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Time of India
28-05-2025
- Business
- Time of India
Mid-tier IT cos expand GCC playbook
Bengaluru: Mid-tier IT firms are increasing their focus on the global capability centres (GCC) segment as part of a renewed strategic playbook. The shift includes targeting opportunities with enterprises establishing or expanding GCCs, leveraging cost advantages, talent pools, and client proximity. Tired of too many ads? go ad free now Mid-tier IT firms are intensifying their focus on GCCs, expanding their scope and engagement like their larger peers. Industry experts note that whilst previously they collaborated with global executives of these companies, they now engage directly with local counterparts to accelerate the tech roadmap by captives in India. Several firms strategically positioned unit leaders to provide specialised technical assistance to these captives. "Large clients in the retail or banking sector might have their own GCCs and their own best practices. Our firm can help them with this. We can tell them what their peers are doing and guide them. We can also tie up with consulting firms and provide them with industry-specific guidance. Who is going to get into the rigmarole of understanding legal and real estate requirements? We have a system set up for that. These are some of the pitches we make with captives," said Maddee Hegde, EVP, head of BPS and GCCat Coforge. These organisations are expanding into recruitment support. Hegde indicates that GCCs are increasingly receptive to recruitment assistance, an area the company is actively pursuing. Some recruits will work on Coforge's projects, while others will be directly employed by GCCs. "Smart IT services firms know what it takes and that most of these GCCs will achieve an unsustainable cost structure. Eventually, most, not all, GCCs will 'outsource' capabilities they need to be cost-effective with. Tired of too many ads? go ad free now With that in mind, consider a wide portfolio from real estate to regulatory compliance to financial services to tax, and beyond. Those early relationships will pay off with other opportunities," says Ray Wang, principal analyst and Founder at Constellation Research. Happiest Minds emphasises that skill provision is key to securing additional projects alongside regulatory and logistical support. "We do not want to become a staffing company. So, we will begin by providing skills. Many GCCs do not have a lot of skilled people in AI and data. We can bridge that gap for their immediate needs," said Joseph Anantharaju, CEO of Happiest Minds. Ashok Soota-led Happiest Minds is focusing on strengthening this vertical this year. According to Rohan Lobo, partner, GCC leader, Deloitte Asia Pacific and South Asia, 30% to 40% of GCCs in India prefer the build-operate-transfer model, creating opportunities for IT service providers. With over 5,000 GCC leaders based in India, dedicated focus on captives becomes essential, explaining the appointment of GCC heads. Lobo provides additional context regarding these partnerships' growing significance through mid and small-sized GCC statistics. He notes that 30% of last year's captive establishments were in the sub $1 billion category. "These companies need end-to-end services to stand up their centres quickly and realise their ROI. Such services include registration and legal, real estate, tax and compliance requirements, leadership hiring, relevant talent, infrastructure, etc. IT services providers and consulting firms, together with specialist partners in the ecosystem, work closely with these GCCs and play a vital role. Companies across the world are turning to partners to quickly help navigate complexities and get things done," Lobo said.
New Indian Express
14-05-2025
- Business
- New Indian Express
Happiest Minds eyes double-digit organic growth in FY26
BENGALURU: Mid-tier IT services company Happiest Minds, which reported a 53% decline in its consolidated net profit for the fourth quarter ended March 2025, expects double-digit growth in FY26, driven by its BFSI and healthcare verticals, and it aims to maintain the same 20-22% of EBITDA and about 16-16.5% to 17.5 or 18% of operating margin. The company posted a 53% decline in its consolidated net profit for the last quarter at Rs 34 crore as against the year-ago period's Rs 72 crore. Its revenue in the fourth quarter stood at Rs 545 crore, a 30.5% increase compared to Rs 417 crore in the same quarter last year, mainly driven by strong deal closures. In FY25, the company's revenue stood at Rs 2,061 crore compared to Rs 1,625 crore in FY24, a 26.8% growth. "Operating margin for the fourth quarter was at 14.6% compared to 17.5% in the previous quarter. We have been maintaining at 17+% over the year, but it came to 14.6% because of an unfortunate bad debt of Rs 12.5 crore that we took a hit for this quarter," Venkatraman Narayanan, MD & CFO, told TNIE. Its operating margin was at around 17.3% in FY25. Narayanan said that Rs 40 crore investments have been made into the business of AI and a new sales team that have been put in place by the company. Last year, the company acquired US-based Aureus Tech Systems for $8.5 million and PureSoftware Technologies for Rs 779 crore. "Our acquired companies are actually doing much better than what we had expected," he said. Joseph Anantharaju, Co-Chairman & CEO told TNIE that they are expecting BFSI and healthcare to drive growth. In Q4FY25, the company's BFSI vertical contributed 26.5% to its total revenues, followed by edutech at 17% and healthcare at 15.6%.
