Happiest Minds on a strong wicket for robust growth in FY24
Bengaluru-headquartered mid-tier IT firm offering services in core digital area rather than on discretionary spending segment; It puts the company in good stead at a time when clients are cutting down spend on discretional digital space
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Bengaluru: Mid-tier IT firm Happiest Minds Technologies is likely to sustain its growth momentum in the current financial year despite its competitors in the product engineering space including EPAM, Globant, Endava losing the steam.
According to industry insiders and brokerage firms, service offerings in the core digital area rather than on discretionary spending segment puts the company in good stead at a time when clients are cutting down spend on discretional digital space. Moreover, diversified vertical exposure also gives the company the scope to escape the risks arising out of concentration of clients.
Happiest Minds is having almost 100 per cent of its revenue derived from digital solutions and technologies, which are core and critical to either generate revenue or drive operations for its clients. This work which the company does is largely non-discretionary in nature and positions it in a sweet spot compared to its competitors like EPAM, Endava, and Globant among others in current weak macro environment where discretionary tech budgets are under pressure,” ICICI Securities wrote in a note.
The Bengaluru-headquartered mid-tier IT firm has guided for 25 per cent growth in its revenue in constant currency term in FY24. The company also plans to add 1,300 employees in the ongoing fiscal year, one of the highest among mid-tier peers.
Last year, EPAM reportedly fired around 100 employees last year owing to low demand in the product engineering space across the world.
“Happiest Minds does not do content creation work for edutech clients, which is likely to be impacted by generative AI. HM helps edutech clients in creating platforms, introducing new features and maintaining their core educational platforms, which is the sole means for the clients for engaging and serving their end-consumers.
The company believes that personalisation of experience will be much better with generative AI, and is working with edutech customers to leverage ChatGPT,” ICICI Securities said.
