Quick Heal Technologies (QUICKHEAL) Q4 17/18 earnings summary

Executive summary

• FY18 revenue from operations rose 6% to INR 3,183.15 million; EBITDA increased 33.5% to INR 1,203.41 million and PAT rose 55.94% to INR 830.05 million.

• Profitability gains reflected cost optimisation and operating leverage; retail remained the largest revenue contributor, while Enterprise and Government licenses sold grew 23%.

Financial highlights

• Total income increased 6.05% to INR 3,483.17 million from INR 3,284.24 million in FY17.

• EBITDA excluding other income was INR 1,203.41 million, up 33.5% YoY; EBITDA margin rose to 37.81% from 30.05%.

• PAT reached INR 830.05 million from INR 532.27 million; no interest expense and lower depreciation supported the increase.

• Other income was INR 300.02 million, including a one-time INR 65.96 million service-tax credit.

Outlook and guidance

• FY19 priorities include growing SMB and enterprise business, tailoring products for target industries, expanding mobile capabilities and increasing international reach.

• Focus industries include manufacturing, BFSI, healthcare and hospitality; expansion plans target Africa, the Middle East and Southeast Asia.

• Planned initiatives include SaaS offerings, IoT and home-security automation, Tier II/III market penetration, and monetisation of free mobile solutions.