Quick Heal Technologies Limited — Interim / Quarterly Report 2022

Jan 24, 2022

Quick Heal Technologies Ltd.

Regd. Office: Marvel Edge, Office No. 7010 C & D, 7th Floor, Opposite Neco Garden Society, Viman Nagar, Pune 411014. Tel: +91 20 66813232 | Email: cs@quickheal.co.in CIN - L72200MH1995PLC091408

Ref No.: QHTL/Sec/SE/2021-22/63 January 24, 2022

The Manager, The Manager, Corporate Services, Corporate Services, Mumbai – 400 001 Bandra (E), Mumbai – 400 051 Ref: Security ID : QUICKHEAL Symbol: QUICKHEAL Security Code: 539678 Series : EQ

BSE Limited, National Stock Exchange of India Limited, 14th floor, P J Towers, Dalal Street, Exchange Plaza, Bandra Kurla Complex,

Subject: Outcome of Board Meeting January 24, 2022

Dear Sir / Madam,

We wish to inform you that the Board of Directors at its meeting held on January 24, 2022 through video conferencing which commenced at 03:00 PM and concluded at 04:50 PM, has approved following:

• 1. Unaudited Consolidated and Standalone Financial Results of the Company for the quarter and nine months ended December 31, 2021.
• 1. A copy of the Press Release being issued in respect of aforesaid financial results.
• 1. A Presentation in respect of aforesaid financial results
• 1. Pursuant to Regulation 33 of SEBI Regulations, we have enclosed herewith Limited Review Report for the un-audited Standalone and Consolidated Financial Results of the Company for the quarter and nine months ended December 31, 2021, from our Statutory Auditors, M/s MSKA & Associates, Chartered Accountants.

As permitted, this letter is being submitted under Sd/- mode due to work from home as per the Government advisory on Covid-19 and as a part of safety measure.

This is for your information and records.

For Quick Heal Technologies Limited

Sd/-

A. Srinivasa Rao Company Secretary

Quarter endedNine Months endedDecember 31, 2021September 30, 2021ParticularsDecember 31, 2020December 31, 2021Sr. No.(Unaudited)(Unaudited)(Unaudited)(Unaudited)	December 31, 2020	Year endedMarch 31, 2021
	(Unaudited)	(Audited)
Income
Revenue from operations796.161,037.85698.752,381.85	2,277.50
Other income36.3136.5162.87135.33	184.27	3,330.44
Total income832.471,074.36761.622,517.18	2,461.77	241.613,572.05
$\overline{2}$Expenses
Cost of raw materials consumed2.812.431,806.42	6.67	10.27
Purchase of software products26.1539 486.6277.29	42.86	83.29
Changes in inventories of software products(1.95)(1.98)12.98(6,31)	26.85	22.78
Employee benefits expense333.56339.82289.821,001.00	832.34	1,147.44
Depreciation and amortisation expense45.4341.6249.57128.03	144.87	194.87
Other expenses230.79195.02222.90583.56	491.93	652.03
Total expenses636.79616,39583.691,789.99	1,545.52	2,110.68
$\overline{3}$Profit before tax (1-2)195.68457.97177,93727.19	916.25	1,461.37
$\overline{4}$Tax expense
Current tax
Pertaining to profit for the current period51.76115.0223 25177.67	229.37	340.38
Adjustments of tax relating to earlier periods6.526.52		17.56
Deferred tax(5.47)(3.33)20.07(7.98)	14:34	33.63
Total tax expense52.81111.6943.32176.21	243,71	391.57
5Profit for the period (3-4)142.87346,28134.61550.98	672.54	1,069.80
6Other comprehensive income, net of tax
Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
Re-measurement of defined benefit plans0.913.48(4.17)2.29	(2.87)	1,26
Other comprehensive income to be reclassified to profit or loss in subsequent periods:
Exchange differences on translation of foreign operations(1.01)(1, 38)(0.37)(1,76)	(2,88)	(3.60)
Total other comprehensive income(0.10)2.10(4.54)0.53
	(5.75)	(2.34)
$\tau$Total comprehensive income (after tax) (5+6)142.77348.38130.07551.51	666.79	1,067.46
8Paid-up equity share capital (face value of ₹10 each)579.55579.01642.05579.55	642.05	642.07
9Other equity (as per balance sheet of previous accounting year)rechnology		6,872.79
10Earnings per share of ₹10 each:
Quick Heeimited(not annualised for the quarter)
a) Basic
2.475.982.109.21b) Diluted2.45	10.48	16.66
5.942.099.15$\mathscr{L}$Pune	10.47	16.65

