Quick Heal Technologies Ltd. · NSE:QUICKHEAL
Quick Heal Technologies — Q4 FY2017 Earnings Presentation
28 slides from Quick Heal Technologies's earnings presentation, May 2017
Slide 1: Q4 & FY17 – Results Update
Quick Heal Technologies Limited Q4 & FY17 – Results Update May 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 • KEY HIGHLIGHTS • COMPANY OVERVIEW • STRATEGY & OUTLOOK • Q4 & FY17 RESULT ANALYSIS • Q4 & FY17 FINANCIALS • SHAREHOLDING STRUCTURE 3
Slide 4: Key Highlights – Moving in Right Direction
KEY HIGHLIGHTS – MOVING IN RIGHT DIRECTION STEADY GROWTH DESPITE ECONOMIC CHALLENGES • Difficult business environment in H2 FY17 post ‘Demonetisation’; however active licenses witnessed steady growth from 7.3 mn as on Mar-16 to 7.8 mn as on Mar-17 • Active Retail licenses grew by 9.3% to 6.6 mn • Ac
Slide 5: Key Highlights – Recent Cyber Attacks
KEY HIGHLIGHTS – RECENT CYBER ATTACKS GOVERNMENT AND RECENT CYBER EVENTS IMPACT IMPACT QUICK HEAL INITIATIVES Debit Cards of 3.2 mn 90 ATMs have been Govt. Of India launched Cyber CERT-In will work with banks to customers hacked in May 2016 compromised and ~ 641 Swachhta Kendra in partnership detect
Slide 6: Key Highlights – 'Cyber Swachhta Kendra' Project
KEY HIGHLIGHTS – ‘CYBER SWACHHTA KENDRA’ PROJECT QUICK HEAL COLLABORATES WITH CERT-IN FOR ‘CYBER SWACHHTA KENDRA’ What is a ‘Botnet’? • ~ 50% of PCs and laptops in India do not have a security software installed • Botnet is a group of computers controlled by cybercriminals to spread malware and laun
Slide 7: 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 8: Company Overview – Strong Brand Recognition and Recall
COMPANY OVERVIEW STRONG BRAND RECOGNITION AND RECALL 7.8 m 1.8x 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 15,093 Retail, 491 Enterprise, 102 Government and 1,660 M
Slide 9: Company Overview – Technology & Market Leadership
COMPANY OVERVIEW TECHNOLOGY & MARKET LEADERSHIP International Certificates Awards in India • 2017: Quick Heal Total Security for Android (v2.01) gives 100% malware detection – Latest AV-Test results. • 2016: Seqrite Endpoint Security (EPS) and Quick Heal Total Security recognized as a ‘Top Product’
Slide 10: Company Overview – Large and Growing User Base
COMPANY OVERVIEW LARGE AND GROWING USER BASE ACTIVE LICENSES (‘000) Retail Enterprise & Government Mobile 7,847 7,847 7,323 123 7,323 279 1,112 6,317 994 5,450 4,386 6,612 6,050 MAR-13 MAR-14 MAR-15 MAR-16 MAR-17 MAR-16 MAR-17 10
Slide 11: Company Overview – Extensive Reach & Presence
COMPANY OVERVIEW EXTENSIVE REACH & PRESENCE Quick Heal – 63 offices & warehouses across 35 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 12: 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 13: Q4 & FY17 Results Highlights
Q4 & FY17 RESULTS HIGHLIGHTS FY17 YoY ANALYSIS In Rs. Million REVENUES * EBITDA and EBITDA MARGIN PAT and PAT MARGIN # CASH PROFIT @ 879.5 3,020.9 2,999.7 33.7% 19.2% 19.0% 816.3 30.0% 1,019.2 579.2 570.0 901.4 0.7 % 12 % 1.6 % 8% FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 EBIDTA EBIDTA Margin % PAT PA
Slide 14: Q4 & FY17 – Revenue Analysis
Q4 & FY17 – REVENUE ANALYSIS In Rs. Million Q4 FY17 YoY ANALYSIS FY17 YoY ANALYSIS SEGMENT BREAKUP * SEGMENT BREAKUP * 1,294.8 3,380.7 3,329.8 21.4 61.4 85.7 155.6 1,033.1 437.1 569.6 22.7 40 % 6% 188.1 30 % 1,117.8 21 % 2,882.2 2,674.6 822.3 7% 26 % Q4 FY16 Q4 FY17 FY16 FY17 % Share Q4 FY16 Q4 FY17
Slide 15: Q4 & FY17 – Revenue Analysis (Licenses Sold)
Q4 & FY17 – REVENUE ANALYSIS Q4 FY17 YoY ANALYSIS FY17 YoY ANALYSIS NUMBER OF LICENSES SOLD (‘000) NUMBER OF LICENSES SOLD (‘000) 2,744 6,831 145 6,222 41 452 923 126 52 % 13 % 913 1,913 20 261 42 % 1% 2,251 5,763 5,183 1,632 27 % 10 % Q4 FY16 Q4 FY17 FY16 FY17 % Share Q4 FY16 Q4 FY17 % Share FY16 F
Slide 16: Q4 & FY17 – Revenue Analysis (Dealer Concentration)
