Happiest Minds profit dips 15.3% on salary hikes, investments
Happiest Minds Technologies reported a 15.3% year-on-year (YoY) fall in net profit at Rs 49.5 crore for the September quarter (from Rs 58.5 crore a year ago) dented by higher investment costs during the quarter. Sequentially, the profit fell 3% from the first quarter’s Rs 51 crore profit.
Revenue for the second quarter jumped 28.3% YoY and 12.5% quarter-on-quarter (QoQ) to Rs 521.64 crore.
The drop in profit was primarily due to salary increments for most of its employees rolled out from July 1, impacting 2.30% of its profitability, the addition investments towards its new sales team and into its GenAI business.
“For the quarter, the GenAI investment was between Rs 9-10 crore. Cumulatively, between last quarter and this quarter, we have made an investment of about $2 million (around Rs 16 crore),” said Venkatraman Narayanan, MD & CFO at Happiest Minds Technologies.
Ashok Soota, executive chairman, said, “These changes include the acquisition of PureSoftware and Aureus, the creation of our GenAI Business Unit (GBS), hiring a senior leader to expand net new sales, and creating six industry groups, each headed by manager. The full impact of all these changes on revenue and growth will become visible in the quarters ahead.”
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