Quick Heal Technologies (QUICKHEAL) Q4 22/23 earnings summary

Executive summary

• FY23 consolidated revenue fell 18.7% to ₹278.09 crore and PAT declined to ₹6.40 crore from ₹83.19 crore, amid higher R&D and sales and marketing investment and a consumer-market correction.

• Enterprise brand SEQRITE recorded ₹106.9 crore revenue, up 21% YoY; the business maintained retail and SMB leadership while expanding in mid-market and enterprise offerings.

Financial highlights

• Consolidated total income was ₹300.22 crore vs ₹361.10 crore; revenue from operations was ₹278.09 crore vs ₹341.90 crore.

• PAT was ₹6.40 crore vs ₹83.19 crore; PBT was ₹8.02 crore vs ₹108.68 crore. Consolidated basic EPS was ₹1.14 vs ₹14.01.

• EBITDA excluding other income was ₹1.88 crore vs ₹106.86 crore, down 98.24% YoY; higher R&D and sales and marketing spend drove the decline, with R&D expensed as incurred.

• Operating cash flow was ₹30.81 crore vs ₹79.98 crore; cash and cash equivalents ended FY23 at ₹11.58 crore vs ₹7.83 crore.

Outlook and guidance

• SEQRITE was growing 21%; enterprise business was projected to outpace consumer by 3x through FY25, supported by increased investment in enterprise solutions.

• FY23 R&D spend rose 33.6% to ₹121.31 crore, equal to 43.6% of sales; priorities include EDR/XDR, Zero Trust, cloud, network security and data privacy products.

• Management described a two-part response to subdued profits: segment-wise revenue enhancement and cost optimization.