Dear Stakeholders. We hope you are doing well and keeping safe.In a rapidly changing world, we remain agile in adopting the latest technologies while delivering relevant digital and transformational solutions and services to our customers across our chosen industry verticals worldwide. We have built on our strengths and worked on our weaknesses while sharpening our focus on our values, people, culture, systems, and governance. We believe we are well on our way to achieving ‘Vision 2031’ for your Company.

While FY22 was one of recovery and growth, FY23 was a year where the first half showed continued growth while headwinds in the global macroeconomic environment marred the second. The performance of developed economies and forecasts in the second half characterized an expected slowdown in the US & Europe. Mirroring these concerns were initiatives taken by large companies in costs, workforce reduction, and the like. The start-up ecosystem, which drives technology innovation, adoption, and capital spending, was deeply affected. It was amoment of wait and watch.

As an economy, India remained buoyant and continued to report good numbers. In contrast, we at Happiest Minds continued to deliver industry-leading performance both in growth and profitability during the year. While we did see some impact of the macroeconomic environment on our business during the third quarter, we exited the year with multiple new customer sign-ups, an acquisition, and a very strong new business pipeline.

We delivered excellent results for FY23:

• Our revenues for the year were ₹142,929 lakhs (US$177.8 mn) which showed a growth of 30.7% over the previous
• Our revenues have grown at a compounded rate of 35.9% over the last 3 years
• Strong earnings before interest, tax, depreciation, and amortization (EBITDA Margin) of 26.2%, showing a growth of 28.9% over the previous

Your Company’s revenue growth was broad-based, and all three Business Units (BU) have shown growth and profitability driven by demand and growth across all our geographies and verticals. Our financial return ratios continue to be healthy.

In all, we are very happy to report on an industry-leading performance in growth and profitability for the year.

We continue to be recognized for excellence in corporate governance. Awards and accolades won during the year are testimony to the same, and some of these are:

• Golden Peacock Award for Excellence in Corporate Governance 2022
• ICSI Best Governed Company in Listed Segment: Medium Category
• ICAI award for ‘Excellence in Financial Reporting for 2021-22’ Plaque in Service Sector
• GOLD at the League of American Communications Professionals’ (LACP) 2022 Spotlight Awards for the Integrated Annual Report (FY 2021-22)

Our philosophy on transparency and ethics has found us favor amongst all stakeholders.

At Happiest Minds, we have ensured shared value creation and fairness to all our stakeholders – clients, colleagues, investors, partners, society, and the government. Our value systems, integrity standards, people-centric policies, vibrant culture, and commitment to our mission and vision help build a conducive environment for our people and fuels our performance.

As a technology Company and one working at the forefront of digital technologies, we work continuously to enhance our expertise in emerging technologies by investing in people and R&D. These teams work on use cases, proof of concepts, and demos, built at the intersection of newer technologies, verticals of focus, and alliances with technology companies. Investments in our Centers of Excellence (CoEs) – Security, Automation, IoT, Analytics/AI are helping us navigate a complex technology landscape while making relevant and value-driven technology propositions available to our customers.

We continue the people-centricity, location independence, and resilient delivery themes. As always, we evaluate, test, and deploy technology solutions that best meet and enhance the needs of our teams, customers, and stakeholders. People are our greatest asset and differentiator. We saw a year that started with increased attrition amongst our people, which has nicely trended down over the quarters. We are grateful to all our teams who have worked tirelessly to make this possible.

Your Company received multiple accolades from the Great Place to Work® Institute, which validates our people-first approach:

• Top 50 India’s Best Workplaces Building a Culture of Innovation by All™ 2023
• Top 10 India’s Best Workplaces™ in Health and Wellness 2022
• Top 50 India’s Best Workplaces™ for Women 2022
• Top 100 Best Workplaces in Asia™ 2022
• Top 50 Best Companies to Work™ 2022
• India’s Top 25 Best Workplaces in IT & IT-BPM 2022

Your Company’s Glassdoor® rating stood at 4.3 and was among the highest amongst services companies.

These recognitions and ratings corroborate our efforts to foster an open culture, putting our people first in everything we do, and focusing on their learning and development.

Over 749 new Happiest Minds joined us last year, with over 249 of them being from engineering campuses. Our learning platforms have enabled our people to log in more than 105,000 hours (an average of 25 hours per Happiest Mind) of training during the year. Our people go through structured career acceleration and upskilling programs. We ended the year with over 4,917 Happiest Minds, of which 27% were women. We are committed to building a diverse team with empowered women in leadership positions

Our commitment to the environment, society, and governance remains steadfast. We continue to invest in these areas from both CSR funds earmarked and our balance sheet. Programs on the environment and social activities find enthusiastic participation from amongst our people.

As we look ahead, large enterprises are adopting digital and driving transformation to make them more connected with their customers, employees, and partners. We continue to be the provider of choice with a set of capabilities that are most relevant to our clients. The future is digital, and Happiest Minds is well-positioned to be the leader here.

We embark into FY23 with our priorities set on profitable growth, expanding our service and technology offerings within our customers, geographies, and verticals. We will continue adopting a customer-centric approach by enabling our customers actionable insights and value propositions. Mergers and Acquisitions (M&A) will continue to be a key growth driver, and we pursue opportunities vigorously.

We extend our gratitude to our teams, whose motivation and creativity are the basis of our sustained success. Their commitment has helped us build good customer relationships and credibility to realize our shared vision and long-term targets.

We thank you for your support, encouragement, and timely advice, as we look forward to the best days ahead of us.

With warm regards,

Happiest Minds’ Executive Board