BENGALURU: Mid-tier IT services company Happiest Minds, which has posted a 12% y-o-y increase in its net profit at Rs 57 crore and 18.5% growth in revenues from operations at Rs 550 crore in the June quarter, expects to sustain double-digit growth for the year.
Venkatraman Narayanan, Managing Director, Happiest Minds, told TNIE, "We had said that we'll do double digit growth for the current year and the quarter growth does set us on that path. Our generative AI business is beginning to break even, the new sales engine into which we were making investments along with generative AI has started its payback."
He also added that Gen AI is contributing about 2.4% of the company's total revenues.
"Gen AI is becoming all-pervasive and it is there in every project we do. At least if we're not doing something right now, there are conversations which are happening. It is moved from POC (proof of concept) to production, longer-term projects and larger value projects," he added.
It has reported EBITDA of Rs 124 crore at 21.4% in Q1.
The company's attrition rate has increased to 18.2% in Q1 from 16.6% in the previous quarter. For the past few quarters, attrition rates have risen for IT firms and when asked about it, Joseph Anantharaju, Co-Chairman & CEO, told TNIE that companies that have a lot of digital and AI talent will be hit more because those are skills in demand. It's a matter of people moving around or moving to GCCs (Global capability centres).
He also said that companies are being a little more stringent in their appraisal and evaluation process. "The other reason is I think there's less tolerance for having people who are not building for some time, who you've tried training and upskilling and earlier you may have said that they will give some more time and chance. Now there'll be less tolerance for this," he added.
Regarding the hiring of freshers, he said that they don't plan to go to campus this year. As of June 30, 2025, its total headcount stood at 6,523 employees, and its utilization has increased to 78.9% from 77.3% in the last quarter.
Ashok Soota, Chairman & Chief Mentor, said, “With a sharp focus on mindful execution, customer-centricity, and technology leadership, we are well-positioned to sustain double-digit growth for the year and have laid a foundation for achieving three consecutive years of double-digit growth.”