Quick Heal Technologies (QUICKHEAL) Q4 20/21 earnings summary

Executive summary

• FY21 delivered consolidated revenue of ₹3,330.44 million, EBITDA of ₹1,414.63 million and PAT of ₹1,069.80 million, with recovery through the year as lockdown restrictions eased.

• Retail drove growth, while the enterprise business faced SME liquidity pressure and weak government spending in H1; the balance sheet remained debt-free.

• New Seqrite Hawkk offerings, continued R&D investment, an approved share buyback and a proposed final dividend shaped the growth and shareholder-return agenda.

Financial highlights

• Consolidated revenue from operations rose 16.4% YoY to ₹3,330.44 million; total income was ₹3,572.05 million versus ₹3,177.34 million in FY20.

• Consolidated EBITDA, excluding other income, increased 54.8% YoY to ₹1,414.63 million; EBITDA margin reached 42.5%, up 1,054 bps from 31.9%.

• Consolidated PAT grew 43.8% to ₹1,069.80 million from ₹744.11 million; PAT margin was 32% versus 26% in FY20.

• Consolidated basic EPS was ₹16.66 and diluted EPS ₹16.65, versus ₹11.34 for both measures in FY20.

• Operating cash flow was ₹988.53 million versus ₹705.61 million; current investments rose 39.6% to ₹3,833.10 million at March 31, 2021.

Outlook and guidance

• Management expected enterprise activity to slow in H1 FY22 amid COVID-19 disruption; government business was expected to recover as pandemic-related disruption eased.

• R&D investment was ~19% of revenue; zero-trust, data privacy and cloud security products were being developed for future enterprise demand.

• Management expected long-run receivable days in the 135–145 range, versus 150 days at March 31, 2021.

• Management cited adequate liquidity and business plans to operate and mitigate COVID-19 risks over the 12 months following the financial statement date.