Quick Heal Technologies Ltd. · NSE:QUICKHEAL
Quick Heal Technologies — Q3 FY17 Earnings Presentation
22 slides from Quick Heal Technologies's earnings presentation, February 2017
Slide 1: Quick Heal Technologies Limited – Q3 & 9M FY17 Results Update
Quick Heal Technologies Limited Q3 & 9M FY17 – Results Update February 2017 1
Slide 2: Disclaimer
DISCLAIMER This presentation and the following discussion may contain “forward looking statements” by Quick Heal Technologies Limited (“Quick Heal” or the “Company”) that are not historical in nature. These forward looking statements, which may include statements relating to future results of operat
Slide 3: Discussion Summary
DISCUSSION SUMMARY • COMPANY OVERVIEW • STRATEGY & OUTLOOK • Q3 & 9M FY17 RESULT ANALYSIS • Q3 & 9M FY17 FINANCIALS • SHAREHOLDING STRUCTURE 3
Slide 4: Company Overview: Quick Heal Journey
COMPANY OVERVIEW QUICK HEAL JOURNEY 1995 - 1998 2006 - 2007 2009 - 2010 2011 • Incorporation as ‘CAT Computer • Company renamed as Quick Heal • Private Equity Investment firm Sequoia • Incorporates Quick Heal in Kenya Services Pvt. Ltd.’ Technologies Pvt. Ltd. from CAT Capital, invests in Quick Heal
Slide 5: Strong Brand Recognition and Recall
COMPANY OVERVIEW STRONG BRAND RECOGNITION AND RECALL 7.6 m 2.0x Growth 30% + Preferred Choice of IT technicians for PC Active Licenses across more Active Licenses over last Retail Market Share in India Virus Cleaning than 80 countries 5 years 15,371 Retail, 499 Enterprise, 99 Government and 1,513 Mo
Slide 6: Technology & Market Leadership
COMPANY OVERVIEW TECHNOLOGY & MARKET LEADERSHIP International Certificates Awards in India • 2016: Seqrite Endpoint Security (EPS) and Quick Heal Total Security recognized as a ‘Top Product’ by AV-Test Institute in their September-October 2016 test results • 2016: Seqrite EPS Enterprise Suite Editio
Slide 7: Extensive Reach & Presence
COMPANY OVERVIEW EXTENSIVE REACH & PRESENCE Quick Heal – 64 offices & warehouses across 36 cities in India INDIA (HO) UAE DUBAI Quick Heal Technologies Quick Heal Technologies Seqrite Technologies Head Office & R&D Center Ltd. (MENA) FZE DMCC Pune USA JAPAN KENYA Quick Heal Technologies Quick Heal T
Slide 8: Strategy and Outlook
STRATEGY AND OUTLOOK • Work ongoing on several new technologies such as • Develop product for IoT and home upcoming platforms like • Focus on international security automation Androids, Windows, expansion through Linux, iOS to address • Has 4 US patents to consistent brand opportunities in its credi
Slide 9: Q3 & 9M FY17 Results Highlights
Q3 & 9M FY17 RESULTS HIGHLIGHTS 9M FY17 YoY ANALYSIS In Rs. Million REVENUES EBITDA and EBITDA MARGIN PAT and PAT MARGIN CASH PROFIT 2,088.9 24.3% 25.6% 537.9 1,897.2 14.9% 535.7 11.3% 388.2 460.5 310.3 214.5 10 % 16 % 45 % 39 % 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 9M FY16 9M FY17 EBIDTA
Slide 10: Q3 & 9M FY17 – Revenue Analysis
Q3 & 9M FY17 – REVENUE ANALYSIS In Rs. Million Q3 FY17 YoY ANALYSIS 9M FY17 YoY ANALYSIS SEGMENT BREAKUP * SEGMENT BREAKUP * 2,296.8 604.0 597.3 2,085.9 62.7 20.9 31.0 40.0 369.8 281.6 57 % 99.3 48 % 113.0 31 % 14% 1,764.3 1,864.3 483.8 453.4 6% 6% Q3 FY16 Q3 FY17 9M FY16 9M FY17 % Share Q3 FY16 Q3
Slide 11: Q3 & 9M FY17 – Revenue Analysis: Licenses Sold
Q3 & 9M FY17 – REVENUE ANALYSIS Q3 FY17 YoY ANALYSIS 9M FY17 YoY ANALYSIS NUMBER OF LICENSES SOLD (‘000) NUMBER OF LICENSES SOLD (‘000) 4,309 1,106 1,128 4,071 105 46 47 87 653 471 174 3% 198 21 % 14 % 39 % 3,512 3,551 886 883 0.4 % 1% Q3 FY16 Q3 FY17 9M FY16 9M FY17 % Share Q3 FY16 Q3 FY17 % Share
