Technolgies Archives

Here are some of the major updates that could move the markets tomorrow:

IndusInd Bank Q1 Results: Net profit jumps 32.5% YoY to Rs 2,123 crore

IndusInd Bank reported a 32.5% YoY jump in net profit to ₹2,123.6 crore for the quarter ended June (Q1 FY24). The total income for the quarter increased 28% YoY to ₹12,939 crore. The net interest income (NII) rose 18% YoY to ₹4,867 crore during the same period. The bank’s gross non-performing asset (NPA) declined to 1.94% against 2.35% in Q1 FY23.

In other news, IndusInd Bank will consider fundraising via debt securities on July 20.

Read more here.

Infosys signs $2 billion AI deal with existing strategic client

Infosys entered into a framework agreement with one of its existing strategic clients to provide artificial intelligence and automation-led development. Infosys revealed that the agreement will also entail modernization and maintenance of services. It is expected to come with a total client spend target of around $2 billion in the next five years. Infosys announced a new platform in May called Infosys Topaz that offers a combination of data analytics and generative AI.

Read more here.

Rama Steel Tubes announces strategic tie-up with JSW Steel

Rama Steel Tubes Ltd (RTSL) announced a strategic partnership with JSW Steel. RSTL has entered into a strategic memorandum of understanding (MoU) with the JSW Steel Group. The MoU is for the procurement of hot rolled coils (HRC), distribution of HRC and production of a value-added product in the western region. Under the tie-up, RSTL will purchase 1,00,000 tonnes of HRC from JSW Steel on a pan-India basis.

Read more here.

LTTS Q1 Results: Net profit jumps 13% YoY to Rs 311 crore

L&T Technology Services reported a 13% YoY increase in net profit to ₹311 crore in Q1 FY24. Net profit stood at ₹275 crore last year. Its total revenue rose 15% YoY to ₹2,301 crore. The company was able to close a $50 million plus deal and 5 additional deals of $10 million plus each across segments in the first quarter. The company’s EBIT margin stood at 17.2% in Q1.

Read more here.

Happiest Minds Technologies raises Rs 500 crore via QIP

Happiest Minds Technologies has successfully raised ₹500 crore ($61 million) through a Qualified Institutions Placement (QIP) of equity shares. The issue attracted a robust response from institutional investors. This was the first-ever equity capital raised by the company after its initial public offering (IPO) in 2020. The company’s board had approved the allotment of 54.11 lakh equity shares of face value ₹2 to eligible investors at a price ₹924 per share.

Read more here.

Piramal Pharma gets SEBI’s approval to raise ₹1,050 crore

The Securities Exchange Board of India (SEBI) has approved Piramal Pharma to raise to ₹1,050 crore through the rights issue of shares. The pharma company submitted the draft papers in March and obtained an observation letter from SEBI on 12 July. The company will utilise the amount for the payment of debt and general corporate purposes.

Read more here.

Polycab India Q1 Results: Net Profit up 82% YoY to Rs 189 cr

Polycab India reported an 82% YoY increase in consolidated net profit to ₹399 crore in Q1 FY24. Its revenue stood at ₹3,889 crore, up 42% YoY in Q1. The company’s EBITDA also rose 76% YoY to ₹549 crore. The wires and cables segment revenues are 47% higher year on year at ₹3,534 crore, while the fast-moving electrical goods (FMEG) segment is marginally higher at ₹315 crore.

Read more here.

Godrej Agrovet receives an allotment of 47,000 acres of land in Telangana

Godrej Agrovet has been allotted a potential 47,000 acres in Telangana for its Oil Palm business. Telangana Government’s Department of Agriculture and Cooperation allotted the land. The land shall be used by Godrej Agrovet to expand its Oil Palm cultivation business. The company will also utilise the land for setting up Oil Palm processing units.

Read more here.

Federal Bank subsidiary FedFina revives IPO plans via fresh issue, OFS

Federal Bank’s subsidiary Fedbank Financial Services Ltd (FedFina) will consider a proposal for an Initial Public Offering (IPO) at its board meeting on Monday, July 17. FedFina’s IPO will be undertaken through a combination of a fresh issue and an Offer for Sale, subject to market conditions, receipt of applicable approvals. The company will intimate the size of the IPO, portion of the Offer for Sale, price, and other details in due course after finalisation of the same in consultation with the book-running lead managers.

Read more here.

A mid-cap IT company has given stellar returns to its investors ever since its listing in September last year. It had recently posted remarkable growth in earnings as well. They have turned out to be one of the fastest-growing companies in the highly competitive IT industry in India. We are talking about Happiest Minds Technologies. In this article, learn more about the company and its recent performance.

