Happiest Minds Technologies reports mixed financial results for Q2 FY25

Happiest Minds Technologies, a midcap IT software company, recently declared its financial results for the quarter ending September 2024. The company has received a ‘Sell’ call from MarketsMOJO, indicating a negative performance for the quarter.

However, there are some positive aspects to Happiest Minds’ financials. The company has shown a consistent growth in its operating cash flow, with the highest annual amount of Rs 212.56 crore in the last three years. The net sales have also been on a steady rise, with the highest quarterly amount of Rs 521.64 crore and a positive trend in the last five quarters. The company has also been distributing a higher proportion of its profits as dividends, with a dividend payout ratio of 34.57%.

On the other hand, there are some areas of concern for Happiest Minds. The profit before tax (PBT) has fallen by -23.7% compared to the average of the previous four quarters, indicating a negative trend. The interest cost has also increased by 41.15% quarter on quarter, which could be a result of increased borrowings. The company’s ability to manage interest payments has also deteriorated, with the lowest operating profit to interest ratio in the last five quarters.

The company’s profitability has also taken a hit, with a -14.1% decline in the profit after tax (PAT) compared to the average of the previous four quarters. The earnings per share (EPS) have also decreased, with the lowest amount of Rs 3.31 in the last five quarters. Additionally, the company’s income from non-business activities is high, which may not be a sustainable business model.

Overall, Happiest Minds Technologies has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to its financials, there are also some areas of concern that need to be addressed. Investors should carefully evaluate the company’s performance before making any investment decisions.