Happiest Minds Technologies Ltd Q2 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Sumeet Jain - ICICI Securities - Analyst : Yeah, hi. Thanks for the opportunity. You know, just want to probe on your guidance. So actually, I mean, if I look at your 12% organic growth guidance for FY24, that does imply a CQGR of around 5% to 6% for the second half of FY24. So just want to understand what gives you confidence of a sharp revival in growth in second half, given overall weak macro environment from the discretionary spend perspective.

Question: Sumeet Jain - ICICI Securities - Analyst : Yeah, yeah. So basically, I mean, I just wanted to understand your guidance of 12% organic growth in FY24. It does imply a close to 6% CQGR for second half of FY24, which is obviously a sharp revival of growth what you are assuming. So just want to understand what is giving you that confidence within the current order book or, you know, certain top clients increasing their spend to fully understand what is giving you that confidence?

Question: Sumeet Jain - ICICI Securities - Analyst : Okay, got it. So secondly, want to understand, you guys obviously are sitting on a significant amount of cash from the QIP. So what kind of M&A candidates are you currently evaluating in terms of capabilities or industry verticals?

Question: Sumeet Jain - ICICI Securities - Analyst : Sure.

Question: Sumeet Jain - ICICI Securities - Analyst : I got it. That's helpful. And just last question, maybe for Ram. I can see your infra management and security services business line has been now flat for the last six quarters. So can you explain the reasons for the weakness and when can you see the ramp up happening in the service line?

Question: Sumeet Jain - ICICI Securities - Analyst : That's helpful, thanks for taking my questions, I will come back in the queue

Question: Dipesh Mehta - Emkay Global Financial Services Ltd - Analyst : Yeah. Thanks for the opportunity. Just one clarification, SMI acquisition, we consider as a part of organic revenue growth guidance or it would be additional? Because last year, it was added for about a quarter. So just want to get that clarity. And second thing is about the M&A, we are pursuing M&A for some time, no major progress so far. So what explains in terms of -- whether the valuation mismatch is driving some kind of delay in closer or in terms of the targets are becoming difficult considering their performance might have suffered considering overall macro uncertainty? If you can provide some reason which explains delay in some of the deal closure? Thanks.

Question: Dipesh Mehta - Emkay Global Financial Services Ltd - Analyst : No, thanks.

Question: Gouri Mishra - Narotam Sekhsaria Family Office - Analyst : Hello. Am I audible?

Question: Gouri Mishra - Narotam Sekhsaria Family Office - Analyst : Good morning, team. Actually, all my questions have been answered while answering Ashish, Dipesh and Sumeet. So I kind of don't have any more questions.

Question: Gouri Mishra - Narotam Sekhsaria Family Office - Analyst : Thank you.