Shares of Quick Heal Technologies Limited are down by over 5% after the co. reported its Q1FY20 numbers yesterday.
In Q1FY20, the IT security firm’s PAT was up 95% yoy to Rs119cr. Revenue rose 8.5% yoy to Rs576cr.
During the quarter, the overall demand for cybersecurity products and solutions in India was not in line with the co.’s expectations. A generic slowdown in demand resulted in pricing pressure in the SMB and consumer segment.
The co. also mentioned that it witnessed slowdown in government buying due to India’s General Elections.
Mr. Kailash Katkar, Managing Director & Chief Executive Officer, Quick Heal Technologies Limited, said, “Despite sluggish economic scenario and moderate market growth, we are pleased to report steady growth for the quarter and kick start FY20 on a positive note. Our profit margins for the quarter have almost doubled, while our revenue has seen growth of 8.5% YoY. On the revenue front, retail segment grew by 8% with volume growth of 4%. Enterprise and Government business witnessed marginal growth of 2% on account of rising pricing pressure and slowdown in Government buying due to general election. However, volume growth for the segment stood at 7%. With growing importance of cybersecurity and data protection in India and globally, we expect better realisations and volume growth going forward.”