Happiest Minds Digital Integrated Annual Report 2021-2022

ABOUT HAPPIEST MINDS

‘Born digital and Agile, Powering a Better World.’

Happiest Minds is a next-generation digital transformation, infrastructure, security and product engineering services company.

DELiGHT

Design for Perpetuity

ESG Excellence

Thought Leadership

Profitable Growth

Ambassador for Happiness

World-Class Team

About Us

SMILES

Sharing

Mindful

Integrity

Learning

Excellence

Social Responsibility

About Us

Happiest People . Happiest Customers

About Us

Great Place to Work® Institute

Ranked #21 - India's Best Companies to Work for 2021

Great Place to Work® Institute

Ranked #63 - Asia’s Best Workplaces 2021

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“Happiness comes from giving, not getting. If we try to bring happiness to others, we cannot stop it from coming to us also. To get joy, we must give it, and to keep joy, we must scatter it.” - John Templeton

Social Responsibility is a core value of Happiest Minds. It is also one of our vision statements where we have set out to “be a leader in integrating social responsibility initiatives with core business operations”.

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The Year as it Was

Industry-leading Growth with a Superior Margin Profile

41.8%

In total income to ₹ 1,13,075 Lacs

26.1%

EBITDA margin to ₹ 29,477 Lacs

Delivering Returns to Shareholders

95.7%

In market capitalization to ₹ 15,51,834 Lacs as on March 31, 2022 (₹ 7,93,137 Lacs in FY 2020-21)

₹ 3.75 per share

Interim dividend of ₹ 1.75/- per share & recommend a final dividend of ₹ 2/- per equity share (₹ 3/- per share in FY 2020-21)

Gaining Recognition Among the Analyst Community

Recognized as a ‘Major Contender’ in Everest Group PEAK Matrix for Digital Engineering
Featured in NASSCOM’s report on India Cybersecurity Industry Services & Product Growth Story for a case study on major civil aviation infrastructure. We are also recognized as managed security service providers and integrators under emerging cyber security services hubs.
Featured in NASSCOM Cloud Case study Compendium on Digital Content Monetization (DCM) solution
Recognized in Zinnov Zones as a:
- Leader for Enterprise Software
- Leader for ER&D (Small & Medium Service Providers)
- Niche-Established for AI Engineering
- Niche-Established for IoT Services
Recognized by Information Services Group (ISG), with two 2021 ISG Digital Case Study Awards™
Included in Forrester Now Tech: Robotic Process Automation Services Analyst Report

For the complete list of Analyst Mentions, refer to: https://www.happiestminds.com/about-us/analyst-mentions/

Robust Business Wins

33

New Customers

54

Fortune 2000 / Forbes 200 Billion $ Corporations

Strengthened Talent Capabilities

940

Net Happiest Minds Additions (562 in FY 2020-21)

Enabling Customer Happiness

53

Net Promoter Score (57 in FY 2020-21)

Customer Satisfaction

7.7/9.0

Customer Happiness Score (7.8/9.0 in FY 2020-21)

Value Created Across Six Capitals

It represents the funds that are available to us, including debt and equity, which we deploy in the business and in other capitals to support our operations and business strategy.

It represents the collective knowledge of the organization which helps us in delivering innovative solutions to clients as well as provides us a competitive edge in the industry.

R&D Investments

₹ 1,383 Lacs

₹ 1,450 Lacs in FY21

Digital Revenues

97%

It represents the competencies, experience, engagement, and motivation of our people to work passionately towards serving our clients and achieving organizational goals.

People Satisfaction Score

93% (GPTW)

94% in FY21

Utilization

80.5%

79.5% in FY21

It represents the quality of relationship that we have with our stakeholders, the shared values we create for them as well as the intangibles associated with our brand that drive their willingness to associate with us.

Active Customers

206

173 in FY21

Net Promoter Score

53

57 in FY21

It represents the renewable and
non-renewable environmental resources that we use in conducting our operations.

tCO₂e Carbon Emissions (Scope 1 + 2)

907.03

837.54 in FY21

Water Recycled

87.38%

66.20% in FY21

It represents the state-of-the-art tangible infrastructure like office space, IT hardware and telecommunication equipment, and other infrastructure which helps us in carrying out activities efficiently and driving the wellbeing of Happiest Minds.

Offices/Presence

16

11 in FY21

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Our Business Model

Input

Net Worth: ₹ 66,580 Lacs
Cash and Cash Equivalents: ₹ 63,200 Lacs
Plant, Property and Equipment: ₹ 78 Lacs

Output

Operating Revenue: US$146.6 Million; Growth of 40.2% y-o-y
Total Income of ₹ 1,13,075 Lacs; Growth 41.8% y-o-y
EBITDA of ₹ 29,477 Lacs, 26.1% of Total Income (Growth of 36.9% y-o-y)
PAT of ₹ 18,120 Lacs (Growth of 11.5% y-o-y)
Free Cash Flows of ₹ 29,064 Lacs
RoCE & RoE of 39.8% and 27.3% respectively
Increase in Market Capitalization by 95.65% as compared to FY21
Earnings Per Share of ₹ 12.55
Dividend Per Share ₹ 3.75

