Rs 2.5 Per Share: Happiest Minds Fix Record Date For Dividends; Q2 Numbers Out, New Biz Unit For AI

IT computer-software consulting firm, Happiest Minds Technologies is in focus on Wednesday for a host of reasons. Firstly, the company has declared its Q2 numbers, while also recommending interim dividends for shareholders, and establishing a new business unit focusing on generative AI. Happiest Minds though traded on a bearish note.

At the time of writing, Happiest Minds' share price traded at Rs 839.25 apiece on BSE, down by 2.51%. The stock was near its intraday low of Rs 838 apiece. Its market cap was nearly Rs 12,777 crore.

Q2 Results:

The reason behind the drop in share price could be attributed to dull performance in the profitability of Q2FY24. Net profit in the quarter under review came in at Rs 58.46 crore, down by 1.6% YoY and also broadly flat sequentially. However, revenue from operations stood at Rs 406.62 crore, up by 14.4% YoY and 4% QoQ.

Notably, the company's EBITDA came in at Rs 104.82 crore, up by 11.1% YoY and 1.8% QoQ in the quarter.

Venkatraman N, MD & CFO, said "Our results reflect our ability to deliver industry-leading performance. Our total Income for the quarter and half year have crossed $50M and $100M respectively, while delivering higher than EBITDA guidance for the fourteenth quarter in a row. Pertinent to note is that our results incorporate above industry-average pay increases, payment of variable pay, and strong net people additions, all areas where we have seen a divergence in the approach taken by other industry participants."

Looking ahead, Ashok Soota, Executive Chairman said, "We had given revenue growth guidance for the year of 25% without making a distinction between organic and inorganic growth. Based on an assessment of market trends we are revising our revenue growth guidance for the year to 12% on an organic basis. Additional growth, if any, due to acquisition will be over and above this guidance. We retain our EBITDA guidance of 22% to 24% and remain committed to our long-term growth aspiration of becoming a billion-dollar enterprise by 2031."

Dividends Recommendation:

As per the regulatory filing, the company's board at their meeting held on October 17, 2023, has recommended an interim dividend of Rs 2.50 per equity share of face value ₹ 2/- for the financial year 2023-24.

The record date is fixed on Monday, October 30, 2023, for determining the list of equity shareholders in the Register of Members of the Company and the beneficial owners in the records of the Depositories as of the Record date who will be entitled to the Interim dividend declared for FY 2023-24.

Happiest Minds said that the dividend will be paid on and after November 13, 2023.

Generative-AI:

Just like every other IT firm, Happiest Minds has decided to tap growth in artificial intelligence (AI).

The company is establishing a business unit called Generative AI Business Services (GBS). The new unit will offer full-scale Generative AI offerings across multiple domains.

Sridhar Mantha, currently serving as the company's EVP & CTO, has been appointed as the President & CEO of GBS with immediate effect and will be reporting to Executive Board Member, Rajiv Shah.

Since its inception, Happiest Minds Technologies has been at the forefront of AI innovation, actively providing invaluable support to its clients. Recently, this support encompasses everything from consulting on Generative AI domain problems to model development and full-fledged solutions.