On behalf of our Board of Directors it is my pleasure to share the annual report ofthe Company for FY 2020-21 an eventful year in many ways. FY 2020-21 presentedunprecedented challenges with the COVID-19 pandemic and lockdown restrictions thatfollowed throughout the year. Despite these challenges we have delivered strong financialgrowth backed by robust top-line and bottom-line performance. I would like to thank ouremployees and partners for their relentless efforts and dedication as we continued todeliver the best-in-class security solutions to our customers. Our ongoing investments inbuilding newer capabilities and strengthening of the leadership team positions us well tolaunch next-generation solutions and build a solid foundation for the enterprise business.
In line with our philosophy of constantly rewarding shareholders during the lastquarter we announced buyback of equity shares which also fits with our robust capitalallocation policy and should be EPS accretive. Buyback is being undertaken by Quick Healafter considering the operational and strategic cash requirements of the Company in themedium term and for returning surplus funds to shareholders in effective and efficientmanner. The Board of Directors had also recommended a final dividend of _ 4 per equityshare with a face value of _ 10 per share for FY 2020-21 subject to shareholdersapproval in the ensuing annual general meeting. With this dividend of _ 4 per share thetotal payout ratio will be about 24% on the existing equity base.
our FInAncIAl PerForMAnce
In a challenging market environment we have delivered a strong financial performance.During the year our consolidated revenue from operations increased by 16% from _ 2861Million in FY 2019-20 to _ 3330 Million in FY 2020-21. The recovery is commendableconsidering business was severely impacted during the initial part of the year because ofthe lockdown restrictions. As the restrictions in economy were lifted business continuedto recover sequentially during the year. The recovery in the retail segment was strongerwith 24% increase in revenue while the enterprise segment grew by 9%. In case ofenterprise segment in the first two quarters of the year the Government spending wasless and the SME segment also faced some liquidity pressure. For the whole year 82%revenue came from retail and the balance 18% came from the enterprise segment. Our EBITDAgrew by 55% YoY to _ 1415 Million in FY 2021 versus _ 914 Million in FY 2020 mainly onaccount of top-line growth. We also reported healthy EBIDTA margins of 42.5% an increaseof 1054 bps over the previous year. PAT grew by 44% to _ 1070 Million versus _ 744Million during the previous year. The PAT margin for the year increased to 32% versus 26%in the last year.
trenDs In cYbersecurItY MArKet
The COVID-19 pandemic has ushered India into a new era of digitisation. A rise in theadoption of cloud platforms digital payments e-commerce and internet users countreaching almost 700 million has led to an increase in cyber threats targetingindividuals and businesses of all sizes. The shortage of skilled security workforce rapiddigital transformation compliance requirements and evolving nature of cyber-attackscontinue to be the most pressing cybersecurity challenges. Threat actors were quick tocapitalise on this opportunity by attacking new unprotected threat surfaces when millionsof employees were forced to work from home. Attacks like ransomware APTs supply-chainattacks continued to evolve and become more sophisticated while data breaches madeheadlines in India and across the world. All these factors are contributing to theevolution of the cybersecurity industry and a new-found demand for products and solutions.As we become more dependent on digital technologies for our personal and professionalrequirements cybersecurity will be as critical as the internet in the post Covid-19world.
MAKIng InvestMents buIlDIng cAPAbIlItIes
During the year we continued to build resilience and increase our competitiveadvantages in the marketplace by making right investments to build capabilities and investin people processes and technologies. Our enterprise arm Seqrite has recentlyintroduced Seqrite Hawkk a premium suite of next-generation cybersecuritysolutions aimed at empowering enterprises to secure their digital transformation journey.In the first phase Seqrite Hawkk will offer Seqrite HawkkEye a cloud-basedcentralised security management platform that will empower enterprises to manage multiplesecurity products from a single console. We will continue to invest and add more productsunder the Hawkk umbrella that will also mark the Seqrite brands foray into endpointdetection and response (EDR) zero trust data privacy and cloud-based network securityproducts. For our retail business we revamped our existing portfolio by launching newproducts backed by privacy protection and performance. The new suite has been designed tosafeguard consumer devices while securing personal data and protecting digital identities.It is equipped with industry leading features such as Anti-Ransomware Safe BankingAnti-Tracker Parental Control and Webcam Protection among others.
On the M&A side we have made an additional investment of USD 2 Million in L7Defense an Israel-based cybersecurity start-up after making an initial investment of USD3 Lakh in FY 2019-20. Since then L7 Defense has proven its unique capabilities in thearea of API security and next-generation web application firewall which gives usrationale to further increase our investment in this. This investment reiterates QuickHeals commitment to invest in disruptive technologies that will shape the future ofcybersecurity while supporting innovative startups.
covID-19 relIeF through csr InItIAtIves
COVID-19 is raging across India with a devastating impact. Isolation. Quarantine.Social Distancing. Masks. Lockdown. These are the words that we had to hear and had towork with during the COVID-19 pandemic. On the positive side the pandemic also meantresponsibility togetherness adaptation and opportunity. When our healthcare systems andfrontline workers are facing extreme challenges
Quick Heal Foundation came up with admirable ideas to achieve its mission andpositively impact the community while protecting them. As a part of our commitment torise to the occasion when the nation needed it the most Quick Heal Foundation undertookthe following COVID-19 relief initiatives:
Distributed free immunity booster medicines to frontline workers
Organised health camps and assisted in the smooth functioning of COVID-19 centres
Donated medical vans to NGOs to heal tribal population
Distributed food grains to the needy during lockdown
Distributed PPE kits to NGOs
Donated to PM Cares Fund
Quick Heal has done well in a challenging year by quickly adapting and innovating amongfluid business environment throughout the year and it is well positioned for the journeyahead. I would like to thank all our employees channel partners stakeholders regulatoryagencies and investors who continue to support us in the journey. Our talented employeeshave done a remarkable job of ensuring business continuity despite the multipledisruptions resulting from the COVID-19 pandemic and lockdowns. We remain confident thatwe will continue to invest and create value and opportunity for all our stakeholdersincluding customers partners shareholders and employees. We operate in a highly excitingand attractive market and we have the benefit of world-class people and technology allworking together to create innovative solutions. We are grateful to our Board of Directorsfor their guidance and support in these uncertain times. We thank you our dearshareholders for your whole-hearted and unflinching support. You have bestowed us withthe conviction strength and courage to prepare for and face the future. As we marchahead we know we can continue to rely on your support to strengthen us in India andacross the world.
Dr. Kailash Katkar
MD & CEO