Happiest Minds Technologies has announced its Q1 results for the fiscal year, revealing a notable 18.66% year-on-year increase in revenue. However, this growth comes with a downside as the company's profit experienced a significant decrease of 12.52% compared to the same quarter last year.
Despite the robust revenue growth, the company's profit margins faced pressure, attributed to a 14.12% rise in Selling, General & Administrative (SG&A) expenses quarter-on-quarter and a 27.37% increase year-on-year. Consequently, operating income fell by 22.73% quarter-on-quarter and 16.37% year-on-year, indicating challenges in maintaining operational efficiency amid rising costs.
The Earnings Per Share (EPS) for Q1 stood at ₹3.39, marking a 15.67% decline year-on-year. This decline further highlights the profitability challenges faced by Happiest Minds Technologies during this period. The company's stock performance has also reflected investor sentiment, with a -0.17% return in the last week and a -13.77% year-to-date return.
Despite these challenges, there remains a cautious optimism among analysts, with 3 out of 4 recommending a Buy rating, suggesting a belief in the company's long-term potential. With a market capitalization of ₹11,555.08 crore, Happiest Minds Technologies continues to navigate a volatile market landscape.