	(₹ in million, except per share data)
Sr.	Particulars		Quarter ended		Nine months ended		Year ended
$\mathbf{N_0}$		December 31, 2021	September 30, 2021	December 31, 2020	December 31, 2021	December 31, 2020	March 31, 2021
	Income	(Unadited)	(Unadited)	(Unaudited)	(Unadited)	(Unadited)	(Audited)
	Revenue from operations
	Other income	796 25	1,037.92	711.23	2,378.00	2,274.23	3,335,28
	Total income	36.28832.53	36.49	62.31	135.12	182.13	239.37
			1,074.41	773.54	2,513.12	2,456.36	3,574.65
$\overline{2}$	Expenses
	Cost of raw materials consumed	2.81
	Purchase of security software products	26.17	2.4339.46	1.80	6.42	6.67	10.27
	Increase / (decrease) in inventories of security software products	(1, 95)		6.43	80.53	40.05	80.45
	Employee benefits expense	330.72	(1.99)336.92	12.98285.97	(6.67)	26.86	22.96
	Depreciation and amortisation expense	45.41	41.58	49.56	992.63	820.62	1,131.97
	Other expenses	234.03	198.13	246.59	127.95593.38	144.80	194.78
	Total expenses	637.19	616.53	603.33		506.99	675.85
					1,794.24	1,545.99	2,116.28
$\overline{3}$	Profit before exceptional items and tax (1-2)	195.34	457.88	170,21	718.88	910,37	1,458.37
4	Exceptional items (refer note 3)		Ŵ,		21.64		$\sim$
5	Profit before tax $(3-4)$	195.34	457.88	170.21	697.24	910.37	1,458.37
6	Tax expense
	Current tax
	Pertaining to profit for the current period	51.47	114.73	22,92	176.79	228.47	339.24
	Adjustments of tax relating to earlier periods (Net)	6.52	$\omega$	ä.	6.52	×	17.56
	Deferred tax	(5.47)	(3.33)	20.07	(7.98)	14.34	33.63
	Total tax expense	52.52	111.40	42.99	175,33	242.81	390.43
7	Profit for the period (5-6)	142.82	346.48	127.22	521.91	667.56	1,067.94
8	Other comprehensive income, net of tax
	Other comprehensive income not to be reclassified to profit or loss in subsequent periods:
	Re-measurement of defined benefit plans	0.91	3.48	(4.17)	2.29	(2.87)	1.26
	Other comprehensive income to be reclassified to profit or loss in subsequent periods		¥.
	Total other comprehensive income	0.91	3.48	(4.17)	2.29	(2.87)	1,26
	9 Total comprehensive income (after tax) $(7+8)$	143.73	349.96	123.05	524.20	664.69	1.069.20
	10 Paid-up equity share capital (face value of ₹ 10 each)	579.55	579.01	642.05	579 55	642.05	642.07
	echnologies11 Other equity (as per balance sheet of previous accounting year)						6,915.97
	Limited12 Earnings per share of ₹ 10 each:
	Quick(not annualised except for the year ended March)
	a) Basic	2,47	5.98	1.98	8.72
	b) Diluted	2.45	5.94	1.98	8.67	10.4010.40	16.6416.62
	Lille

Particulars				Standalone	11.1111111111111111111111111111111111
		Ouarter ended			Nine months ended	Year ended
	December 31, 2021	September 30, 2021	December 31, 2020	December 31, 2021	December 31, 2020	March 31, 2021
	(Unadited)	(Unadited)	(Unaudited)	(Unadited)	(Unadited)	(Audited)
Impairment of investment in wholly owned subsidiaries				21.64

	For and on behalf of the Board of Directors
Place: Pune	×ΞKailash Katkar
Date: January 24, 2022	Managing Director& Chief Executive Officer

Quick Heal Technologies Third Quarter Revenue Grows 14%, Enterprise segment continues to grow in double digits

Q3 FY22 Highlights (YoY):

• Revenue at ₹796 mln up 14%
• EBIDTA at ₹205 mln up 24%
• PAT at ₹143 mln up 6%
• EPS at ₹2.45 up 17%
• Continues to be a debt free company

Pune, January 24, 2022: Quick Heal Technologies Limited, one of the leading providers of cybersecurity and data protection solutions to consumers, businesses and government, reported its unaudited results for the quarter and nine months ended 31 st December 2021.

Consolidated Financial Highlights:

Particulars (₹ million)	Q3 FY22	Q3 FY21	YoY Change
Revenue	796	699	13.9%
EBITDA	205	165	24.4%
EBITDA Margin	25.7%	23.6%	216bps
PAT	143	135	6.1%
PAT Margin	17.9%	19.3%	(132bps)
Diluted EPS (₹)	2.45	2.09	17.22%

Dr. Kailash Katkar, Managing Director and Chief Executive Officer, Quick Heal Technologies Limited, said, "We delivered a robust third quarter in terms of revenue, subscribers, profitability and cash flow which is a testament to our team's strong execution. Our continued commitment to secure our customers' ever-increasing online footprint helped us add 818 thousand new subscribers. The growth in enterprise segment has been promising and we expect the momentum to continue in the coming quarters.

In line with our strategy to boost market share, we continue to invest in R&D and strengthen leadership team that will enable us to launch next-generation solutions in the coming quarters," he added.

Mr. Navin Sharma, Chief Financial Officer, Quick Heal Technologies Limited, said, "We delivered solid results in Q3, as continued strong demand for our cybersecurity products across our diversified global go-to-market channels, coupled with our focus on operational discipline, resulted in 14% Y-o-Y growth in Revenue and 24% Y-o-Y growth in EBITDA. In line with our continued focus on R&D and innovation, we spent 27% of revenues as R&D during the quarter. Our balance sheet remains strong with zero debt and cash and cash equivalents of ₹ 3,275 mln as on 31st December 2021. We are committed to driving shareholder value by growing profitability across both of our segments and driving solid Unlevered Cash Flow."

