1/ Happiest Minds completes its 10 years of business: They have 13Kcrs in just a short span of time 🤯
Starts with the COVID 2.0 impact on the company: 8% of the team was tested +ve by 17th May, 26% of which were hospitalized.
Led to the terrible loss of 5 young men.
2/ Coming to the wins:
- Employee culture has been the biggest investment as per the chairman Mr. Ashok Soota
- Customer retention: One CFO has been a customer with the 3 companies he worked with ( Power of 💪relationships)
- Invested in all new technologies including next gen.
3/ Did you know? IP-led services (High margin & High operating leverage) account for 10% of their revenues.
Restructured the three business units (PES, DBS, IMSS) such that each caters to their specific high potential industries 🚀
4/ Talks about their Vision 2021-2031: How most businesses survive less than a half-lifetime of humans
This wouldn't be the case for Happiest minds as it is being 'designed for perpetuity': addressed succession risks
Guidance: 20% organic growth+ Lower PAT due to higher tax
5/ Company in numbers:
12% Rev growth YoY, 27% EBITDA margin
Strong Cashflows
80% Employee utilization & 12% utilisation
3228 employees (added 562 in FY21)
Active customers of 173 (46 of which are Billion $ corps) | 87% repeat business
Promoter Holding of 53% 🤝
6/ Enterprises in a post-pandemic world will align themselves along 3 technology themes:
- People Centricity: Behavioral patterns
- Location Independence: distributed cloud, cybersecurity.
- Resilient Delivery: AI engineering, Hyper Automation
97% of revenues from digital 🧑💻
7/ Their offerings in brief & the Industries they serve: Edutech, Hitech & BFSI contribute 60% of revenue.
Client concentration risk remains: Top 5 contribute a third of the revenues.
8/ Not just saying Happiest employees for the sake of it: Glassdoor rating of 4.3
Competitive advantage: Avg Age of our active Full-time members is 32 years.
Perks to the employees are innumerous (included mindfulness training 🧘)
9/ M&A activity: Acquiring capabilities
Acquired Pimcore Global Services, USA-based digital e-commerce, and data management solutions company for US $8.25 million cash.
Highly value accretive as the acquisition happened at less than 0.8 times sales & HM trades at 17x sales.
10/ Finally, Risks being monitored (+60% of the noncurrent assets are intangible: common in next-gen IT cos.)
A company to watch out for in the next generation of IT leaders.
End of Thread.