QUICK HEAL TECHNOLOGIES 2022-23 Annual Report Analysis

Mon, 24 Jul

QUICK HEAL TECHNOLOGIES has announced its results for the year ended March 2023. Let us have a look at the detailed performance review of the company during FY22-23.

QUICK HEAL TECHNOLOGIES Income Statement Analysis

• Operating income during the year fell 18.7% on a year-on-year (YoY) basis.
• The company's operating profit decreased by 97.3% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 1.0% in FY23 as against 31.3% in FY22.
• Depreciation charges decreased by 8.0% increased by 0.0% YoY, respectively.
• Other income grew by 16.6% YoY.
• Net profit for the year declined by 90.7% YoY.
• Net profit margins during the year declined from 24.3% in FY22 to 2.8% in FY23.

QUICK HEAL TECHNOLOGIES Income Statement 2022-23

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Net Sales	Rs m	3,419	2,781	-18.7%
Other income	Rs m	192	224	16.6%
Total Revenues	Rs m	3,611	3,005	-16.8%
Gross profit	Rs m	1,069	29	-97.3%
Depreciation	Rs m	174	160	-8.0%
Interest	Rs m	0	0	0.0%
Profit before tax	Rs m	1,087	93	-91.5%
Tax	Rs m	255	16	-93.8%
Profit after tax	Rs m	832	77	-90.7%
Gross profit margin	%	31.3	1.0
Effective tax rate	%	23.5	17.1
Net profit margin	%	24.3	2.8

Emerging Opportunity: Bluechip Bull Run

QUICK HEAL TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY23 down at Rs 715 million as compared to Rs 862 million in FY22, thereby witnessing an decrease of -17.0%.
• Current assets fell 40% and stood at Rs 3 billion, while fixed assets fell 6% and stood at Rs 2 billion in FY23.
• Overall, the total assets and liabilities for FY23 stood at Rs 5 billion as against Rs 7 billion during FY22, thereby witnessing a fall of 31%.

QUICK HEAL TECHNOLOGIES Balance Sheet as on March 2023

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*	% Change
Networth	Rs m	6,206	4,102	-33.9
Current Liabilities	Rs m	862	715	-17.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	7,159	4,929	-31.1
Current assets	Rs m	5,346	3,222	-39.7
Fixed Assets	Rs m	1,813	1,707	-5.9
Total Assets	Rs m	7,159	4,929	-31.1

QUICK HEAL TECHNOLOGIES Cash Flow Statement Analysis

• QUICK HEAL TECHNOLOGIES's cash flow from operating activities (CFO) during FY23 stood at Rs 310 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY23 stood at Rs 2 billion, an improvement of 50.2% on a YoY basis.
• Cash flow from financial activities (CFF) during FY23 stood at Rs -2 billion, an improvement of 1% on a YoY basis.
• Overall, net cash flows for the company during FY23 stood at Rs 63 million from the Rs -86 million net cash flows seen during FY22.

QUICK HEAL TECHNOLOGIES Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-22	Mar-23
Cash Flow from Operating Activities	Rs m	808	310	-61.7%
Cash Flow from Investing Activities	Rs m	1,248	1,875	50.2%
Cash Flow from Financing Activities	Rs m	-2,142	-2,122	-
Net Cash Flow	Rs m	-86	63	-

Current Valuations for QUICK HEAL TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 1.5, an decline from the EPS of Rs 14.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 152.5, stands at -123.9 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 2.9 times.
• The company's price to cash flow (P/CF) ratio stood at 39.6 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Sales per share (Unadj.)	Rs	58.9	52.4
TTM Earnings per share	Rs	14.3	1.5
Diluted earnings per share	Rs	15.7	1.5
Price to Cash Flow	x	9.4	39.6
TTM P/E ratio	x	11.3	-123.9
Price / Book Value ratio	x	2.3	2.3
Market Cap	Rs m	14,231	9,378
Dividends per share (Unadj.)	Rs	4.5	2.5

Ratio Analysis for QUICK HEAL TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 4.5x during FY23, from 6.2x during FY22. 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 1.9% during FY23, from 13.4% during FY23. 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 2.3% during FY23, from 17.5% during FY22. 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 1.6% during FY23, from 11.6% during FY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-22*	12 Mar-23*
Current ratio	x	6.2	4.5
Debtors’ Days	Days	18	16
Interest coverage	x	0.0	0.0
Debt to equity ratio	x	0.0	0.0
Return on assets	%	11.6	1.6
Return on equity	%	13.4	1.9
Return on capital employed	%	17.5	2.3

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 212.6 to Rs 152.5, registering a loss of Rs 60.1 or around 28.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 30,209.2 (up 0.4%). Over the last one year it has moved up from 28,729.5 to 30,209.2, a gain of 1,480 points (up 5.2%).

Overall, the S&P BSE SENSEX is up 20.4% over the year.

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