Segmental performance for the quarter ended 31 st December 2021:

• ✓ Retail segment revenue stood at ₹652 million as compared to ₹603 million in the corresponding period of the previous year, up 8.1% YoY.
• ✓ Enterprise and Government segment revenue stood at ₹201 million as compared to ₹180 million in the corresponding period previous year, up 11.3% YoY.

Key updates for the quarter:

• Quick Heal has appointed Mr. Navin Sharma, with over 18 years of experience in manufacturing and software industry, as the CFO to drive the company's financial performance and bring greater rigor to the company's ongoing investments in next-generation technologies and M&A initiatives.
• Seqrite Endpoint Security has been EPS accredited with "Advanced Approved Endpoint Protection" Certificate and the AV Test certification for top product for the second time in a row.
• Seqrite has been certified and approved for its endpoint anti-malware solution by ICSA labs
• Quick Heal has worked extensively in helping the community at large by donating mobile clinics in the aspirational districts of Hazaribagh & Bundelkhand identified by PMO office, helping school kids in Maharashtra through mental wellness program and creating cyber awareness in college students through innovative methods like street plays.

About Quick Heal Technologies Limited

Quick Heal Technologies Limited is one of the leading providers of Cybersecurity and Data Protection Solutions with a strong footprint in India and an evolving global presence. Incorporated in the year 1995, with a registered office in Pune, it is an all-round player in cybersecurity with presence in B2B, B2G and B2C segments and multiple product categories – endpoints, network, data and mobility.

It helps in simplifying security by delivering the best-in-class protection against advanced cyber-threats to millions of its customers and enterprises. Quick Heal's portfolio includes solutions under the widely recognized brand names 'Quick Heal' and 'Seqrite' across various operating systems and devices.

For more information about the Company, please visit our website www.quickheal.co.in

Safe Harbor Statement

This document may contain forward-looking statements about Quick Heal Technologies Limited, which are based on the beliefs, opinions, and expectations of the company's management as the date of this press release and the companies do not assume any obligation to update their forward-looking statements if those beliefs, opinions, expectations, or other circumstances should change. These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. Consequently, readers should not place any undue reliance on such forward-looking statements.

For further details please contact

Company

Quick Heal Technologies Limited

CIN No: L72200MH1995PLC091408

Mr. Navin Sharma

Email Id: navin.sharma@quickheal.co.in

DECEMBER 21

INVESTOR PRESENTATION

Q3FY22 & 9MFY22

This presentation and the accompanying slides (the "Presentation"), which have been prepared by Quick Heal Technologies Ltd. (the "Company"), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis or be relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company.

This Presentation has been prepared by the Company based on information and data which the Company considers reliable, but the Company makes no representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respect of the contents of, or any omission from, this Presentation is expressly excluded.

This presentation contains certain forward-looking statements concerning the Company's future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward looking statements. The risks and uncertainties relating to these statements include, but are not limited to, risks and uncertainties regarding fluctuations in earnings, our ability to manage growth, competition (both domestic and international), economic growth in India and abroad, ability to attract and retain highly skilled professionals, time and cost over runs on contracts, our ability to manage our international operations, government policies and actions regulations, interest and other fiscal costs generally prevailing in the economy. The Company does not undertake to make any announcement in case any of these forward-looking statements become materially incorrect in future or update any forward-looking statements made from time to time by or on behalf of the Company.

Quick Heal acknowledges the ownership rights of third parties to the intellectual property rights mentioned in this document. Other logos/trademarks mentioned in the presentation belongs to respective owners and used only for reference purpose.

Agenda

Industry Overview

Company Overview

The Quick Heal Advantage

Q3FY22 Earnings Highlights

Q3FY22 Earnings

OVERVIEW INDUSTRY

Rapid digitization has enhanced need for greater cybersecurity investments

People enrolled in the world's largest unique digital identity program

Users engaged in social media

Application downloads in 2020

Average cost to subscriber per GB wireless data

Source: The Ministry of Electronics and Information Technology, TRAI, Government of India, Statista, Google report – Insights for Brands, KPMG Report – Fintech In India, India Data Diviner – Macquarie, Nokia MBIT, Goldman Sachs Investment Research – Portfolio Strategy Research (Sept 19, 2021)

Cyber attacks continue to grow in scale and sophistication

6

2021 Cyber threat landscape shows that…

*Top seven malware categories features in the chart

Cyber threat predictions for 2022 and beyond

Predictions 2022

malicious files

Quick Heal is well positioned to leverage its strengths to capture the future opportunities

OVERVIEW COMPANY

Company at a glance

Vision

To be the trusted global leader in securing the digital world

Mission

Secure our customers by providing innovative, most preferred and valued security solutions, services and knowledge

Protect information and interactions on all types of networks, devices & things globally

Build a healthy business and organization

Our journey

Over 25 years of simplifying security

Scripting a new success story In the cybersecurity industry

• India's first listed cybersecurity products company

• A "Make in India" product configured to secure countries, cities and companies
• Quick Heal – undisputed leader in the retail segment
• Seqrite making inroads in the SMB & enterprise segment
• Quick Heal Security Labs - a team of highly efficient security researchers, analysts and engineers leverages a combination of AI, cloud and patented technologies to deliver timely and advanced protection

