Happiest Minds down as Q2 net profit takes a knock

Happiest Minds Technologies board approved the establishment of Generative AI Business Services

Happiest Minds shares fell more than 2 percent on October 18 after the company's consolidated profit for the September quarter fell 1.6 percent to Rs 58.46 crore from the year-ago period. The revenue, however, jumped 19.3 YoY to Rs 428.83 crore.

The information technology firm also fixed October 30 as the record date for the Rs 2.5 interim dividend declared for FY23. The dividend would be paid on and after November 13, the company said in a regulatory filing.

Follow our market blog to catch all the live action

Happiest Minds Technologies sees FY24 organic growth at 12 percent compared to 15-20 percent expected at the start of 2023. CC revenue growth in the next two quarters is expected to be in line with Q2 FY24, Executive Vice Chairman & CEO – Product Engineering Services, Joseph Anantharaju told CNBC-TV18.

The company is engaged with two firms for mergers and acquisitions (M&A). Happiest Minds has 2-3 good acquisition candidates in the pipeline, Anantharaju said, adding that there have been no deal cancellations or clients asking for pricing discounts. The IT firm sees interest in adopting Generative AI to optimise processes and generate new revenue.

Along with its quarterly earnings, Happiest Minds Technologies board also announced a foray into Generative AI Business Services (GBS). This latest business unit will offer full-scale generative artificial intelligence offerings across multiple domains.

The company also announced a product and digital engineering services (PDES) business unit, which will combine the firm's product engineering services (PES) and digital business services (DBS) units.

Also Read | Happiest Minds debuts in generative AI space with PDES unit

Happiest Minds has underperformed Nifty in 2023, falling 4.5 percent against an 8 percent rise in the benchmark index. In the last year, Happiest Minds stock has tanked over 14 percent.

At 10.15 am, Happiest Minds were trading at Rs 843.6o on the National Stock Exchange (NSE), down 2 percent from the previous close.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.