EXPLORING NEW HORIZONS WITH

GENERATIVE AI

Digital Integrated Annual Report 2023-24

A futuristic cityscape intertwined with verdant flora, symbolizes the synergy of Generative AI with other business verticals. The radiant orb of light, a metaphor for Generative AI, illuminates untrodden paths, guiding our journey toward innovative frontiers

ABOUT HAPPIEST MINDS Leading Transition to a Digital and Sustainable World

Happiest Minds is a Product & Digital Engineering, Generative AI, and Infrastructure Management & Security Services Company.

Learn About Us

Chairman’s Letter

Looking ahead, we are excited about the future, driven by the transformational changes implemented in FY 2023-24 and acquisitions closed in the early days of FY 2024-25.

Ashok SootaExecutive Chairman

Letter to Stakeholders

Executive Board's Letter

Joseph Anantharaju

Executive Vice Chairman & CEO - Product & Digital Engineering Services (PDES)

Rajiv Shah

President & Executive Board Member

Ram Mohan C

President & CEO - Infrastructure Management and Security Services (IMSS)

Venkatraman Narayanan

Managing Director & CFO

Letter to Stakeholders

KEY PERFORMANCE INDICATORS Validating Our Focused Growth Approach

VALUE CREATION MODELDesigned to Create Value Sustainably

INPUT

Net Worth: ₹1,48,024 Lakhs
Cash and Cash Equivalents ₹1,36,970 Lakhs

OUTCOMES

Operating Revenue: US$196.13 Million (↑10.3%)
Total Income: ₹1,71,003 Lakhs (↑17.9%)
EBITDA: ₹42,122 Lakhs (↑10.9%)
PAT: ₹24,839 Lakhs (↑7.5%)
Free Cash Flows: ₹41,067 Lakhs
RoCE & RoE: 22.3% & 16.9% respectively
Market Capitalization: ₹11,33,534 Lakhs
Earnings per share (Diluted): ₹16.73
Dividend per share: ₹5.75

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

INPUT

Plant, Property and Equipment: ₹13,778 Lakhs
4 Centers of Excellence (CoEs): IoT, Analytics/Artificial Intelligence, Digital Process Automation and Cyber Security
Delivery Centers: 9
21 offices/presence in 8 countries

OUTCOMES

Best-in-class ecosystem benefiting Happiest Minds and customers
Higher efficiency with reduced cycle time and faster turnaround

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

INPUT

R&D expenditure: ₹1,843 Lakhs
IPs/Solution Accelerators: 7

OUTCOMES

Expertise in Generative AI & AI, Big Data and Advanced Analytics, Internet of Things (IoT), DevOps, Robotic Process Automation (RPA), Low-Code Application Platforms (LCAP), Blockchain, Cloud, Business Process Management (BPM) and Integration, Security
Won multiple recognitions

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

INPUT

Happiest Minds: 5,168
Employee Benefits Expense: ₹94,772 Lakhs (Happiest Minds Stand-alone) ₹1,01,469 Lakhs (Happiest Minds, INC & SMI)
Attrition rate – 13.1%
Total Training Hours: 1,44,124 (excluding mandatory)
Average Training Hours per Happiest Mind: 33.08

OUTCOMES

Women Happiest Minds representation: 27.7% (27.4% in FY 2022-23)
Diverse workforce including 10 nationalities
Great Place to Work^® Institute (GPTW) recognition:
- Top 50 India’s Best Workplaces^™ in Health and Wellness 2023
- Top 50 India’s Best Workplaces^™ in IT & IT-BPM 2023
- Top 50 India’s Best Workplaces^™ for Women 2023
- Top 50 India’s Best Workplaces^™ for Building a Culture of Innovation 2023
Fortune recognition: Ranked #2 among Top 30 Future-Ready Workplaces of India
Avtar & Sermount recognition: 100 Best Companies for Women in India 2023
PoSH Awareness Month celebrated, PoSH policy updated, internal committee revamped; Leadership training, IC meetings successfully completed
Happiest Minds Run uniting over 1,000 members across four locations to support the Idhayangal Charitable Trust with a donation of ₹10 Lakhs for children with Type-1 diabetes
Blitz, the tech fest by Happiest Minds with the theme, "Ignite Inspire Innovate", energized team members came together over to tackle 11 events, resulting in a vibrant fusion of technology and creativity

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

INPUT

Focused partnerships with NGOs to support community and environmental initiatives
Through Akshaya Patra initiatives, 4,463 children across 73 schools were served 15,23,743 meals
Collaborating with Rural Rising, refurbished 5 existing RO (reverse osmosis) units and constructed 2 new RO units in the Raichur Taluk
Through the Idayangal Trust, supported 64 children diagnosed with Type-1 diabetes for a year
285 interactions with analysts, investors and shareholders
Active customers: 250

OUTCOMES

Net Promoter Score: 65
Million Dollar customers: 48
Repeat revenues: 90%
Total CSR Spend: ₹226.27 Lakhs

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

INPUT

Vision to be Carbon Neutral by 2030
Energy-saving & optimization initiatives: We have replaced fluorescent lamps with LED lamps. We also use cloud-based servers optimizing our IT energy infrastructure
Promoting responsible use of water in-house and through community initiatives
Optimizing business travel, waste reduction through reusing and recycle
Water consumption: 9,204.206 KL
Energy consumption: 39,69,007 KWh

OUTCOMES

Rainwater harvesting
Total emissions (Scope 1 + Scope 2) = 4084 MTCO₂e (1242 tCO₂e + 2842 tCO₂e)
Total water recycled through STP - 100%
Electricity generated from Renewable Energy (Solar) - 4,92,559 KWh 10% of solar energy utilization

OUR OPERATING MODEL

Opportunity Tracking

Sales Intelligence Tool
Partner connect, deal database and customer referrals for lead generation, nurturing and proactively sending proposals
Skills, competencies, and capabilities of Happiest Minds

Capitalizing on Projects

Deal qualification and clarity on value proposition
Stakeholder mapping, interlocks with other enterprise applications and collaboration on CRM
Management review of pipeline
Controlled access to proposal repository
Customer testimonials
Deal-based marketing and innovative pricing technique
Win/Loss analysis

Delivering Excellence

Matching people skills, entering collaborations and use of accelerators/ new solutions/tools to meet customer requirements
Continuous project monitoring, and defect tracking supported by LEAN and quality control processes

Client Retention

Evaluation and assessment of project execution and delivery
Identification of improvement areas
Customer feedback: satisfaction, advocacy, loyalty and value for money

BUSINESS SEGMENT REVIEW

Product & Digital Engineering Services (PDES)

In FY 2023-24, Happiest Minds underwent a major transformative change by integrating its two largest business units to create greater synergies and customer value.

Generative AI Business Services (GBS)

We stand at the forefront of the transformative wave propelled by ‘Generative AI’, which is pivotal in reshaping contemporary business dynamics and fostering advancements in information access, innovation, and operational efficiency.

Infrastructure Management and Security Services (IMSS)

Our Infrastructure Management & Security Services offers end-to-end monitoring and management and secure ring-fencing of customers' infrastructure and applications.