Happiest minds Q2 net profit rises 15% as AI uncertainty weighs
Happiest Minds Technologies reported a 15.1% increase in net profit for the September quarter compared to the previous year. While revenue grew by 12.5% year-on-year, it reflects ongoing concerns over client decision-making related to artificial intelligence. The companys managing director noted the challenges of longer sales cycles and uncertain customer investments in AI solutions. Despite a relatively good demand scenario, they are still behind their revenue growth target.
Bengaluru: Happiest Minds Technologies reported a 15.1% year-on-year rise in net profit to ₹62.1 crore for the September quarter, even as slower client decision-making amid uncertainty over artificial intelligence (AI) weighed on its performance. Sequentially, it contracted 8%.
The small-tier IT services provider posted a revenue of ₹645.4 crore for the second quarter, up 12.5% YoY and 2.7% quarter-on-quarter.
Read more: MCX Q2 Results: Profit rockets 130% YoY to Rs 455 crore, revenue jumps 114%
In constant currency terms, the topline grew 6.8% year-on-year.
Venkatraman Narayanan, managing director of Happiest Minds, said the company is behind its target of 12.5% constant-currency revenue growth even as the demand scenario looks relatively good.
Read more: NSE Q2 Results: Profit jumps 23% to Rs 2,578 crore, revenue rises 9%
"The sales cycles are long, decision-making is slow, and the environment is not helping things," he told ET in a post-earnings interaction. "One of the questions customers are asking is: if I spend this money, will AI come and disrupt it? If I wait longer, will I get a better solution with AI?"
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