Release Date: October 18, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Quick Heal Technologies Ltd (BOM:539678, Financial) reported a robust 11% growth in revenue and a 238% growth in EBITDA for the first half of FY25.
- The company launched AntiFraud.AI, a groundbreaking innovation aimed at preventing financial frauds, marking a significant step in consumer protection.
- Quick Heal's products received multiple accolades, including a perfect score of 18 out of 18 for their endpoint security solution from AV-Test.
- The company secured a contract with one of the largest logistics companies to modernize their cybersecurity stack, showcasing their competitive edge.
- Quick Heal Technologies Ltd (BOM:539678) remains a cash-rich company, focused on creating long-term value for shareholders.
Negative Points
- The enterprise business experienced a sluggish quarter due to non-closure of key government orders, leading to dampened growth.
- There was a 6% year-on-year decline in revenue due to a flattish enterprise business and headwinds in the consumer segment.
- The company's margins have significantly decreased from over 30% to below 10% due to increased R&D spending and market challenges.
- Despite the launch of new products, the company has not provided specific revenue targets or guidance, leading to uncertainty about future financial performance.
- The consumer antivirus market is facing headwinds, with overall market degrowth impacting Quick Heal's consumer business.
Q & A Highlights
Q: What is the market potential for the AntiFraud product in India?
A: Vishal Salvi, CEO: The AntiFraud product is a first-of-its-kind in India, creating a new category in the space of AntiFraud. It addresses the growing challenges of fraud calls and fraudulent attempts faced by consumers. The product has a huge market potential, targeting any citizen with financial independence, given the 850 million mobile users in India.
Q: Who is the target segment for the AntiFraud product?
A: Vishal Salvi, CEO: The target segment includes any individual with financial independence who regularly conducts transactions, as they are potential victims of fraud. The product is mobile-first, aiming to reach the vast number of mobile users in India.
Q: Can you provide guidance on revenue and margins for this financial year?
A: Vishal Salvi, CEO: We do not provide specific guidance on revenue and margins. Our focus remains on profitable growth and long-term value creation. We are committed to releasing new solutions and products, as demonstrated by the launch of AntiFraud.AI.
Q: How does the AntiFraud.AI product differ from similar offerings by companies like Bharti Airtel?
A: Vishal Salvi, CEO: While Bharti Airtel focuses on scam alerts, our product offers a comprehensive 360-degree solution for fraud management, including cybersecurity features, banking process controls, and more, beyond just telecom-related scams.
Q: What led to the decline in margins from 30% to below 10% since FY22?
A: Vishal Salvi, CEO: The decline is due to reinvestment of margins into new technologies and increased R&D spending to develop new products. Ankit Maheshwari, CFO, added that headwinds in the consumer business also contributed to reduced revenues, impacting margins.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