Company Profile – Happiest Minds Technologies

Happiest Minds Technologies Limited is a leading IT solutions and services provider based in Bengaluru. It is a relatively young company (established in 2011), and its shares were listed on the stock exchanges in September 2020. They primarily operate through three segments:

Infrastructure Management & Security Services (IMSS) – This segment provides cyber and infrastructure security, risk and compliance, data privacy, access management, and threat & vulnerability management services. The infrastructure management services provided by the firm include hybrid cloud services, workspace services, service automation, and software-defined infrastructure services.

Digital Business Solutions (DBS) – This segment offers enterprise applications and customised solutions that include advisory, design & architecture, custom-app development services. It also comprises package implementation, testing, and ongoing support services to IT initiatives.

Product Engineering Services (PES) – The segment assists software product companies in building products and services that integrate mobile, cloud, and social technologies. Happiest Minds also provides Internet of Things (IoT) solutions, consisting of digital strategy creation consultation, end-to-end system integration on IoT platforms, IoT security and managed services, and implementation of IoT roadmaps.

Other Offerings

Apart from these three verticals, Happiest Minds offers analytics/artificial intelligence (AI) solutions, including the implementation of advanced analytics using AI, machine learning, and statistical models. They also provide digital process automation solutions, such as robotic process automation and intelligent business process management (BPM).

The IT company offers its services across India, the United States, Canada, the United Kingdom, Australia, and the Middle East. Over the years, they have partnered with major players such as Google, Microsoft, Amazon Web Services (AWS), and Salesforce. By leveraging these partnerships, the firm has been able to secure large orders. As of March 31, 2021 (FY21), they have a total of 173 clients spread across the Banking, Financial Services & Insurance (BFSI), Edutech, Retail, Manufacturing, and Travel, Media & Entertainment sectors.

Ashok Soota, widely recognised as one of the pioneering leaders of the Indian IT industry, is the Executive Chairman and Promoter of Happiest Minds. [He previously led Wipro’s IT business for around 15 years and was a driving force behind its exponential growth]. Moreover, Happiest Minds is considered one of the best places to work in India. They have also launched corporate social responsibility (CSR) initiatives that support poorer sections of society.

Financial Performance

Similar to most companies in the Indian IT & ITeS sector, Happiest Minds has posted a phenomenal increase in its revenue and profits over the past few years. More businesses and even government entities are being forced to adopt digital transformation practices to improve efficiency and cut costs. There has been an increase in demand for the services and products of IT firms, especially amidst the Covid-19 pandemic.

Happiest Minds reported a 580.19% year-on-year (YoY) jump in consolidated net profit to Rs 36.05 crore for the quarter ended March (Q4 FY21). However, net profit had declined by 14.47% when compared to the previous quarter (Q3 FY21). Its total income in Q4 stood at Rs 223.74 crore, up 17.64% YoY and 11.16% on a quarterly basis.

Net profit for the full financial year 2020-21 (FY21) jumped 126.55% YoY to Rs 162.46 crore. The company’s total income rose 11.68% YoY to Rs 797.65 crore in FY21. They have reported an Earnings Per Share (EPS) of Rs 11.45 in FY21, a 113.6% jump over FY20. The attrition rate declined from 18.7% in FY20 to 12.4% in FY21, which is a great sign that shows increased job satisfaction amongst employees.

Over the past five years, its revenue has grown at an amazing CAGR of 20.93%, whereas the industry average stood at just 9.78%. EBITDA has grown at a CAGR of 205% between FY18-FY21! However, Happiest Minds has only been able to secure a market share of 0.14%. As we all know, the level of competition in the IT services industry is extremely high. Overall, the fundamentals of the firm look very strong.

The Way Ahead

In March 2021, Happiest Minds announced a change in its shareholding structure. Most of Ashok Soota’s shareholding (~53%) will go into a holding trust and a medical research trust. However, there will not be any decline in total promoter holding. The IT firm has also indicated that it will continue with the Executive Board (EB) structure. Currently, the EB structure consists of three executives under each business segment (instead of a single Chief Executive Officer). This arrangement has proved to work in their favour for years.

The company has targeted an organic revenue growth of 20% for the current financial year (FY22). Its management has stated that the growth will exceed its medium-term target in FY22 due to a series of acquisitions. In February 2021, they had completed the acquisition of US-based Pimcore Global Services for $8.25 million (~Rs 61 crore). PGS is a leading digital e-commerce and data management solutions firm. It will continue to focus on partnering with leading industry players and improve its offerings across key business segments. Happiest Minds plans to announce its vision for the next decade (2021-2031) before its 10th anniversary on August 29.

Since its listing in Sept 2020, the shares of Happiest Minds Tech have rallied by ~160%! The strong fundamentals of the company and its future growth prospects could continue to drive up stock prices in the years to come.

Have you invested in the company? Let us know your views on Happiest Minds in the comments section of the marketfeed app.