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Quick Heal Technologies Ltd.

BSE: 539678 Sector: IT
NSE: QUICKHEAL ISIN Code: INE306L01010
BSE LIVE 14:45 | 24 Aug 176.05 -1.10
(-0.62%)
OPEN

177.00

HIGH

178.85

LOW

176.05

NSE 14:23 | 24 Aug 177.35 0.60
(0.34%)
OPEN

177.05

HIGH

179.00

LOW

176.85

OPEN 177.00
PREVIOUS CLOSE 177.15
VOLUME 24013
52-Week high 295.85
52-Week low 172.75
P/E 23.82
Mkt Cap.(Rs cr) 1,236
Buy Price 176.00
Buy Qty 38.00
Sell Price 176.30
Sell Qty 15.00
OPEN 177.00
CLOSE 177.15
VOLUME 24013
52-Week high 295.85
52-Week low 172.75
P/E 23.82
Mkt Cap.(Rs cr) 1,236
Buy Price 176.00
Buy Qty 38.00
Sell Price 176.30
Sell Qty 15.00

Quick Heal Technologies Ltd. (QUICKHEAL) - Chairman Speech

Company chairman speech

Dear Shareholders

FY2016 was a successful year as we grew our business built and introduced new productsand advanced our key strategic initiatives. This enabled us to improve our competitivenessand create value for shareholders.

I feel exceptionally privileged to work with such talented people at Quick Heal. Ourmanagement team and our employees do outstanding work every single day sometimes underenormous work pressure while dealing with an extreme number of complex business andregulatory issues. The way our people and our firm are able to address our challengeswhile continuing to grow our businesses and support our clients fills me with pride. Inspite of a challenging market environment our Company never stopped supporting clientsand make a positive impact on our communities.

Our Initial Public Offering in (IPO) in February 2016 was over-subscribed 11 times. Wethank our retail and institutional investors for the excellent response to the offeringand for making the IPO a grand success. We are humbled by your continued support andconfidence and would like to reaffirm our commitment to you.

Led by our long-term vision to become a global leader in brands and technologiesguided by our values and with an inspired team we continued to implement our strategy.Our clear focus has been to deliver strong performance despite a highly volatile andchallenging business environment.

Our Financial Performance

FY2016 was an excellent year for Quick Heal. We achieved strong financial performancecontinued to successfully implement our strategy and laid a strong foundation for thefuture. Robust growth was displayed across all customer segments. Our Revenues grew 18%YoY at? 3380.7 million. Revenue from Retail Enterprise & Government and Mobilesegments accounted for 85.1% 13.3% and 1.6% of the total revenues displaying a growth of16% 21% and 397% respectively. Our EBITDA grew 12% YoY at ' 1024.6 million whileProfit After Tax grew 9% at ' 584.0 million. Our total number of licenses sold grew 22%during the year at 6.86 million. Licenses sold to Retail Enterprise & Government andMobile segments stood at 5.76 million 0.92 million and 0.18 million displaying a growthof 18% 34% and 225% respectively.

We incurred expenses of ' 599.6 million during the year towards R&D. We have aconservative approach to expense out our R&D cost. We also hope to gain the benefitsof R&D expenses in the coming years as we witness growth in mobile and handhelddevices segments. The Board approved a total dividend payout of ' 175 million for the yearunder review (excluding dividend tax of ' 35 million). This translates into a dividend of' 2.50 per equity share with face value of ' 10 amounting to a total dividend payoutratio of 36.1% of PAT.

Excellence is our Passion

Strong brands are the backbone of our business. We have established a proven trackrecord of execution since two decades and are further expanding our user base throughcustomised offerings and new products to address emergent needs and bring value to thecustomer. We are a highly differentiated IP-driven IT company that has built its successon its IP protected products. Our business model is about creating quantum revenue growthfree cash flows and profits disproportionate to our cost structure. We are in thebusiness of selling standard software solutions to millions of users not bound bygeographical limitations. Our commitment to innovation is reflected in high innovationrates across all businesses.

We continue to build our business by investing in infrastructure systems technologyand new products. Our new generation security software solutions are designed to meetdiverse enterprise requirements available across multiple price points and usage. Havingcemented our market position in the Consumer segment with a comprehensive productportfolio we are taking full advantage of our R&D expertise to build a strongplatform and make deep inroads into the institutional segment. We also expect the MobilePhones and Handheld Devices segments to be a key future growth driver. The marketpotential in this segment is vast given that Smartphone sales are seen rising from 90million in 2013 to 339 million in 2017 translating into a CAGR of 39%.

In addition to desktop and mobile security we also offer end-point securitycloud-based mobile device management and a host of other solutions. Furthermore oursolutions are available across a wide range of platforms Windows Mac Android iOS andLinux and across various devices Desktops Laptops Mobiles and Tablets. We have anextensive pan-India distribution network to reach end-customers in India.

Strategic Goals for FY2017

We aim to expand our existing product offerings and offer differentiated solutions tocustomers thereby strengthening our overall brand presence in India and globally and willcontinue to retain and expand our user base. We are currently identifying new SMBopportunities increasing our engagement with channel partners and expandinginternationally by strengthening our brand presenc e. We also intend to use consulting andtraining in the area of security to explore new avenues and build a new line of businesswithin Quick Heal.

Moving Ahead

The task ahead is simple to state: It is to enhance our market competitiveness andachieve industry leading growth and margins. In addition to increasing our competitiveadvantages and pricing power we are focusing on making long-term investments in buildingstrong R&D capabilities. We aim to improve the agility of our company and sharpen theaccountability of our business units projects and individuals to deliver results.

The enthusiasm commitment energy and hard work of every employee at Quick HealTechnologies Limited to achieve these goals is evident. Everyone is fully committed to ourtargets and we will continue to implement our strategy to deliver excellent performance.

We thank you our dear shareholders for your wholehearted and unflinching support. Youhave bestowed us with the conviction strength and courage to prepare for and face thefuture. As we march ahead we know we can continue to rely on your support to strengthenus in India and across the world.

With Regards

Mr. Kailash Katkar

Managing Director & CEO