Happiest Minds Technologies Ltd Q1FY22 consolidated net profit lower at Rs. 35.73 crore

Happiest Minds Technologies Ltd has reported financial results for the period ended June 30, 2021.

Financial Results (Q1 FY2021-22) - QoQ Comparison

The company has reported total income of Rs.253.87 crores during the period ended June 30, 2021 as compared to Rs.223.74 crores during the period ended March 31, 2021.

The company has posted net profit / (loss) of Rs.35.73 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.36.05 crores for the period ended March 31, 2021.

The company has reported EPS of Rs.2.45 for the period ended June 30, 2021 as compared to Rs.2.48 for the period ended March 31, 2021.

Financials	Q1 FY2021-22	Q4 FY2020-21	% Change
Total Income	₹ 253.87 crs	₹ 223.74 crs	13.47%
Net Profit	₹ 35.73 crs	₹ 36.05 crs	-0.89%
EPS	₹ 2.45	₹ 2.48	-1.21%

Financial Results (Q1 FY2021-22) - YoY Comparison

The company has reported total income of Rs.253.87 crores during the period ended June 30, 2021 as compared to Rs.186.99 crores during the period ended June 30, 2020.

The company has posted net profit / (loss) of Rs.35.73 crores for the period ended June 30, 2021 as against net profit / (loss) of Rs.50.18 crores for the period ended June 30, 2020.

The company has reported EPS of Rs.2.45 for the period ended June 30, 2021 as compared to Rs.3.72 for the period ended June 30, 2020.

Financials	Q1 FY2021-22	Q1 FY2020-21	% Change
Total Income	₹ 253.87 crs	₹ 186.99 crs	35.77%
Net Profit	₹ 35.73 crs	₹ 50.18 crs	-28.8%
EPS	₹ 2.45	₹ 3.72	-34.14%

Joseph Anantharaju, Executive Vice Chairman, Happiest Minds Technologies said, "With our positioning in the market as a go to digital partner and the demand environment remaining buoyant, we have been able to record a good performance in this quarter. Our net headcount addition was strong as we onboarded 310 Happiest Minds, which reflects our ability to attract and retain good talent with our compelling people engagement programs".

Venkatraman N, MD & CFO, Happiest Minds Technologies talking on the financials said, "We have begun the fiscal on a solid footing with good growth and performance. Our operations and delivery remain resilient in the face of supply side pressures and the pandemic situation. Our financials this quarter has an exceptional expense on account of fair valuation of warrant liability in our balance sheet. The original liability represented the probable future payout obligation basis growth and profitability of PGS Inc. Fair valuation of the original liability basis performance of the acquired asset, and changes, either debit or credit, must be routed through the P&L. Basis increasing probability of payout on account of performance, we have fair revalued the liability leading to an exceptional expense of ₹ 6.1 Crores.

Our improving profitability means higher effective income-tax. Compared to the same quarter previous year wherein we had a significant tax credit by accounting for 'deferred tax asset', this quarter we have a full charge or expenses in line with our profits.

Separately, I am happy to state that we have been able to settle an earlier reported employee discrimination suit in the US leading to a credit to our P&L of ₹ 2 Crores".

Ram Mohan, Member of the Executive Board, Happiest Minds Technologies said, "Enterprises are rapidly scaling up their digital infrastructure through their Core Transformation, Everything-on-Cloud and Cloud Migration initiatives. Our quarterly results validate the commitment to our clients as we help them build and create seamless digital experiences across multiple channels."

Source : Equity Bulls

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