Quick Heal Technologies (QUICKHEAL) Q4 16/17 earnings summary

Executive summary

• FY2017 revenue from operations declined 0.7% YoY to ₹2,999.73 million, with demonetisation weighing on retail sales; enterprise and mobile revenue grew 30% and 40%.

• Growth investments continued across R&D, infrastructure, systems, technology and products, alongside a focus on expanding enterprise and international presence.

Financial highlights

• Total income rose to ₹3,284.24 million from ₹3,119.93 million; finance income increased to ₹244.20 million from ₹65.41 million, including deposit interest and tax-refund interest.

• EBITDA was ₹901.44 million, down 11.6% YoY from ₹1,019.16 million; PAT was ₹532.27 million versus ₹579.08 million.

• Adjusted for the ₹37.80 million Wegilant impairment, PAT was ₹570.07 million; the impairment was treated as an exceptional item.

• Operating cash flow was ₹358.29 million versus ₹777.04 million; capital expenditure was ₹350.10 million versus ₹360.50 million.

Outlook and guidance

• Management targeted 18%–20% YoY growth in revenue and profitability, with margin improvement expected as enterprise and mobile scale and existing products generate more revenue.

• FY2018 priorities included tailored SME and enterprise offerings, stronger outreach to BFSI, healthcare and hospitality, SaaS promotion, mobile free-solution monetisation and international expansion.

• R&D focus includes IoT and home-security automation; continued product development and broader enterprise solutions were priorities.