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

Input

3 Centers of Excellence (CoEs) for IoT, Analytics / Artificial Intelligence and Digital Process Automation
Delivery Centers: 3
16 offices/presence in 7 countries

Output

Best-in-class ecosystem benefiting Happiest Minds and Customers
Achieving greater efficiency with reduced cycle time
Local presence in 7 countries to facilitate prompt business turnaround

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

Input

R&D Expenditure: ₹ 1,383 Lacs
IPs/Solution Accelerators: 7

Output

Recognized as a ‘Major Contender’ in Everest Group’s PEAK Matrix for Digital Engineering
Featured in NASSCOM’s report on India Cybersecurity Industry Services & Product Growth Story for a case study on major civil aviation infrastructure. We are also recognized as managed security service providers and integrators under emerging cyber security services hubs
Featured in NASSCOM Cloud Case study Compendium on Digital Content Monetization (DCM) solution

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

Input

Happiest Minds: 4,168
Employee Benefits Expense: ₹ 62,000 Lacs
Diverse and Inclusive Workforce: 26.4% women, 10 Nationalities
Total Training Hours: 1,18,325 (Excluding Mandatory Training hours)
Average training hours per Happiest Mind: 32

Output

Women Happiest Minds as a % of total workforce increased from 24.5% in FY21 to 26.4%
Recognized as one of the Top 15 of India’s Best Workplaces in Health and Wellness by Great Place To Work® Institute (GPTW)
Learning Hours in FY22 increased by 46% compared to FY21

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

Input

CSR Spend: ₹ 215 Lacs
175 interactions with analysts, investors and shareholders through periodic earnings calls, conferences, etc.
Active Customers: 206

Output

Net Promoter Score: 53
Million Dollar Customers: 38
Repeat Revenues: 85%
Akshaya Patra Foundation Meals: 12,76,622

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

Input

Vision to be Carbon Neutral by 2030
Energy-saving initiatives and optimization
Promoting responsible use of water in-house and through community initiatives
Optimizing Business Travel
Water Consumption: 984.22 KL
Energy Consumption: 4,375.89 GJ

Output

Total water recycled – 87.38% (FY22), 66.2% (FY21)
Total Emissions (Scope 1 + Scope 2) = 907.03 tCO2e (FY22), 837.54 tCO2e (FY21)

Value Creation

Opportunity Tracking

Sales Intelligence Tool
Partner Connect
Deal Database
Customer Referrals
Lead Generation and Nurturing
Proactive Proposals
Skills, Competencies, and Capabilities of Happiest Minds

Capitalizing on Projects

Deal Qualification
Clarity on value proposition
Stakeholder mapping
Interlocks with other enterprise applications
Collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing
Innovative pricing technique
Win/Loss analysis

Delivery Excellence

Matching skills and aspirations of Happiest Minds to customer requirements
Use of accelerators/new solutions, tools
Collaborations, unmatched personal experience
Continuous project monitoring, defect tracking
Implementation of LEAN initiative
Robust Quality Control processes

Client Retention

Capturing feedback
Evaluation and assessment of project execution and delivery
Identification of improvement areas
Obtaining dual level customer feedback on four broad parameters: satisfaction, advocacy, loyalty and value for money

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INTEGRATED ANNUAL REPORT 2022

HAPPIEST MINDS

DESIGNED FOR PERPETUITY

ABOUT HAPPIEST MINDS

‘Born digital and Agile, Powering a Better World.’

DELiGHT

SMILES

Happiest People . Happiest Customers

Ranked #21 - India's Best Companies to Work for 2021

Ranked #63 - Asia’s Best Workplaces 2021

Glimpses of FY22

ABOUT HAPPIEST MINDS

Chairman’s Letter

Ashok Soota

The Happiest Minds’ model for creating an institution which will survive in perpetuity is unique.

ABOUT HAPPIEST MINDS

Executive Board’s Letter

Joseph Anantharaju

Rajiv Shah

Ram Mohan C

Venkatraman Narayanan

The Year as it Was

41.8%

26.1%

95.7%

₹ 3.75 per share

33

54

940

53

7.7/9.0

Value Created Across Six Capitals

R&D Investments

₹ 1,383 Lacs

₹ 1,450 Lacs in FY21

Digital Revenues

97%

People Satisfaction Score

93% (GPTW)

94% in FY21

Utilization

80.5%

79.5% in FY21

Active Customers

206

173 in FY21

Net Promoter Score

53

57 in FY21

tCO2e Carbon Emissions (Scope 1 + 2)

907.03

837.54 in FY21

Water Recycled

87.38%

66.20% in FY21

Offices/Presence

16

11 in FY21

Our Business Model

Input

Output

Value Creation

Input

Output

Value Creation

Input

Output

Value Creation

Input

Output

Value Creation

Input

Output

Value Creation

Input

Output

Value Creation

BUSINESS SEGMENT REVIEW

Digital Business Services (DBS)

BUSINESS SEGMENT REVIEW

tCO₂e Carbon Emissions (Scope 1 + 2)