Q4 & FY17 – REVENUE ANALYSIS FY16 FY17 DEALER CONCENTRATION PROFILE DEALER CONCENTRATION PROFILE % of Total Revenues % of Total Revenues 47% 45% 36% 33% 8% 8% Top 1 Top 10 Top 20 Top 1 Top 10 Top 20 16
Slide 17: Q4 & FY17 – Employee Breakup
Q4 & FY17 – EMPLOYEE BREAKUP March 2016 – 1,392 December 2016 – 1,388 March 2017 – 1,374 Sales & Marketing R&D Technical Support 218 208 208 Others 370 394 396 249 265 276 521 494 555 17
Slide 18: Q4 & FY17 – Cost Analysis
Q4 & FY17 – COST ANALYSIS Rs Million Consolidated Head Q4 FY17,a Q3 FY17,a Q2 FY17,a Q1 FY17, a Q4 FY16, a Operating Cost Salaries 116.5 118.7 122.4 120.8 109.6 Fees for technical services 24.9 24.9 25.2 25.1 19.0 Technology subscription charges 14.2 13.6 16.2 12.8 25.7 R&D Expenses (A) 155.6 157.3
Slide 19: Q4 & FY17 – Working Capital Analysis
Q4 & FY17 – WORKING CAPITAL ANALYSIS WORKING CAPITAL ANALYSIS – MARCH 2017 7 36 86 57 Receivables Days Inventory Days Payables Days Net Working Capital Days Note: Net Working Capital Days = (Net Working Capital / Fourth Quarter Sales * 91 days Calculation is based on net revenues before adjusting fo
Slide 20: Q4 & FY17 – Tactical Marketing Campaigns
Q4 & FY17 – TACTICAL MARKETING CAMPAIGNS QUICK HEAL ASSOCIATES WITH RISING PUNE SUPERGIANT IPL TEAM AS ‘SECURITY PARTNER’ • Quick Heal rolled out IPL (Indian Premier League) themed campaign across OOH, digital and social media channels • Quick Heal has the rights to feature Rising Pune Supergiant (R
Slide 21: Consolidated Results – Profit & Loss
Q4 & FY17 CONSOLIDATED RESULTS – PROFIT & LOSS Rs Million Consolidated Head Q4 FY17,a Q4 FY16,a Growth % Change FY17,a FY16,a Growth % Change Revenue 921.7 1,123.7 -202.0 -18.0% 2,999.7 3,020.9 -21.2 -0.7% Direct Cost 59.8 83.9 24.1 28.7% 230.2 278.4 48.2 17.3% Gross profit 861.9 1,039.8 -177.9 -17.
Slide 22: Consolidated Results – Ratio Analysis
Q4 & FY17 CONSOLIDATED RESULTS – RATIO ANALYSIS Ratio Analysis Consolidated Head Q4 FY17,a Q4 FY16,a FY17,a FY16,a Expenses Direct Cost / Revenue 6.5% 7.5% 7.7% 9.2% R&D / Revenue 16.9% 13.7% 21.2% 19.5% S&M / Revenue 22.4% 19.5% 24.3% 23.8% G&A / Revenue 14.6% 9.6% 16.8% 13.7% Total Cost / Revenue
Slide 23: Consolidated Results – Balance Sheet
Q4 & FY17 CONSOLIDATED RESULTS – BALANCE SHEET Particulars (In Rs Mn) Mar-17 Mar-16 Particulars (In Rs Mn) Mar-17 Mar-16 Non-Current Assets: Share Holders’ Funds: Property, plant and equipment 1,782.2 1,323.5 Equity Share Capital 701.0 700.3 Capital work-in-progress 135.9 550.6 Other Intangible asse
Slide 24: Standalone Results – Profit & Loss
Q4 & FY17 STANDALONE RESULTS – PROFIT & LOSS Rs Million Standalone Head Q4 FY17, a Q4 FY16, a Growth % Change FY17, a FY16, a Growth % Change Revenue 918.9 1,116.6 -197.7 -17.7% 2,990.2 2,984.9 5.3 0.2% Direct Cost 57.1 82.1 25.0 30.5% 217.2 253.2 36.0 14.2% Gross profit 861.8 1,034.6 -172.7 -16.7%
Slide 25: Standalone Results – Ratio Analysis
Q4 & FY17 STANDALONE RESULTS – RATIO ANALYSIS Ratio Analysis Standalone Head Q4 FY17, a Q4 FY16, a FY17, a FY16, a Expenses Direct Cost / Revenue 6.2% 7.3% 7.3% 8.5% R&D / Revenue 16.9% 13.3% 21.2% 19.6% S&M / Revenue 21.4% 18.4% 22.8% 22.6% G&A / Revenue 13.9% 9.8% 16.2% 13.5% Total Cost / Revenue
Slide 26: Standalone Results – Balance Sheet
Q4 & FY17 STANDALONE RESULTS – BALANCE SHEET Particulars (In Rs Mn) Mar-17 Mar-16 Particulars (In Rs Mn) Mar-17 Mar-16 Non-Current Assets: Share Holders’ Funds: Property, plant and equipment 1,780.7 1,321.6 Equity Share Capital 701.0 700.3 Capital work-in-progress 135.9 550.2 Share application money
Slide 27: Shareholding Structure
SHAREHOLDING STRUCTURE Public, 17.78 Institutions, 9.43 % Shareholding – March 2017 Promoter & Promoter Group, 72.79 Source – BSE 27
Slide 28: For Further Queries
FOR FURTHER QUERIES Mr Rajesh Ghonasgi Nilesh Dalvi / Vatsal Mehta 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 vatsal.Mehta@dickensonir.com Contact No:+91 981928
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