Quick Heal Technologies (QUICKHEAL) Q4 21/22 earnings summary

Executive summary

• FY22 consolidated revenue rose ~3% YoY to ₹341.90 crore; PAT fell 22.2% to ₹83.19 crore as higher R&D, sales and marketing spending weighed on earnings.

• Enterprise and Government grew 23.4%; Retail grew 6% after adjusting for prior-year revenue spillover. Retail represented 78% of revenue and Enterprise and Government 22%.

• The business emphasized next-generation enterprise products, R&D investment and market expansion, while maintaining a debt-free balance sheet.

Financial highlights

• Consolidated revenue from operations was ₹341.90 crore vs ₹333.04 crore; total income was ₹361.10 crore vs ₹357.20 crore, up 1.09%.

• Consolidated PAT was ₹83.19 crore vs ₹106.97 crore; PBT was ₹108.68 crore vs ₹146.13 crore.

• EBITDA excluding other income was ₹106.86 crore, down 24.5% YoY; higher R&D and sales and marketing costs were the main factors.

• Other income declined to ₹19.20 crore from ₹24.16 crore, mainly due to lower interest income from financial instruments.

• Operating cash flow was ₹80.83 crore vs ₹98.62 crore; investing activities generated ₹124.81 crore, while financing outflow was ₹214.16 crore.

Outlook and guidance

• Management expects SME-sector growth to support the next leg of business momentum; Enterprise ARR exceeded ₹100 crore.

• A product roadmap spans the next couple of years, with continued R&D focused on next-generation products for global enterprise customers.

• Global cybersecurity demand is expected to expand at 11% CAGR through 2025; the enterprise market is expected to grow faster than consumer security.