Quick Heal Technologies (QUICKHEAL) Q4 15/16 earnings summary

Executive summary

• FY2016 revenue rose 18.2% YoY to ₹3,380.7 million, EBITDA increased 11.6% to ₹1,024.6 million and PAT grew 8.5% to ₹584.0 million.

• Retail remained the core business; growth priorities included enterprise, government, mobile and international markets, supported by continued R&D investment.

• IPO was subscribed 11 times; shares began trading on BSE and NSE on February 18, 2016.

Financial highlights

• Consolidated revenue from operations increased to ₹3,380.7 million from ₹2,861.2 million in FY2015; total income was ₹3,478.7 million.

• Consolidated EBITDA, excluding other income, grew 11.6% to ₹1,024.6 million; PAT rose 8.5% to ₹584.0 million.

• Operating cash flow was ₹781.0 million versus ₹771.9 million in FY2015; cash and cash equivalents ended at ₹1,167.2 million.

• Total licenses sold increased 22% to 6.86 million; retail 5.76 million, enterprise and government 0.92 million, and mobile 0.18 million.

Outlook and guidance

• FY2017 outlook called for double-digit growth; management targeted 18–20% YoY growth in revenue and profitability.

• Management expected margins to recover through revenue growth, operating leverage, control of R&D and operating costs, and greater enterprise scale.

• Priorities included SMB opportunities, deeper channel engagement, international brand-building, mobile products, SaaS, and security consulting and training.