QUICK HEAL TECHNOLOGIES 2021-22 Annual Report Analysis

Sun, 7 Aug

QUICK HEAL TECHNOLOGIES has announced its results for the year ended March 2022. Let us have a look at the detailed performance review of the company during FY21-22.

QUICK HEAL TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 2.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 22.4% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 31.3% in FY22 as against 41.3% in FY21.
• Depreciation charges decreased by 10.8% increased by 0.0% YoY, respectively.
• Other income declined by 31.4% YoY.
• Net profit for the year declined by 22.2% YoY.
• Net profit margins during the year declined from 32.1% in FY21 to 24.3% in FY22.

QUICK HEAL TECHNOLOGIES Income Statement 2021-22

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Net Sales	Rs m	3,330	3,419	2.7%
Other income	Rs m	280	192	-31.4%
Total Revenues	Rs m	3,610	3,611	0.0%
Gross profit	Rs m	1,377	1,069	-22.4%
Depreciation	Rs m	195	174	-10.8%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	1,461	1,087	-25.6%
Tax	Rs m	392	255	-34.9%
Profit after tax	Rs m	1,070	832	-22.2%
Gross profit margin	%	41.3	31.3
Effective tax rate	%	26.8	23.5
Net profit margin	%	32.1	24.3

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QUICK HEAL TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY22 stood at Rs 862 million as compared to Rs 740 million in FY21, thereby witnessing an increase of 16.4%.
• Current assets fell 15% and stood at Rs 5 billion, while fixed assets fell 7% and stood at Rs 2 billion in FY22.
• Overall, the total assets and liabilities for FY22 stood at Rs 7 billion as against Rs 8 billion during FY21, thereby witnessing a fall of 13%.

QUICK HEAL TECHNOLOGIES Balance Sheet as on March 2022

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*	% Change
Networth	Rs m	7,485	6,206	-17.1
Current Liabilities	Rs m	740	862	16.4
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	8,267	7,159	-13.4
Current assets	Rs m	6,315	5,346	-15.3
Fixed Assets	Rs m	1,952	1,813	-7.1
Total Assets	Rs m	8,267	7,159	-13.4

QUICK HEAL TECHNOLOGIES Cash Flow Statement Analysis

• QUICK HEAL TECHNOLOGIES's cash flow from operating activities (CFO) during FY22 stood at Rs 808 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY22 stood at Rs 1 billion on a YoY basis.
• Cash flow from financial activities (CFF) during FY22 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY22 stood at Rs -86 million from the Rs 64 million net cash flows seen during FY21.

QUICK HEAL TECHNOLOGIES Cash Flow Statement 2021-22

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-21	Mar-22
Cash Flow from Operating Activities	Rs m	986	808	-18.0%
Cash Flow from Investing Activities	Rs m	-923	1,248	-
Cash Flow from Financing Activities	Rs m	1	-2,142	-
Net Cash Flow	Rs m	64	-86	-

Current Valuations for QUICK HEAL TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 14.3, an decline from the EPS of Rs 16.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 208.9, stands at 15.7 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 2.0 times, while the price to sales ratio stands at 3.5 times.
• The company's price to cash flow (P/CF) ratio stood at 14.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Sales per share (Unadj.)	Rs	51.9	58.9
TTM Earnings per share	Rs	16.7	14.3
Diluted earnings per share	Rs	18.4	14.3
Price to Cash Flow	x	8.6	14.2
TTM P/E ratio	x	10.1	15.7
Price / Book Value ratio	x	1.3	2.3
Market Cap	Rs m	9,484	14,231
Dividends per share (Unadj.)	Rs	4.0	4.5

Ratio Analysis for QUICK HEAL TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 6.2x during FY22, from 8.5x during FY21. 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 declined and down at 13.4% during FY22, from 14.3% during FY22. 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 declined and down at 17.5% during FY22, from 19.5% during FY21. 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 declined and down at 11.6% during FY22, from 12.9% during FY21. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-21*	12 Mar-22*
Current ratio	x	8.5	6.2
Debtors’ Days	Days	17	18
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	12.9	11.6
Return on equity	%	14.3	13.4
Return on capital employed	%	19.5	17.5

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 down from Rs 299.0 to Rs 208.9, registering a loss of Rs 90.1 or around 30.1%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,386.3 (up 0.7%). Over the last one year it has moved down from 31,677.6 to 30,386.3, a loss of 1,291 points (down 4.1%).

Overall, the S&P BSE SENSEX is up 7.4% 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