Quick Heal declines after PAT drops 99% YoY in Q3 FY25

Quick Heal Technologies slipped 3.05% to Rs 433.65 after the company's consolidated net profit tumbled 98.91% to Rs 0.11 crore on 12.26% decline in total income to Rs 75.52 crore in Q3 FY25 over Q3 FY24.

The company reported a pre-tax loss of Rs 2.31 crore in the December 2024 quarter as compared with a pre-tax profit of Rs 12.53 crore posted in Q3 FY24.

The company reported a negative EBITDA of Rs 3.8 crore in Q3 FY25, compared to an EBITDA of Rs 11.6 crore in the same quarter previous year.

The firm recorded a negative EBITDA margin of 5.3% in Q3 FY25, compared to 14.2% registered in the corresponding quarter last year.

Total expense rose 5.83% YoY to Rs 77.83 crore during the quarter. Employee benefits expense stood at Rs 45.16 crore (up 3.06% YoY), while other expense was at Rs 27.54 crore (up 12.64% YoY) during the period under review.

Vishal Salvi, chief executive officer, Quick Heal Technologies, said, We are starting to witness successful execution of our strategic initiatives and the growing momentum in our new product pipeline. The Pan-India market launch of AntiFraud.AI, coupled with the introduction of our Annual Threat Report at the AISS event, demonstrates our thought leadership in the cybersecurity domain.

Additionally, the launch of SMAP (Seqrite Malware Analysis Platform) and Threat Intelligence (TI) solutions, along with the first order for TI, reflects our ability to address evolving customer needs. With the recent release of the draft DPDP provisions, we are witnessing a surge in interest as our Seqrite Data Privacy products are well-positioned to capitalize on the new regulations. Our focus on innovation and strategic hirings in mid-management positions us well for sustained growth as we continue to deliver cutting-edge cybersecurity solutions.

Ankit Maheshwari, chief financial officer, Quick Heal Technologies, said, We have witnessed headwinds in the consumer business and government vertical resulting in muted performance in the quarter. We have made conscious investments in the Horizon-3 product launches and the marketing launch of the AntiFraud product.

I am happy to state that we have launched the new product in the Horizon-3 category as we had committed. While it might have impacted the profitability in the short term, which is Q3, these are long-term investments made towards our growth journey for the future. We are experiencing a structural shift in our business, with a growing confirmed order book standing at 7.18 crores as against 35 lacs at the end of Q2.

Meanwhile, the company announced that its board has reappointed Kailash Sahebrao Katkar as Managing Director (MD) and Sanjay Sahebrao Katkar as Joint Managing Director, effective from 1 April 2025.

Quick Heal Technologies is engaged in the business of providing security software products. The company caters to both domestic and international markets.

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