• Solutions to secure across platforms

The Cash Cow: Anti Virus Business

▪ Over 25 years into existence

• Market leadership with over 30% in the Indian market
• Robust Sales & Distribution network in India

Cybersecurity Startup incubated inhouse

• Incubated the enterprise cybersecurity through internal accruals
• Growth story for QH in the years to come
• Launching new products
• %Exports : ~18% of our Enterprise revenues
• Amount spent on R&D has been charged to P&L as per prudent accounting policies and good governance practices

ARR* of over INR 800 Mn

Shareholding Information

Shareholding structure – 31st December 2021 Shareholder Information

(as on 31st December 2021)

NSE Ticker	QUICKHEAL
BSE Ticker	539678
Market Cap (INR mln)	14,350
% Free-float	27.08%
Free-float market cap (INR mln)	3,886
Total Debt (INR mln)	-
Cash & Cash Equivalents (INR mln)	3,275
Shares Outstanding	5.79,56,601
3M ADTV (Shares)*	1,94,919
3M ADTV (INR mln)*	45.6
Industry	IT Software Products

*Source: NSE

ADVANTAGE THE QUICK HEAL

Strong threat detection and prevention capabilities…

Cloud Based Deep Learning Module

Research & Development …with State-of-the-Art leading to Innovations

25+ years of experience coupled with vast distribution network across India has helped us understand security market and issues faced by millions of users in depth which has led to consistent introduction of innovative products and solutions for our customers

Committed to deliver exceptional

customer experience

Multi-lingual end user support in English, Hindi and several other 1 major regional Indian languages

Availability of data sheets, product videos and manuals on website for providing 2information on technical specifications, installation guide, upgrade mechanisms

Release of various articles, technical papers, quarterly threat reports 3 and conducting webinars in the area of security software

Experienced Board of Directors

Dr. Kailash Katkar MD & CEO

Drives the strategic direction for the company while nurturing a strong leadership team to drive its execution

Dr. Sanjay Katkar Joint MD & CTO

Spearheads the creation and subsequent development of the core product technology

Mr. Shailesh Lakhani Non-Executive Director

Serves as the MD at Sequoia Capital India. Previously, he worked at Redknee's India subsidiary as the Managing Director

Mr. Amitabha Mukhopadhyay Independent Director

Over three decades of experience in corporate finance, legal and litigation, strategy and M&A. Served as the Group CFO of Thermax

Mr. Mehul Savla Independent Director

Serves as Director for RippleWave Equity Advisors LLP. Previously worked at JP Morgan, ICICI Securities and SEBI

Ms. Apurva Joshi Independent Director

Certified bank forensic accounting professional and anti – money laundering expert

Air Marshal (Retd) Bhushan Nilkanth Gokhale Independent Director

Served on the board of defense PSUs and adviser to government institutions. Appointed as Independent Security Advisor in Ministry of Home Affairs.

Mr. Richard Stiennon Independent Director

Serves as Chief Research Analyst at IT-Harvest, and sits on the advisory boards of several start-ups. Has been the part of board of cybersecurity companies like Symantec, McAfee, Cisco, Microsoft and Trend Micro

21

…along with strong Management…

Dr. Kailash Katkar MD & CEO

Co-founder of the Company

Has been the driving force in growing Quick Heal Technologies since it's inception.

A proven leader with a profound proficiency in developing strong client relationships, passion for building outstanding teams and a disciplined focus on operations & execution of strategy.

Dr. Sanjay Katkar Joint MD & CTO

Co-founder of the Company

Leads the global technology strategy & is responsible for the core research & development of the products.

Has served as the Director of Association of Anti-Virus Researchers, Asia and is a distinguished speaker at various industry forums.

Holds Master's degree in Computer Science from the University of Pune.

…and seasoned Leadership team

Mr. Navin Sharma CFO

Responsible for driving growth lead strategy through organic & inorganic channels.

Previously was the CFO with Sterlite Technologies for the technology business.

Navin has worked with RPG Group and Century Textiles and Industries Limited and brings vast experience in the areas of M&A, customer acquisition, financial planning and analysis and managing overseas operations.

Ms. Reetu Raina CHRO

Responsible for driving HR and steering the company's people operations, culture and recruitment initiatives.

Ms. Raina holds extensive industry experience and has worked across sectors such as Telecom, BFSI, and IT.

She has held leadership roles with domain-leading brands such as TATA, HDFC Bank, and Amdocs. She was the Head of HR at Sterlite Technologies.

Mr. Sanjay Agrawal CPO

Responsible for driving the overall product vision and strategy in line with market expectations.

Sanjay is an entrepreneurial engineering and product leader with two decades of experience and proven success in building cybersecurity products for the global markets.

A computer engineering graduate from University of Illinois, Sanjay holds a Ph.D. and M.S. from Stanford University in Electrical Engineering and Computer Science (EECS).

…and seasoned Leadership team

Mr. Bibhuti Kar Head, R&D

Responsible for driving company's development efforts leading a team of talented engineering professionals and security researchers.

Bibhuti brings with him over two and a half decades of rich experience in the global high-tech industry.

