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INTEGRATED ANNUAL REPORT 2022

HAPPIEST MINDS

DESIGNED FOR PERPETUITY

  • Endless stream of successes
  • Symbol of an unending cycle
  • Steps towards perfection
  • Security for all time

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

SMILES

Sharing

Mindful

Integrity

Learning

Excellence

Social Responsibility

Happiest People .  Happiest Customers

“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”.

Glimpses of FY22

ABOUT HAPPIEST MINDS

Chairman’s Letter

Ashok Soota

Executive Chairman

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

ABOUT HAPPIEST MINDS

Executive Board’s Letter

Joseph Anantharaju

Executive Vice Chairman & CEO Product Engineering Services (PES)

Rajiv Shah

President & CEO Digital Business Services (DBS)

Ram Mohan C

President & CEO Infrastructure Management and Security Services (IMSS)

Venkatraman Narayanan

Managing Director & CFO

The Year as it Was

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

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

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

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

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

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

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

BUSINESS SEGMENT REVIEW

Digital Business Services (DBS)

Enhancing business outcomes with digital modernization and transformation

BUSINESS SEGMENT REVIEW

Infrastructure Management & Security Services (IMSS)

Ensuring safe, secure and efficient data center, cloud infrastructure and applications

BUSINESS SEGMENT REVIEW

Product Engineering Services (PES)

Engineering excellence to build the next-generation of smart, secure, and connected products and platforms

ESG

Message from the President

Aurobinda Nanda

President - Operations & Deputy Chief Executive Officer, PES

Environmental

Delivering Solutions across the Globe

We have built a presence and established our competencies in strategic locations. We will continue to leverage our technology expertise and offshoring capabilities to position ourselves as an attractive digital transformation partner.