QUICK HEAL TECHNOLOGIES 2020-21 Annual Report Analysis

Wed, 31 Mar

QUICK HEAL TECHNOLOGIES has announced its results for the year ended March 2021. Let us have a look at the detailed performance review of the company during FY20-21.

QUICK HEAL TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 16.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 50.6% YoY during the fiscal. Operating profit margins witnessed a fall and down at 41.3% in FY21 as against 31.9% in FY20.
• Depreciation charges decreased by 10.1% increased by 0.0% YoY, respectively.
• Other income declined by 11.5% YoY.
• Net profit for the year grew by 43.8% YoY.
• Net profit margins during the year grew from 26.0% in FY20 to 32.1% in FY21.

QUICK HEAL TECHNOLOGIES Income Statement 2020-21

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Net Sales	Rs m	2,861	3,330	16.4%
Other income	Rs m	316	280	-11.5%
Total Revenues	Rs m	3,177	3,610	13.6%
Gross profit	Rs m	914	1,377	50.6%
Depreciation	Rs m	217	195	-10.1%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	1,013	1,461	44.2%
Tax	Rs m	269	392	45.6%
Profit after tax	Rs m	744	1,070	43.8%
Gross profit margin	%	31.9	41.3
Effective tax rate	%	26.6	26.8
Net profit margin	%	26.0	32.1

Revealing on April 30: Are You Ready for the Upcoming Election Surprise?

QUICK HEAL TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY21 stood at Rs 740 million as compared to Rs 501 million in FY20, thereby witnessing an increase of 47.8%.
• Current assets rose 32% and stood at Rs 6 billion, while fixed assets fell 9% and stood at Rs 2 billion in FY21.
• Overall, the total assets and liabilities for FY21 stood at Rs 8 billion as against Rs 7 billion during FY20, thereby witnessing a growth of 19%.

QUICK HEAL TECHNOLOGIES Balance Sheet as on March 2021

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*	% Change
Networth	Rs m	6,417	7,485	16.6
Current Liabilities	Rs m	501	740	47.8
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	6,940	8,267	19.1
Current assets	Rs m	4,787	6,315	31.9
Fixed Assets	Rs m	2,153	1,952	-9.3
Total Assets	Rs m	6,940	8,267	19.1

QUICK HEAL TECHNOLOGIES Cash Flow Statement Analysis

• QUICK HEAL TECHNOLOGIES's cash flow from operating activities (CFO) during FY21 stood at Rs 989 million, an improvement of 40.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY21 stood at Rs -925 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY21 stood at Rs 1 million, an improvement of 100% on a YoY basis.
• Overall, net cash flows for the company during FY21 stood at Rs 64 million from the Rs -29 million net cash flows seen during FY20.

QUICK HEAL TECHNOLOGIES Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-20	Mar-21
Cash Flow from Operating Activities	Rs m	706	989	40.1%
Cash Flow from Investing Activities	Rs m	1,477	-925	-
Cash Flow from Financing Activities	Rs m	-2,214	1	-
Net Cash Flow	Rs m	-29	64	-

Current Valuations for QUICK HEAL TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 16.7, an improvement from the EPS of Rs 11.6 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 186.6, stands at 10.1 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 1.4 times, while the price to sales ratio stands at 3.6 times.
• The company's price to cash flow (P/CF) ratio stood at 7.5 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Sales per share (Unadj.)	Rs	44.6	51.9
TTM Earnings per share	Rs	11.6	16.7
Diluted earnings per share	Rs	12.8	18.4
Price to Cash Flow	x	4.9	7.5
TTM P/E ratio	x	6.3	10.1
Price / Book Value ratio	x	1.5	1.3
Market Cap	Rs m	9,725	9,484
Dividends per share (Unadj.)	Rs	4.0	4.0

Ratio Analysis for QUICK HEAL TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 8.5x during FY21, from 9.6x during FY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 14.3% during FY21, from 11.6% during FY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 19.5% during FY21, from 15.8% during FY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 12.9% during FY21, from 10.7% during FY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-20*	12 Mar-21*
Current ratio	x	9.6	8.5
Debtors’ Days	Days	144	165
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.7	12.9
Return on equity	%	11.6	14.3
Return on capital employed	%	15.8	19.5

To see how QUICK HEAL TECHNOLOGIES has performed over the last 5 years, please visit here.

QUICK HEAL TECHNOLOGIES Share Price Performance

Over the last one year, QUICK HEAL TECHNOLOGIES share price has moved up from Rs 81.3 to Rs 186.6, registering a gain of Rs 105.4 or around 129.7%.

Meanwhile, the S&P BSE IT Index is trading at Rs 26,543.2 (down 0.7%). Over the last one year it has moved up from 12,842.7 to 26,543.2, a gain of 13,701 points (up 106.7%).

Overall, the S&P BSE SENSEX is up 74.1% over the year.

(To know more, check out historical annual results for QUICK HEAL TECHNOLOGIES and quarterly results for QUICK HEAL TECHNOLOGIES)

Read: Latest Annual Report Analysis of QUICK HEAL TECHNOLOGIES