Strong topline and bottom-line growth, margins were flat sequentially, although attrition increased | Happiest Mind Q4 FY22 Conference Call Highlights2 min read
- Q4FY22: Sales rose 36.18% to Rs 300.57 Cr in Q4FY22 as against Rs 220.71 Cr in Q4FY21.
- Net profit up 44.5% to Rs 52.11 Cr in the quarter ended March 2022 as against Rs 36 Cr during the previous quarter ended March 2021.
- FY22: Sales rose 41.41% to Rs 1093.65 Cr in FY22 as against Rs 773.41 Cr in FY21. Net profit rose 11.54% to Rs 181.20 Cr in FY22 against Rs 162.46 Cr in FY21.
- EBITDA and EBIT margins for FY22 are 26.1%, 23.2% respectively. Flat margins on QoQ basis i.e Q3 over Q4FY22. In spite of increasing attrition margins were flat, aided by forex gains, revenue recognition time, price increases in some contracts.
- 85% of the revenues are from repeat clients.
- (Last 12 months) LTM Attrition increased from 21.1% to 22.7% in Q4FY22.
- 95.9% of employees are offshore. By revenues 85.7% in offshore, rest is onsite.
- Revenue mix consists of Edutech (23.6%), Hitech (16.7%), BFSI (13.7%), Travel, Media & Entertainment (13.7%), Retail, Consumer Products (10.1%), Industrial (6.6%), Manufacturing (10.1%), Others (5.4%).
- ROE: 27.3 and ROCE: 39.8 for FY22.
- Company’s 10-year vision of generating 1 billion USD revenues by 2031 through both organic and inorganic means.
- Sustainable EBITDA margins for the company is 22-24%.
- Subcontracting costs as a percentage of revenues were 12.2% in Q4FY22 as compared to 12% in Q3FY22.
- Healthcare has become a major component of others category, hence from next quarter will be reported separately.
- Hire 500+ people in FY23. Added 167 people during the quarter. Total employee strength is 4,168.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell stocks or MF.