‘Acquisitions delayed due to macros’
New Delhi: Multiple acquisitions, which were a part of information technology (IT) services firm Happiest Minds’ initial revenue growth guidance for FY24, are now expected to be closed by the end of this fiscal or early next—leading to the firm revising its growth guidance for the year. In an interview with Mint, Joseph Anantharaju, executive vice-chairman, and Venkatraman Narayanan, managing director and chief financial officer of Happiest Minds, added that the delay in acquisitions were the largest reasons for the revenue growth guidance revision—with the rest being attributed to slower overall growth opportunities in the first half of the year.
“The 25% revenue growth guidance included both organic and inorganic growth opportunities. When we started this fiscal, we had a couple of acquisition opportunities.
This included a relatively large acquisition, which was taken into account when we gave the initial guidance. If we’re to break down that initial guidance, our organic growth target would have been between 15-20%—and the acquisition would have accounted for the rest," Narayanan said.
He further said the acquisitions have “now been stalled due to internal conversation regarding the prevalent macroeconomic market conditions within that company." “This stalling is due to conversations on valuation depending on how long and in what market situation a deal is closed in. These deals may now close towards the end of the year, or even in the first quarter of the next fiscal, which has played a part in our overall revenue growth guidance revision for this fiscal down to 12%," he added.
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