Quick Heal Technologies (QUICKHEAL) Q4 19/20 earnings summary

Executive summary

• FY20 was challenging: consolidated revenue fell 9.1% to ₹2,861.38M and PAT declined 19% to ₹744.11M; COVID-related dispatch disruption materially affected Q4.

• Retail remained the core business at 80% of revenue; enterprise and government contributed 20%.

• Continued investment in cybersecurity technology and new security categories, while management cited work-from-home and endpoint-security demand as potential opportunities.

Financial highlights

• Consolidated revenue from operations was ₹2,861.38M vs ₹3,149.26M in FY19; total income was ₹3,177.34M vs ₹3,475.93M.

• EBITDA, excluding other income, was ₹913.92M, down 28.5% YoY from ₹1,279.01M; EBITDA margin was 31.9% vs 40.6%.

• Consolidated PAT was ₹744.11M vs ₹918.24M; PBT was ₹1,013.11M vs ₹1,370.19M.

• Consolidated basic and diluted EPS were both ₹11.34 vs ₹13.03 and ₹13.02, respectively, in FY19.

• Operating cash flow rose to ₹705.61M from ₹613.87M; cash and cash equivalents were ₹100.72M at year-end vs ₹129.56M.

Outlook and guidance

• No quantified FY21 guidance; management expects digital sales to become a larger portion of retail business as online purchasing and renewals increase.

• Remote work is driving demand for endpoint and network security; management expects these developments to support business in coming quarters.

• MSMEs may face near-term pressure from COVID-19, with accelerated digitisation expected to support medium- and long-term cybersecurity demand.