Happiest Minds is hoping to maintain operating profit (EBITDA) margin for the better part of this year, Venkatraman Narayanan, Managing Director & CFO of the company, said in an interview to CNBC-TV18. He said a margin in the range of 21-23 percent was sustainable.
“We are looking at maintaining our profit margins for the year. What we lose in terms of the topline growth for the current year, we would like to make up through the margins. We are at about 26 percent EBITDA for Q1, Q2, and hope to continue to maintain that for at least the better part of this year,” Narayanan said.
Narayanan said that they are seeing spends open up but are cautiously optimistic for the second half of this year.
“Our IPO was coming out at the peak of the pandemic. Now you are looking at slow improvement, but there are certain risks that we see in terms of maybe a relapse and the spends again going back a little bit back from where it was starting to open up right now. So, we are seeing spends open up, we are looking at pent up demand coming back, but that said Q3, Q4 we would like to be cautiously optimistic,” he said.
Joseph Anantharaju, Executive Vice Chairman of Happiest Minds said that it was too early to comment on acquisitions.
“We wanted to get through our IPO first because that was the focus and we wanted to make sure that we had that process underway. We have just started looking at the acquisition strategy, started talking to investment bankers. So, it is too early to have anything concrete to share,” he said.
However, Narayanan said that they would look at Europe for growth. “Europe is about 11 percent of our total business. Anything that adds to that will help us,” he said.