An alumnus of IIT Kharagpur with a master's in ECE, he has worked on missile communication systems with DRDO.

Mr. Kuldeep Raina Head, Global Enterprise Sales

Responsible for leading the enterprise and government sales strategy and managing the vertical on a global level.

Passionate technocrat with a rich flare for sales and ability to drive targets in dynamic business environment.

Over two decades of diverse sales experience including leadership roles in cybersecurity companies.

Mr. Deepak Mishra Head, Retail Sales

Responsible for enhancing market share and driving channel strategy for the retail brand.

Has extensive exposure in sales and distribution, channel management, and building a robust distribution to drive productivity and profitability.

Over two decades of experience in FMCG, Beverages, Telecom and IT Industries.

Strong brand recognition…

…backed by Certifications, Patents and…

Patented Technologies

USPTO 10,387,649 Signatureless Behaviour-based

Detection Technology

USPTO 10,311,234 Anti-Ransomware technology

USPTO 8,973,136 System and method for protecting computer systems from malware attacks

USPTO 8,914,908

A completely automated computer implemented system and method for piracy control based on update requests

USPTO 8,347,389

System for protecting devices against virus attacks

USPTO 7,945,955

Virus detection in mobile devices having insufficient resources to execute virus detection software

International & ISO Certifications

Securing the future through our community initiatives

23,50,000+ Lives directly impacted since 2016

• Cybersecurity Awareness
• Cyber Shiksha for Suraksha
• Street Plays

Lives impacted since 2020

Cybersecurity Covid-19 Relief Initiatives

• Free immunity boosters medicines to frontline workers
• Organised health camps and assisted in the smooth functioning of Covid-19 centres
• Donated medical vans to NGOs to heal tribal population
• Distribution of food grains during lockdown
• Distribution of PPE kits to NGOs
• Donated to PM Cares Fund

45,000+

Lives directly impacted since 2016

Education

• Life Skills Education for underprivileged children

Quick Heal Academy to drive the next generation of cyber security experts

Popular Courses

• ✓ Cyber Security and Forensics
• ✓ Cyber Threat Intelligence
• ✓ Malware Analysis & Reverse Engineering
• ✓ Security Operations Centre (SOC)
• ✓ Electronic Crime Scene Investigation

Offerings

Academy Partners

Chitkara University

MoU with Chitkara University Introduced an additional stream in Cyber Security for the four-year Undergraduate program

Quantum University

MoU with Quantum University for a joint B.Tech (Hons.) with specialization in Cyber Security

Manav Rachna University

MoU with Manav Rachna University (MRU) for a joint B. Tech in Cyber Security & Threat Intelligence, programme

'Cyber Shikshaa Programme' an initiate of DSCI and Microsoft : Quick Heal as the training partner has targeted to train 5000 students across India creating cyber security awareness through online programme

Sage University

MoU with Sage University (Indore) for a joint B. Tech in Cyber Security programme

Parul University

MoU with Parul University, Vadodara for Joint B. Tech Programme (4 Years )

Disclaimer: Quick Heal acknowledges the ownership rights of third parties to the intellectual property rights mentioned in this document. Other logos/trademarks mentioned in the presentation belongs to respective owners and used only for reference purpose

Q3FY22 HIGHLIGHTS EARNINGS

Q3FY22 Earnings Highlight

EARNINGS Q3 & 9MFY22

Q3FY22 – Consolidated Performance Highlights

*As per Ind AS

9MFY22 – Consolidated Performance Highlights

**Note: There was a spill over of revenue of ₹ 300 mln from Q4FY20 in Q1FY21 due to non -availability of transport facilities due to lockdown *As per Ind AS

Q3FY22 Segment performance

Based on net revenues before adjusting for sales incentives 34

9MFY22 Segment performance

Q3FY22 – Profitability statement

	Standalone			Consolidated
PARTICULARS (₹mln)	Q3FY21	Q3FY22	% change	Q3FY21	Q3FY22	% change
Total Revenue	711.23	796.25	11.95%	698.75	796.16	13.94%
Direct Cost	26.18	32.42		26.39	32.40
Gross Profit	685.05	763.83	11.50%	672.36	763.76	13.59%
Gross Margin	96.32%	95.93%	-39bps	96.22%	95.93%	-29bps
Operating Cost
Research and Development (R&D)	170.09	213.04		170.09	213.04
Sales and Marketing (S&M)	221.05	211.56		224.99	214.80
General Administration (G&A)	136.45	134.77		112.65	131.12
Total Expenditure	527.59	559.37	-6.02%	507.73	558.96	-10.09%
EBITDA	157.46	204.46	29.85%	164.63	204.80	24.40%
EBITDA Margin	22.14%	25.68%	354bps	23.56%	25.72%	216bps
Depreciation	49.56	45.41		49.57	45.43
EBIT	107.90	159.05	47.41%	115.06	159.37	38.51%
EBIT Margin	15.17%	19.97%	480bps	16.47%	20.02%	355bps
Other Income	62.31	36.28		62.87	36.31
Profit Before Tax (PBT after exceptional item)	170.21	195.33	14.76%	177.93	195.68	9.98%
Tax	42.99	52.52		43.32	52.81
Profit After Tax (PAT)	127.22	142.81	12.25%	134.61	142.87	6.14%
PAT Margin	17.89%	17.94%	5bps	19.26%	17.94%	-132bps

