Quick Heal To Focus More On Enterprise Business After Muted Q2 Results

Quick Heal Technologies will see an improvement in its financial numbers in the next 12 months, but it will continue to focus more on its enterprise solutions business rather than the core consumer business, according to the company’s Chief Executive Officer, Vishal Salvi.

For the quarter ended September 2024, Quick Heal reported a 67.8% drop in consolidated net profit at Rs 4.15 crore compared to Rs 12.9 crore in the same period a year ago. The company’s revenue for the quarter also declined by 6.2% year-on-year to Rs 73.5 crore against Rs 78.4 crore in the corresponding quarter of the preceding fiscal.

Talking to NDTV Profit, Salvi said that the company was investing and doing a “significant pivot” from its consumer business to focus more on its enterprise solutions segment.

“We have always said that we are investing, and we are doing a significant pivot from our consumer business and also getting big time as far as our enterprise business is concerned. We have always said that we are currently investing, and then we are looking at a long-term plan as far as our enterprise products and solutions are concerned,” he said.

The slump in growth was a result of deferred government deals, he said. However, the top executive added that there will be improvement over the next 12 months.

“We are constantly improving our order pipeline. So it is looking better. Generally our second half has always been better than our first half. We will have a good quarter-on-quarter improvement in terms of our performance,” he said.

However, the focus will continue to be on the enterprise solutions business, Salvi asserted.

“We are right now focused on growth. We still will continue to invest the money into our enterprise solutions. Our consumer business—our core business—is extremely profitable, but we are putting that money into the enterprise business. Right now we will give a positive Ebitda, but our focus is on growth,” the Quick Heal CEO added.

Talking about Quick Heal’s newly launched product, Seqrite Malware Analysis Platform (SMAP), Salvi said that the company is trying to democratise the product to a level where a layman can understand what a malware is trying to do.

“The use case is not so much for enterprises but for state governments and central governments, where we will have an indigenous malware analysis platform. The use case for law enforcement for teams within the state governments who are managing the cybersecurity,” he said.

“We will actually be able to use this platform to be able to really look at what's happening in their region and in their state,” the top executive added.

Shares of Quick Heal Technologies Ltd. closed 0.75% higher at Rs 638.4 apiece on the NSE on Friday, compared to the benchmark Nifty 50 settling flat at 24,677.80, up 0.12%.