Slide 12: Q3 & 9M FY17 – Employee Breakup
Q3 & 9M FY17 – EMPLOYEE BREAKUP December 2015 – 1,376 September 2016 – 1,402 December 2016 – 1,388 Sales & Marketing R&D Technical Support 220 208 210 Others 371 382 394 241 262 265 548 521 544 12
Slide 13: Consolidated Results – Profit & Loss
Q3 & 9M FY17 CONSOLIDATED RESULTS – PROFIT & LOSS Rs Million Consolidated Head Q3 FY17,a Q3 FY16,a Growth % Change 9M FY17,a 9M FY16,a Growth % Change Revenue 545.5 554.1 -8.6 -1.5% 2,088.9 1,897.2 191.7 10.1% Direct Cost 48.4 66.3 17.8 26.9% 181.3 194.5 13.3 6.8% Gross profit 497.1 487.9 9.3 1.9% 1
Slide 14: Consolidated Results – Cost Breakup
Q3 & 9M FY17 CONSOLIDATED RESULTS – COST BREAKUP Rs Million Consolidated Head Q3 FY17,a Q3 FY16,a Q2 FY17,a Operating Cost Salaries 118.7 109.7 122.4 Fees for technical services 24.9 24.3 25.2 Technology subscription charges 13.6 13.4 16.2 R&D Expenses (A) 157.3 147.3 163.8 Salaries 80.5 55.9 78.8 A
Slide 15: Consolidated Results – Ratio Analysis
Q3 & 9M FY17 CONSOLIDATED RESULTS – RATIO ANALYSIS Ratio Analysis Consolidated Head Q3 FY17,a Q3 FY16,a 9M FY17,a 9M FY16,a Expenses Direct Cost / Revenue 8.9% 12.0% 8.7% 10.3% R&D / Revenue 28.8% 26.6% 23.0% 23.0% S&M / Revenue 30.3% 36.1% 22.0% 25.2% G&A / Revenue 26.2% 21.4% 20.7% 17.3% Total Cos
Slide 16: Standalone Results – Profit & Loss
Q3 & 9M FY17 STANDALONE RESULTS – PROFIT & LOSS Rs Million Standalone Head Q3 FY17, a Q3 FY16, a Growth % Change 9M FY17, a 9M FY16, a Growth % Change Revenue 542.8 539.6 3.2 0.6% 2,082.2 1,868.2 214.0 11.5% Direct Cost 46.0 54.5 8.4 15.5% 171.0 171.2 0.2 0.1% Gross profit 496.8 485.2 11.6 2.4% 1,91
Slide 17: Standalone – Ratio Analysis
Q3 & 9M FY17 STANDALONE – RATIO ANALYSIS Ratio Analysis Standalone Head Q3 FY17, a Q3 FY16, a 9M FY17, a 9M FY16, a Expenses Direct Cost / Revenue 8.5% 10.1% 8.2% 9.2% R&D / Revenue 29.0% 27.3% 23.0% 23.3% S&M / Revenue 28.0% 35.0% 20.2% 24.0% G&A / Revenue 25.5% 21.0% 20.2% 17.0% Total Cost / Reven
Slide 18: Working Capital Analysis
Q3 & 9M FY17 – WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS – DECEMBER 2016 7 34 83 56 Receivables Days Inventory Days Payables Days Net Working Capital Days Note: Net Working Capital Days = (Net Working Capital / (Second Quarter Sales + Third Quarter Sales))* 182 days Calculation is based on n
Slide 19: Consolidated Results – Balance Sheet
Q3 & 9M FY17 CONSOLIDATED RESULTS – BALANCE SHEET Particulars (In Rs Mn) Dec-16 Dec-15 Particulars (In Rs Mn) Dec-16 Dec-15 Share Holders’ Funds: Non-Current Assets: Property, plant and equipment 1,850.8 1,352.6 Equity Share Capital 700.9 622.4 Capital work-in-progress 126.3 528.7 Reserves And Surpl
Slide 20: Standalone Results – Balance Sheet
Q3 & 9M FY17 STANDALONE RESULTS – BALANCE SHEET Particulars (In Rs Mn Dec-16 Dec-15 Particulars (In Rs Mn) Dec-16 Dec-15 Non-Current Assets: Share Holders’ Funds: Property, plant and equipment 1,848.7 1,351.7 Equity Share Capital 700.9 622.4 Capital work-in-progress 126.2 528.3 Other Intangible asse
Slide 21: Shareholding Structure
SHAREHOLDING STRUCTURE Public, 17.39 Institutions, 9.74 % Shareholding – December 2016 Promoter & Promoter Group, 72.87 Source – BSE 21
Slide 22: For Further Queries
FOR FURTHER QUERIES Mr Rajesh Ghonasgi Nilesh Dalvi Quick Heal Technologies Limited Dickenson Seagull IR CFO IR Consultant Email ID: rajesh.ghonasgi@quickheal.co.in Email ID: nilesh.dalvi@dickensonir.com Contact No: +91 (20) 6681 3232 Contact No:+91 9819289131 22
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