Happiest Minds Technologies is seeing increased demand for cybersecurity assessments, AI governance and AI security as clients continue AI deployments with added safeguards, co-chairman and chief executive Joseph Anantharaju said.
The demand is creating opportunities for the company’s Infrastructure Management and Security Services (IMSS) business unit, Anantharaju said.
“On one hand, this is really helping our IMSS business unit by giving opportunities by raising doubts and risk,” he said.
He said clients were continuing with AI implementation, but were taking precautions. “I think customers are looking at how to put guardrails and move forward with their implementation. I think they are being more careful and deliberate about how they implement AI.”
Happiest Minds reported consolidated revenue of Rs 645.43 crore for the September quarter in rupee terms, up 12.5% year-on-year and 2.7% sequentially. Revenue in constant currency grew 6.8% year-on-year and 2.4% quarter-on-quarter.
Consolidated net profit stood at Rs 62.19 crore, up 15.1% year-on-year but down 8% from the June quarter. Operating margin was 18.5%, compared with 17% a year earlier and 17.5% in the previous quarter.
Venkatraman Narayanan, managing director, said utilisation and efficiency had supported the improvement in margins. Utilisation increased to 81.8% from 80.9% in the previous quarter.
On revenue growth, Narayanan said larger deals were taking longer to close, although the company had a good pipeline. Happiest Minds is targeting double-digit growth, but he said its earlier constant-currency growth guidance of 12.5% looked difficult to achieve.
The company is seeing demand for threat and vulnerability assessments, as well as spending on AI governance and security. Anantharaju said some of this work was being added to existing engagements, while some was leading to new projects.
“We're also looking at customers talking about AI governance and AI security as an area that they're investing in. And this could either be packaged into the current offerings that you're providing, leading to enhanced engagements, or in some cases, we're having new engagements that we're starting with customers,” he said.
Clients are also seeking help with data work needed for AI adoption, including resolving data silos, integration and governance. Anantharaju said some customers were handling AI development internally but relying on Happiest Minds for data support.
