Happiest Minds' 30% Growth Strategy: Leveraging These Three Key Segments

Happiest Minds Technologies is targeting to clock a 30% revenue growth in the ongoing financial year with a push from healthcare, high tech, and Banking, Financial Services, and Insurance (BFSI) segments, the company’s management told NDTV Profit on Wednesday. 

Happiest Minds Technologies reported a revenue of Rs 627.19 crore in the October-December 2024 quarter, marking a growth of 27% year-on-year over Rs 628.35 crore in the same period last year. For the nine months ending December, the revenue grew 23.7% to Rs 1,806.51 crore.

Talking to NDTV Profit, the company’s Managing Director and Chief Financial Officer, Venkatraman Narayanan, said that they were close to the forecast of 30% revenue growth.

“In our revenue for the nine-month and three-month periods, we are very close to the forecast that we have given to the market, which is 30%. Looking into the next quarter, we have closed this acquisition of customers and customer relationships of gas technologies in the Middle East market,” he said.

“We are looking to consolidate that. The consolidation benefits should see trickling in quite early. The attempt will be to make sure that we try to reach the 30% number,” Narayanan added.

Executive Vice Chairman and Chief Executive Officer (PDES) Joseph Anantharaju said that three verticals will help Happiest Minds achieve its revenue guidance.

“In Q3, BFSI has led the way. BFSI would be an area that we would be using to really help us accelerate our revenues,” he said.

The second vertical is healthcare, which, despite being a new addition, is showing good growth, the CEO mentioned.

“Another vertical segment that has really come up well in the last year or year and a half is healthcare. We started reporting healthcare just a year back. It's already around 14-15% of our revenues,” he said.

“And high-tech, we're beginning to see some signs of at least for us, if you see again, high-tech has done well. Some of the strategies that we've been implementing are beginning to show some dividends,” Anantharaju added.

These three segments will help Happiest Minds with its revenue next quarter as well as the next financial year.

“So I would say these are three segments that we will be looking at helping us out during the quarter and probably into next year as well,” Anantharaju mentioned. 

Narayanan, however, said that clocking a 30% revenue growth will be “slightly difficult.”.

“Compared to the 30% number, we are at about 25%. And, if you look at it, in Q2 and Q3, we have done 28%. We have missed 30% by about 2%. The attempt is to make sure that we try to cover up for the gap to the best extent possible,” he said.

“But in transparency, I think touching 30% may be slightly difficult, but we will be there in terms of 27-28% in constant currency,” the MD added.

Shares of Happiest Minds Technologies Ltd. fell nearly 2% to touch an intraday low of Rs 695 on the NSE on Wednesday. The stock was down at Rs 698.50 apiece at 11:20 am, while the benchmark Nifty 50 was down 0.08% at 23,719.20 points.