Time of India
13-05-2025
- Business
- Time of India
Happiest Minds' net profit halved in Q4 on major client default
Live Events IT services firm Happiest Minds Technologies on Tuesday reported a 32.1% on-quarter decline in net profit for Q4 FY25 to Rs 34 crore, which nearly halved compared to the fourth quarter of the previous fiscal, impacted by exceptional items on account of investments and recent acquisitions as well as a client for the January-March period grew 0.3% on-quarter and 25.6% on-year and stood at Rs 629 margins dipped from 24.5% to 14.6% on-year basis due to a Rs 12.5 crore write-off linked to a North America-based client who failed to meet payment obligations, Venkatraman Narayanan, MD and CFO, Happiest Minds told ET. However, it was purely bad debt and not related to ongoing macroeconomic factors, he clarified.'Despite the setback, we've managed to deliver stable performance. Our adjusted PAT has grown Rs 50 crore and EBITDA by Rs 100 crore year-over-year,' Narayanan said, adding that the company had invested Rs 40 crore into its new GenAI-focused business unit, which also contributed to the margin Minds' stock fell 2.59% to close at Rs 593.60 per share on the BSE company is hoping to grow with generative AI and improving macroeconomic conditions, as it looks to rebound from a tough fourth quarter impacted by a client default and sectoral Anantharaju, co-chairman and CEO said that the overall sentiment is now improving with global trade tensions easing and geopolitical risks subsiding. 'We are holding on to our guidance of double-digit revenue growth for FY26. Sentiment is definitely turning positive,' he said, noting that sectors like BFSI and healthcare are seeing renewed traction, while the high-tech vertical is stabilising post-client noted that GenAI is transitioning from proof-of-concept to full-scale deployment. 'Clients are moving from just slapping on a GenAI interface to rethinking their entire application architecture around GenAI,' he said. The company is now working on agentic AI models as well. 'We're seeing 10–25% productivity gains across software development and testing lifecycles,' he AI's impact on workforce, the company said most clients are using productivity improvements to accelerate roadmaps rather than cut costs. 'We haven't seen any client ramp-downs due to AI,' Anantharaju hiring, Happiest Minds is taking a calibrated approach. While it skipped campus hiring last year, it plans to return to campuses in the coming cycle, albeit with smaller intake. Wage hikes are still planned for July, although the final quantum will be determined closer to rollout.
News18
13-05-2025
- Business
- News18
Dividend Stock: BSE 500 IT Share Fixes Record Date For 175% Final Dividend Of FY25
Last Updated: Happiest Minds Technologies reported that its total income for the Q4 FY25 grew 28 per cent YoY to Rs 57,052 lakh. Dividend Stock: Happiest Minds Technologies has fixed the record day of Friday, July 18, 2025 for the final dividend of Rs 3.50 per equity share for the financial year 2024-25. It is subject to the approval of the shareholders at the ensuing 14th Annual General Meeting (AGM) of the company. Record date helps for r 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 on the Record Date who will be entitled to the Final dividend declared for FY 2024-25. Happiest Minds Q4 Results Happiest Minds Technologies reported that its total income for the Q4 FY25 grew 28 per cent YoY to Rs 57,052 lakh, with EBITDA up 19.3 per cent to Rs 10,984 lakhs. EBITDA declined 6% QoQ on account of an unfortunate bad debt of Rs 1,204 lakhs while growing 1.5 per cent YoY. PAT stood at Rs 3,401 lakhs. Looking at the year ended March 31, 2025, operating revenues at $ 243.36 million, registering a growth of 24.2 per cent. Total income of Rs 216,222 lakhs with a jump of 26.4 per cent. EBITDA of Rs 46,224 lakhs, 21.4 per cent. PAT for the year ended March 31, 2025 stood at Rs 18,466 lakhs with a gain of 8.5% from the previous fiscal year. Adjusted EPS stood at Rs 16.37. digital transformation for enterprises and technology providers by delivering seamless customer experiences, business efficiency and actionable insights. It is done this by leveraging a spectrum of disruptive technologies such as: artificial intelligence, blockchain, cloud, digital process automation, internet of things, robotics/drones, security, virtual/ augmented reality, etc. First Published: May 13, 2025, 12:36 IST
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Business Standard
13-05-2025
- Business
- Business Standard
Happiest Minds Technologies Q4 results: Net profit drops 53% to Rs 34 crore
Mid-cap Indian IT firm Happiest Minds Technologies has reported a 52.7 per cent decline in consolidated net profit to Rs 34 crore in the March-ended quarter. It had posted a profit of Rs 71.9 crore in the year-ago period, according to a regulatory filing. Revenue for the quarter under review rose 30.5 per cent to Rs 544.5 crore, compared with Rs 417.2 crore in Q4 FY24. Sequentially, profit dropped 32 per cent, while revenue rose 2.5 per cent. The firm added 14 new clients in Q4, bringing the tally to 281. For full FY25, the Bengaluru-headquartered firm logged a profit of Rs 184.6 crore, a 25.6 per cent dip from Rs 248.3 per cent in FY24. Revenue in FY25 was recorded 26.8 per cent higher at 2,060.8 crore. The company, in March, announced a slew of apex-level changes in its organisation structure with immediate effect. As part of the rejig, Executive Vice Chairman Joseph Anantharaju was elevated to Co-Chairman and CEO, while Chairman Ashok Soota took up an additional position as the Chief Mentor of the company. "Our strategic initiatives, along with the continued commitment of our teams, have us well positioned for strong double-digit organic growth in FY26 and beyond. Economists are projecting a slowdown in some of our largest markets, I want to emphasise that we have healthy pipelines of demand and do not see any recession-driven slowdown," Soota said. The Chairman in March had exuded confidence about the firm delivering a healthy double-digit organic growth, not just in FY26 but also in FY27. "The year FY25 is witnessing flat growth for some majors and negative growth for a few others. We have delivered a healthy double-digit growth, albeit most of it is inorganic. The market is predicting a US slowdown or recession. This has clouded the prospects for the Indian IT industry. "We want to state emphatically that at Happiest Minds, we see no recession-driven see a good view ahead for the next two years," he had asserted. The company's Board has recommended a final dividend of Rs 3.5 per equity share of face value Rs 2 for FY25. Happiest Minds Technologies offers digital transformation, product engineering, and infrastructure management services. It has 6,632 employees across 13 countries.
