QUICK HEAL TECHNOLOGIES 2023-24 Annual Report Analysis

Mon, 19 Aug

QUICK HEAL TECHNOLOGIES has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

QUICK HEAL TECHNOLOGIES Income Statement Analysis

• Operating income during the year rose 4.9% on a year-on-year (YoY) basis.
• The company's operating profit increased by 833.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 6.0% in FY24 as against 0.7% in FY23.
• Depreciation charges decreased by 21.2% increased by 0.0% YoY, respectively.
• Other income declined by 3.3% YoY.
• Net profit for the year grew by 278.8% YoY.
• Net profit margins during the year grew from 2.3% in FY23 to 8.3% in FY24.

QUICK HEAL TECHNOLOGIES Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	2,781	2,918	4.9%
Other income	Rs m	221	214	-3.3%
Total Revenues	Rs m	3,002	3,131	4.3%
Gross profit	Rs m	19	176	833.5%
Depreciation	Rs m	160	126	-21.2%
Interest	Rs m	0	1	0.0%
Profit before tax	Rs m	80	262	226.8%
Tax	Rs m	16	20	21.6%
Profit after tax	Rs m	64	242	278.8%
Gross profit margin	%	0.7	6.0
Effective tax rate	%	20.2	7.5
Net profit margin	%	2.3	8.3

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QUICK HEAL TECHNOLOGIES Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 733 million as compared to Rs 719 million in FY23, thereby witnessing an increase of 1.9%.
• Current assets rose 12% and stood at Rs 4 billion, while fixed assets fell 14% and stood at Rs 1 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 5 billion as against Rs 5 billion during FY23, thereby witnessing a growth of 3%.

QUICK HEAL TECHNOLOGIES Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	4,102	4,270	4.1
Current Liabilities	Rs m	719	733	1.9
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	4,933	5,092	3.2
Current assets	Rs m	3,235	3,638	12.5
Fixed Assets	Rs m	1,698	1,454	-14.4
Total Assets	Rs m	4,933	5,092	3.2

QUICK HEAL TECHNOLOGIES Cash Flow Statement Analysis

• QUICK HEAL TECHNOLOGIES's cash flow from operating activities (CFO) during FY24 stood at Rs 182 million on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs 62 million on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs 16 million, an improvement of 101% on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs 259 million from the Rs 38 million net cash flows seen during FY23.

QUICK HEAL TECHNOLOGIES Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	308	182	-41.0%
Cash Flow from Investing Activities	Rs m	1,852	62	-96.7%
Cash Flow from Financing Activities	Rs m	-2,122	16	-
Net Cash Flow	Rs m	38	259	591.5%

Current Valuations for QUICK HEAL TECHNOLOGIES

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 4.5, an improvement from the EPS of Rs 1.2 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 597.4, stands at 78.3 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 7.5 times, while the price to sales ratio stands at 11.0 times.
• The company's price to cash flow (P/CF) ratio stood at 52.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	52.4	54.5
TTM Earnings per share	Rs	1.2	4.5
Diluted earnings per share	Rs	1.2	4.5
Price to Cash Flow	x	32.0	52.8
TTM P/E ratio	x	111.8	78.3
Price / Book Value ratio	x	2.3	4.6
Market Cap	Rs m	9,378	19,463
Dividends per share (Unadj.)	Rs	2.5	3.0

Ratio Analysis for QUICK HEAL TECHNOLOGIES

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 5.0x during FY24, from 4.5x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 202.6x during FY24, from 0.0x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 5.7% during FY24, from 1.6% during FY24. 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 6.2% during FY24, from 2.0% during FY23. 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 4.8% during FY24, from 1.3% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	4.5	5.0
Debtors’ Days	Days	16	16
Interest coverage	x	0.0	202.6
Debt to equity ratio	x	0.0	0.0
Return on assets	%	1.3	4.8
Return on equity	%	1.6	5.7
Return on capital employed	%	2.0	6.2

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 184.2 to Rs 597.4, registering a gain of Rs 413.2 or around 224.3%.

Meanwhile, the S&P BSE IT Index is trading at Rs 41,690.4 (up 0.3%). Over the last one year it has moved up from 30,908.0 to 41,690.4, a gain of 10,782 points (up 34.9%).

Overall, the S&P BSE SENSEX is up 23.0% over the year.

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