9MFY22 – Profitability statement

	Standalone			Consolidated
PARTICULARS (₹mln)	9MFY21	9MFY22	% change	9MFY21	9MFY22	% change
Total Revenue	2,274.23	2,378.00	4.56%	2,277.50	2,381.85	4.58%
Direct Cost	88.67	93.17		91.53	90.31
Gross Profit	2,185.56	2,284.83	4.54%	2,185.97	2,291.54	4.83%
Gross Margin	96.10%	96.08%	-2bps	95.98%	96.21%	23bps
Operating Cost
Research and Development (R&D)	488.59	607.82		488.59	607.82
Sales and Marketing (S&M)	482.74	571.23		494.71	580.23
General Administration (G&A)	341.19	394.08		325.82	383.60
Total Expenditure	1,312.52	1,573.13	-19.86%	1,309.12	1,571.65	-20.05%
EBITDA	873.04	711.70	-18.48%	876.85	719.89	-17.90%
EBITDA Margin	38.39%	29.93%	-846bps	38.50%	30.22%	-828bps
Depreciation	144.80	127.95		144.87	128.03
EBIT	728.24	583.75	-19.84%	731.98	591.86	-19.14%
EBIT Margin	32.02%	24.55%	-747bps	32.14%	24.85%	-729bps
Other Income	182.13	135.12		184.27	135.33
Profit Before Tax (PBT after exceptional items)	910.37	718.87	-21.04%	916.25	727.19	-20.63%
Exceptional items	0.00	21.64		-	-
Profit Before Tax	910.37	697.23	-23.41%	916.25	727.19	-20.63%
Tax	242.81	175.33		243.71	176.21
Profit After Tax (PAT)	667.56	521.90	-21.82%	672.54	550.98	-18.07%
PAT Margin	29.35%	21.95%	-741bps	29.53%	23.13%	-640bps

NOTE: Certain figures have been re-grouped wherever necessary 37

	Standalone		Consolidated
In %	Q3FY21	Q3FY22	Q3FY21	Q3FY22
Expenses
Direct Cost / Revenue	3.68%	4.07%	3.78%	4.07%
R&D / Revenue	23.91%	26.76%	24.34%	26.76%
S&M / Revenue	31.08%	26.57%	32.20%	26.98%
G&A / Revenue	19.18%	16.93%	16.12%	16.47%
Total Cost / Revenue	74.18%	70.25%	72.66%	70.21%
Margin
Gross Margin	96.32%	95.93%	96.22%	95.93%
EBITDA	22.14%	25.68%	23.56%	25.72%
EBIT	15.17%	19.97%	16.47%	20.02%
PBT	23.93%	24.53%	25.46%	24.58%
PAT	17.89%	17.94%	19.26%	17.94%

	Standalone		Consolidated
In %	9MFY21	9MFY22	9MFY21	9MFY22
Expenses
Direct Cost / Revenue	3.90%	3.92%	4.02%	3.79%
R&D / Revenue	21.48%	25.56%	21.45%	25.52%
S&M / Revenue	21.23%	24.02%	21.72%	24.36%
G&A / Revenue	15.00%	16.57%	14.31%	16.11%
Total Cost / Revenue	57.71%	66.15%	57.48%	65.98%
Margin
Gross Margin	96.10%	96.08%	95.98%	96.21%
EBITDA	38.39%	29.93%	38.50%	30.22%
EBIT	32.02%	24.55%	32.14%	24.85%
PBT	40.03%	30.23%	40.23%	30.53%
PAT	29.35%	21.95%	29.53%	23.13%

Consolidated Balance Sheet

EQUITY AND LIABILITIES (₹mln)	Dec 31, 2020	Dec 31, 2021	ASSETS (₹mln)	Dec 31, 2020	Dec 31, 2021
Share Holder's Funds:			Non-Current Assets:
Equity Share Capital	642.05	579.55	Property, plant and equipment	1,408.76	1,330.27
Share application money pendingallotment	-	-	Capital work-in-progressIntangible assets	34.0063.30	2.4464.12
Reserves and Surplus	6,472.75	5,373.69	Non-current financial assetsInvestments in MF ,Tax-Free Bonds &
Total Shareholder Funds	7,114.80	5,953.24	others	174.04	247.48
Non-Current Liabilities			Loan and Security Deposits	3.82	3.65
			Bank Balances	3.40	-
Net employee defined benefit liabilities	3.47	-	Deferred tax assets (net)	12.49	-
Other Non Current Liabilities	-	5.19	Other non current assets	213.77	204.12
Deferred tax liability (net)	-	0.97	Total Non-Current Assets	1,913.58	1,852.08
Total Non-Current Liabilities	3.47	6.16	Current assets:Inventories	32.88	37.41
Current Liabilities:			Investment in Mutual Fund	3,945.08	2,595.89
Trade and Other Payables	493.01	526.61	Trade and other receivables	1,151.87	1,506.47
Other Financial Liabilities	30.56	19.17	Bank Balances & Cash and CashEquivalents	132.97	174.55
Other Current Liabilities	135.37	166.78	Investment in Fixed Deposit	576.63	446.40
Net employee defined benefit liabilities	25.59	4.34	Loan and security deposits	7.03	4.38
			Interest accrued on FDR & Tax-Free Bonds	12.24	7.52
Current tax liabilities (Net)	14.18	0.86	Other Current assets	44.70	46.92
Total Current Liabilities	698.71	717.76	Assets classified as held for sale	-	5.54
Total Equity & Liabilities	7,816.98	6,677.16	Total Current Assets	5,903.40	4,825.08

