Happiest Minds witnessed a very strong September quarter with dollar revenue growth at 8 percent. This is industry-leading growth on a quarter-on-quarter basis and a 45 percent year-on-year growth.

Joseph Anantharaju, executive vice-chairman and CEO of product engineering services at Happiest Minds pointed to three triggers for the company’s growth.

“First, if you look at the digital spend, that continues to be very strong and it is cutting across verticals, all the verticals have exhibited strong growth in the last quarter. The second element is the pent-up demand and we see that continuing to play out because customers had held back last year. We think that between the two of them, the demand will get sustained at the current levels for the next 12 to 18 months,” he told CNBC-TV18.

From a geography perspective, he said, this year the Middle East has come up really strong so that will be one of the growth drivers. Europe has shaped up quite well and there is a good build-up of pipeline, which should help sustain growth, he said. He also said that North America continues to do well, and should act as the anchor for the company’s performance and growth.

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On margins, Venkatraman Narayanan, managing director and chief financial officer, said, “This quarter, we have come in at about 25.6 percent our EBITDA margin. There was a onetime cost of about 1.4 crore which was contribution under a scheme, which we had for our employees, and that added about 1.4 crore in terms of cost in this quarter. So if you adjust for that, we are back to the 26.3- 26.2 percentage EBITDA number that we have been showing the last quarter.”

He added that 22-24 percent has been some sort of guidance on the margins on a sustainable basis but the firm has been beating that for the last four-five quarters.

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Speaking about deal wins, Narayanan said, 87 to 88 percent of business comes from existing customers as the company is going into depth with the existing customers.

“As far as new customers are concerned, we have been following the land and expand kind of a strategy. So we are, you can talk about what's your sweet spot, sweet spot to be a million, or a million and a half is the kind of deals that we start with. But then over a period of time, the effort has to take them up the million-dollar chain,” he said. He added average revenue per customer has also been slowly improving.

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(Edited by : Kanishka Sarkar)