homeinformation technology NewsStrong digital spends, pent up demand across verticals among key growth drivers: Happiest Minds
Strong digital spends, pent up demand across verticals among key growth drivers: Happiest Minds
Happiest Minds reports another strong quarter of earnings and the management says the demand environment is healthy. Joseph Anantharaju, Executive Vice Chairman & CEO Product Engineering Services (pes) and Venkatraman Narayanan, Managing Director and CFO of Happiest Minds spoke to CNBC-TV18.
Happiest Minds witnessed a very strong September quarter with dollar revenue growth at 8 percent. This is industry-leading growth on a quarter-on-quarter basis and a 45 percent year-on-year growth.
Joseph Anantharaju, executive vice-chairman and CEO of product engineering services at Happiest Minds pointed to three triggers for the company’s growth.
“First, if you look at the digital spend, that continues to be very strong and it is cutting across verticals, all the verticals have exhibited strong growth in the last quarter. The second element is the pent-up demand and we see that continuing to play out because customers had held back last year. We think that between the two of them, the demand will get sustained at the current levels for the next 12 to 18 months,” he told CNBC-TV18.
From a geography perspective, he said, this year the Middle East has come up really strong so that will be one of the growth drivers. Europe has shaped up quite well and there is a good build-up of pipeline, which should help sustain growth, he said. He also said that North America continues to do well, and should act as the anchor for the company’s performance and growth.
Read Here: Avoid momentum plays, bizarrely priced IPOs; bullish on IT, PSU, consumption: LIC AMC’s Ahmad
On margins, Venkatraman Narayanan, managing director and chief financial officer, said, “This quarter, we have come in at about 25.6 percent our EBITDA margin. There was a onetime cost of about 1.4 crore which was contribution under a scheme, which we had for our employees, and that added about 1.4 crore in terms of cost in this quarter. So if you adjust for that, we are back to the 26.3- 26.2 percentage EBITDA number that we have been showing the last quarter.”
He added that 22-24 percent has been some sort of guidance on the margins on a sustainable basis but the firm has been beating that for the last four-five quarters.
Also Read: Tech Mahindra expects to bring down attrition in next 2 quarters; maintain deal wins at $750mn-1bn
Speaking about deal wins, Narayanan said, 87 to 88 percent of business comes from existing customers as the company is going into depth with the existing customers.
“As far as new customers are concerned, we have been following the land and expand kind of a strategy. So we are, you can talk about what's your sweet spot, sweet spot to be a million, or a million and a half is the kind of deals that we start with. But then over a period of time, the effort has to take them up the million-dollar chain,” he said. He added average revenue per customer has also been slowly improving.
For full management commentary, watch the video.
(Edited by : Kanishka Sarkar)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Election 2024: I.N.D.I.A. bloc to hold rally at Mumbai's BKC today
May 17, 2024 5:18 PM
In Ayodhya, voters talk of a promise fulfilled and yearning for development
May 17, 2024 2:10 PM
Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 12:25 PM
Odisha: Fight of heavyweights in Sambalpur where farmers, weavers hold the key
May 17, 2024 10:22 AM