Quick Heal soars after stellar Q1 show

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Profit before tax came at Rs 33.8 crore in Q1 June 2020, steeply higher than Rs 16.11 crore in Q1 June 2019. Total tax expense jumped 110% to Rs 8.84 crore in Q1 June 2020 over Q1 June 2019. EBITDA soared 150% to Rs 32.1 crore in Q1 June 2020 from Rs 12.8 crore in Q1 June 2019. EBITDA margin improved to 43.75% in quarter ending June 2020 from 22.26% in quarter ending June 2019. The result was announced after market hours yesterday, 10 August 2020.

Retail segment revenue at Rs 66.80 crore compared with Rs 45.70 crore in the corresponding period of the previous year. Covid-19 and the lockdown that followed had reduced the overall buying from enterprises. Despite this headwind, the enterprise and government segment registered revenue of Rs 10.40 crore compared with Rs 14.60 crore in the corresponding period previous year.

Commenting on company Q1 performance, Kailash Katka, MD & CEO, Quick Heal Technologies said; "Even with the COVID-19 headwinds, we were able to deliver strong growth in the first quarter aided by revenue spill over from Q4FY20. Our flagship products ‘Seqrite Endpoint Security' and ‘Quick Heal Total Security' were recently recognised as top products by the Germany based AV-Test institute. The recognition is a testament to our focus on constant innovation and reinforces our ability to deliver superior protection and robust system performance across consumer and enterprise segments. With many Indian states gradually relaxing lockdown norms and situation expected to come back to normalcy supported by rising cybersecurity awareness, I'm optimistic about the growth prospects of the company."

Nitin Kulkarni, CFO, Quick Heal Technologies added, "We delivered strong revenue growth as well as better margins in Q1FY21 due to spill-over of revenue from Q4FY2020. However, non-availability of logistics and transport coupled with an extended lockdown in Q1FY21 affected our retail sales to some extent. Similarly, the overall demand in the enterprise segment has reduced considerably. Our balance sheet remains strong with zero debt and cash and cash equivalents balance of around Rs 387 cr."

Quick Heal Technologies is one of the leading providers of IT security and data protection solutions with a strong footprint in India and an evolving global presence.

Source: Capitalmarket.com