Quick Heal in poor health after weak Q1 show

Quick Heal Technologies slumped 14.8% to Rs 254.65 after the software product company posted a 75% fall in consolidated net profit to Rs 6.18 crore on 25.4% decline in net sales to Rs 54.78 crore in Q1 FY22 over Q1 FY21.

Consolidated profit before tax tumbled 78.3% to Rs 7.35 crore in Q1 FY22 over Q1 FY21. EBITDA slumped 84% to Rs 52 crore in Q1 FY22 from Rs 321.36 crore in Q1 FY21. EBITDA margin tumbled to 9.49% in Q1 FY22 from 43.75% in Q1 FY21.

Quick Heal's retail segment revenue stood at Rs 42.8 crore as compared to Rs 66.8 crore in the corresponding period of the previous year. Enterprise and government segment revenue came at Rs 14.5 crore as compared to Rs 10.4 crore in the corresponding period previous year. Enterprise segment's contribution of 25% has been in line with the company's strategy to boost market share in this segment.

Kailash Katkar, MD & CEO of Quick Heal Technologies said, We have delivered good performance in yet another challenging quarter which was severely disrupted by the second wave of Covid-19.If the revenue spill over of Rs 28 crore in Q1 FY21 is left aside, we have registered double digit growth YoY. The growth in enterprise segment has been promising and we expect the momentum to continue in the coming quarters. Our accelerated efforts towards new product development are bearing positive fruit with 'Seqrite Hawkk' range of next-generation cybersecurity solutions making its debut with 'Seqrite HawkkEye'. With more product launches planned under the 'Seqrite Hawkk' umbrella, we are looking forward to explore future growth opportunities.

Nitin Kulkarni, chief financial officer of Quick Heal Technologies said, Our performance remains robust in challenging times of COVID-19 during the quarter. We continue to maintain financial discipline while growing our business to capitalise on the industry tailwinds with improved EBIDTA margins. The company enjoys comfortable liquidity position with strong balance sheet and cash in hand of Rs 296 crore and are rightly positioned to tap the growth opportunities.

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.

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