NOTE: Certain figures have been re-grouped wherever necessary Total Assets 7,816.98 6,677.16 40

Standalone Balance Sheet

EQUITY AND LIABILITIES (₹mln)	Dec 31, 2020	Dec 31, 2021	ASSETS (₹mln)	Dec 31, 2020	Dec 31, 2021
Share Holder's Funds:			Non-Current Assets:
Equity Share Capital	642.05	579.55	Property, plant and equipment	1,408.53	1,329.96
Share application money pending	-	-	Capital work-in-progressIntangible assets	34.0063.12	2.4463.99
allotment			Non-current financial assets
Reserves and Surplus	6,512.10	5,388.85	Investments in MF ,Tax-Free Bonds &	296.32	348.12
Total Shareholder Funds	7,154.15	5,968.40	others
Non-Current Liabilities			Loan and Security Deposits	3.82	3.65
Net employee defined benefit liabilities	3.47	-	Bank BalancesDeferred tax assets (net)	3.40	-
Other Non Current Liabilities	-	5.19	Other non current assets	12.49213.77	-204.12
			Total Non-Current Assets	2,035.45	1,952.28
Deferred tax liability (net)	-	0.97	Current assets:
Total Non-Current Liabilities	3.47	6.16	Inventories	32.66	37.38
Current Liabilities:			Investment in Mutual Fund	3,945.08	2,595.89
Trade and Other Payables	490.83	530.00	Trade and other receivables	1,132.78	1,514.03
Other Financial Liabilities	30.56	19.17	Bank Balances & Cash and CashEquivalents	66.61	85.76
Other Current Liabilities	133.77	165.69	Investment in Fixed Deposit	576.63	446.40
Net employee defined benefit liabilities	25.59	4.34	Loan and security deposits	6.95	4.28
			Interest accrued on FDR & Tax-Free Bonds	12.24	7.52
Current tax liabilities (Net)	13.91	0.71	Other Current assets	43.88	45.39
Total Current Liabilities	694.66	719.91	Assets classified as held for sale	-	5.54
Total Equity & Liabilities	7,852.28	6,694.47	Total Current Assets	5,816.83	4,742.19

NOTE: Certain figures have been re-grouped wherever necessary Total Assets 7,852.28 6,694.47 41

Working capital analysis

At the end of December, 2020* At the end of September, 2021** 163 110 4 57 Receivable Days Inventory Days Payable Days Net Working Capital Days 159 109 4 54 Receivable Days Inventory Days Payable Days Net Working Capital Days 127 76 4 54 Receivable Days Inventory Days Payable Days Net Working Capital Days

At the end of December, 2021*

Receivable Days = [(Debtors/ Sales) X (275 days)] Inventory Days = [(Inventory/Sales) X (275 days)] Payable Days = [(Creditor/Sales) X (275 days)]

Note* Note**

Receivable Days = [(Debtors/ Sales) X (183 days)] Inventory Days = [(Inventory/Sales) X (183 days)] Payable Days = [(Creditor/Sales) X (183 days)]

Calculation is based on net revenues before adjusting for sales incentives

Return ratio analysis

➢ Company is continuously evaluating strategic inorganic opportunities to invest across the cybersecurity ecosystem ➢ Till such time the company invests its surplus cash in mutual funds, tax free-bonds and fixed deposits

RoCE = EBIT / Avg. Capital Employed (Equity + Debt)

Cash Adj. RoCE = EBIT / Avg. Cash Adj. Capital Employed (Equity + Debt – Cash & Cash Equivalents)

ROE = PAT / Avg. Equity

* Calculated on trailing 12 months basis

Thank You

Chief Financial Officer

Mr. Navin Sharma Navin.Sharma@quickheal.co.in

Company Secretary

Mr. Srinivas Anasingaraju cs@quickheal.co.in +91-20-66813232

CIN No: L72200MH1995PLC091408 www.quickheal.co.in

Annexure

• Australia

• Bangladesh

• Benin

• El Salvador

• France

• Cambodia

• Canada

• Chile

• Colombia

• Congo

• Ecuador

• Gambia

• Germany • Guinea

• Honduras

• Hong Kong

• Italy

• Mexico • Morocco • Netherlands • New Zealand

• Nigeria

• Saudi Arabia • Singapore

• Solomon Islands • South Africa • South Korea • Sri Lanka • Panama

• Jordan
• Kenya
• Kuwait • Macao

• Japan

• Malaysia

  • Mauritius

• Paraguay

• Peru

• Philippines

• Qatar

• Rwanda

• Thailand

• Turkey

• Uganda

• UAE

• USA

  • Venezuela

Products Sold in following countries Sales & Support offices across India

• Chandigarh

• New Delhi

• Jaipur

• Lucknow

• Patna

• Guwahati

• Ahmedabad

• Indore

• Surat

• Nashik

• Nagpur

• Mumbai • Pune

  • Aurangabad
  • Kolhapur
  • Raipur
  • Kolkata
  • Bhubaneshwar

• Hyderabad

• Bangalore

• Chennai

• Kochi

Floor 6, Building No. 1 Cerebrum IT Park, Kalyani Nagar Pune 411014, INDIA Tel: +91 20 6763 3400

