A significant portion of Happiest Minds Technologies’ revenue comes from the US. However, the company now aims to reduce its dependence on the US to less than 65 per cent in a sustainable manner. “This means that while the company reduces its dependence on the US for revenue, it will grow elsewhere at the same time,” said a senior executive at Happiest Minds.
The US is the single largest source of revenue for almost all Indian software companies. This is because the US is a huge tech-savvy market, where there is an emphasis on rapid adoption of technology related things. On an average, 48% of Indian software companies’ revenue comes from the US, up from 55-60% earlier. For Happiest Minds, the average was 70 per cent, but it came down to 66% in the recently ended second quarter.
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Joseph Anantaraju, executive vice-chairman, Happiest Mind, said, “Earlier, nearly 80 per cent of our revenues came from the US alone. We are diversifying our revenue sources to reduce our revenue dependence on the US. In the 2021 quarter, it declined from 77% p.a. to 66%. But we know that such a massive drop is not possible and neither is it sustainable.” Anantaraju told that the idea is to keep the revenue share from the US below 65 per cent on a sustainable basis in the next few years.
Meanwhile, Venkataraman N, MD and CEO of the company, said, “The sharp decline in US share in Q2 revenue was due to a major deal with a client from a West Asian country. Due to this deal, we have been cut off from the rest of the world. Revenue from 2.6% increased percentage to 9%. In addition, the US share of revenue has also come down due to a multi-million dollar deal with a German engineering company.
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He said that the company may sign some more deals in the coming quarters with Western European countries and especially Germany. Meanwhile, Happiest Minds shares closed 3.11% higher at Rs 1,290.00 during muhurat trading on Thursday. So far this year in 2021, the stock has climbed 281.26%.
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