Quick Heal Technologies (QUICKHEAL) Q4 18/19 earnings summary

Executive summary

• FY19 revenue from operations was ₹3,149.26M, down 1.1% YoY; EBITDA excluding other income rose 6.28% to ₹1,279.01M and PAT increased 10.62% to ₹918.24M.

• Retail remained the market leader in India with 30%+ share; Enterprise and Government revenue grew 8% despite competitive pressure and lower average realizations.

Financial highlights

• Consolidated total income was ₹3,475.93M versus ₹3,483.17M in FY18; PBT rose to ₹1,370.19M from ₹1,234.16M.

• EBITDA excluding other income increased 6.28% to ₹1,279.01M; EBITDA margin was 40.61% versus 37.81% in FY18.

• PAT rose 10.62% to ₹918.24M; consolidated basic/diluted EPS was ₹13.03/₹13.02 versus ₹11.82/₹11.79.

• PAT margin increased to 29% from 26%; ROCE rose to 13.8% from 13.5%.

• Operating cash flow was ₹613.87M versus ₹938.98M; lower collections and direct tax payments affected cash generation.

Outlook and guidance

• Priorities include AI/ML-led product development, IoT and home-security automation, deeper Tier II/III reach, targeted industry expansion, mobile monetisation and growth in Africa, the Middle East and Southeast Asia.

• Enterprise momentum is expected to improve with the expanded portfolio; new retail technology was planned for launch in Q1 FY21.

• Indian GDP growth was projected at 7.5% for 2019 by the IMF; rising digitisation and data-protection regulation were viewed as demand drivers for cybersecurity.