Independent Auditor's Review Report on Consolidated Unaudited Quarterly and year to date financial results of the Group, its Associate and Jointly controlled entities pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors Quick Heal Technologies Limited

• 1. We have reviewed the accompanying statement of consolidated unaudited financial results of Quick Heal Technologies Limited ('the Holding Company'), its subsidiaries, (the Holding Company and its subsidiaries together referred to as the 'Group') for the quarter ended December 31, 2021 and the year to-date results for the period from April 1, 2021 to December 31, 2021 ('the Statement'), being submitted by the Holding Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended ('the Regulations'). This statement is the responsibility of the Holding Company's Management and has been approved by the Holding Company's Board of Directors. Our responsibility is to express a conclusion on the statement based on our review.
• 1. This Statement has been prepared by the Holding Company's Management in accordance with the recognition and measurement principles laid down in Indian Accounting Standard 34 'Interim Financial Reporting' ('Ind AS 34'), prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, 'Review of Interim Financial Information Performed by the Independent Auditor of the Entity' issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether the financial results are free of material misstatement. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

We also performed procedures in accordance with the circular issued by the SEBI under Regulation 33 (8) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, as amended, to the extent applicable.

Sr. No	Name of the Company	RelationshipCompany	with	the	Holding
1.	Quick Heal Technologies Japan K.K.	Wholly Owned Subsidiary

1. This Statement includes the results of the following entities:

2.	Quick Heal Technologies America Inc.	Wholly Owned Subsidiary
3.	Quick Heal Technologies Africa Limited	Wholly Owned Subsidiary
4.	Seqrite Technologies DMCC	Wholly Owned Subsidiary

• 1. Based on our review conducted and procedures performed as stated in paragraph 3 above*,* nothing has come to our attention that causes us to believe that the accompanying Statement are prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulation including the manner in which it is to be disclosed, or that it contains any material misstatement.
• 1. The consolidated unaudited financial results include the interim financial information of 4 subsidiaries which have not been reviewed by their auditors, whose interim financial results reflect total assets of Rs. 98.10 million as at December 31, 2021 and total revenue of Rs. 23.41 million and Rs. 5.57 million, total net profit/(loss) after tax of Rs. 0.60 million and Rs. 0.82 million and total comprehensive income / (loss) of Rs. 0.60 million and Rs. 0.82 million for the quarter ended December 31, 2021 and for the period from April 1, 2021 to December 31, 2021, respectively, as considered in the consolidated unaudited financial results. According to the information and explanations given to us by the Management, these interim financial information are not material to the Group.

Our conclusion on the Statement is not modified in respect of the above matter.

For MSKA & Associates

Chartered Accountants ICAI Firm Registration No.105047W

Nitin Manohar Jumani Partner Membership No.: 111700 UDIN: 22111700AAAAAD3508

Place: Pune Date: January 24, 2022

Floor 6, Building No. 1 Cerebrum IT Park, Kalyani Nagar Pune 411014, INDIA Tel: +91 20 6763 3400

Independent Auditor's Review Report on unaudited quarterly and year to date standalone financial results of the Company pursuant to the Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

The Board of Directors

Quick Heal Technologies Limited

• 1. We have reviewed the accompanying statement of unaudited standalone financial results of Quick Heal Technologies Limited ('the Company') for the quarter ended December 31, 2021 and the year to-date results for the period April 1, 2021 to December 31, 2021 ('the Statement') attached herewith, being submitted by the Company pursuant to the requirements of Regulation 33 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 as amended (' the Regulation'). This statement is the responsibility of the Company's Management and has been approved by the Board of Directors. Our responsibility is to express a conclusion on the statement based on our review.
• 1. This Statement has been prepared by the Company's Management in accordance with the recognition and measurement principles laid down in Ind AS 34 'Interim Financial Reporting', prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India.
• 1. We conducted our review of the Statement in accordance with the Standard on Review Engagement (SRE) 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity" issued by the Institute of Chartered Accountants of India. This standard requires that we plan and perform the review to obtain moderate assurance as to whether standalone financial results are free of material misstatements. A review consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

1. Based on our review conducted as above, nothing has come to our attention that causes us to believe that the accompanying Statement of unaudited standalone financial results prepared in accordance with the recognition and measurement principles laid down in Ind AS 34, prescribed under Section 133 of the Companies Act, 2013 read with relevant rules issued thereunder and other recognized accounting principles generally accepted in India has not disclosed the information required to be disclosed in terms of the Regulation including the manner in which it is to be disclosed, or that it contains any material misstatement.

For MSKA & Associates

Chartered Accountants ICAI Firm Registration No.105047W

Nitin Manohar Jumani Partner Membership No.: 111700 UDIN: 22111700AAAAAC4955

Place: Date: January 24, 2022