Happiest minds Q2 net profit rises 15% as AI uncertainty weighs

Bengaluru: Happiest Minds Technologies reported a 15.1% year-on-year rise in net profit to ₹62.1 crore for the September quarter, even as slower client decision-making amid uncertainty over artificial intelligence (AI) weighed on its performance. Sequentially, it contracted 8%.

The small-tier IT services provider posted a revenue of ₹645.4 crore for the second quarter, up 12.5% YoY and 2.7% quarter-on-quarter.

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In constant currency terms, the topline grew 6.8% year-on-year.

Venkatraman Narayanan, managing director of Happiest Minds, said the company is behind its target of 12.5% constant-currency revenue growth even as the demand scenario looks relatively good.

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"The sales cycles are long, decision-making is slow, and the environment is not helping things," he told ET in a post-earnings interaction. "One of the questions customers are asking is: if I spend this money, will AI come and disrupt it? If I wait longer, will I get a better solution with AI?"