Quick Heal Technologies Ltd. (QUICKHEAL) Q4 FY22 Earnings Concall Transcript

Quick Heal Technologies Ltd. (NSE: QUICKHEAL) Q4 FY22 Earnings Concall dated May. 06, 2022

Corporate Participants:

Anuj Sonpal — Valorem Advisors — Analyst

Kailash Katkar — Managing Director and Chief Executive Officer

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Navin Sharma — Chief Financial Officer

Analysts:

Rushank Modi — — Analyst

Sanjay Awatramani — Envision Capital — Analyst

Unidentified Participant — — Analyst

Dhwanil Desai — Turtle Capital — Analyst

Rajeev Pandya — Investor — Analyst

Presentation:

Operator

Ladies and gentlemen, good day and welcome to the Quick Heal Technologies Limited Q4 and FY22 earnings conference call. [Operator Instructions] I now hand the conference over to Mr. Anuj Sonpal from Valorem Advisors. Thank you, and over to you, sir.

Anuj Sonpal — Valorem Advisors — Analyst

Thank you, Ryan. Good evening, everyone, and a very warm welcome to you all. My name is Anuj Sonpal from Valorem Advisors. We represent the Investor Relations of Quick Heal Technologies Limited. On behalf of the company, I would like to thank you all for participating in the Company’s earnings conference call for the fourth quarter of financial and financial year ending 2022.

Before we begin, I would like to mention a short cautionary statement. Some of the statements made in today’s conference call may be forward-looking in nature. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated. Such statements are based on management’s beliefs as well as assumptions made by and information currently available to management. Audiences are cautioned not to place any undue reliance on these forward-looking statements in making any investment decisions. The purpose of today’s earnings conference call is purely to educate and bring awareness about the company’s fundamental business and financial quarter under review. Now let me introduce you to the management participating with us in today’s earnings call and then I’ll hand it over to them for opening remarks.

We firstly have with us Mr. Kailash Katkar, Managing Director and CEO; Mr. Sanjay Katkar, Joint Managing Director and CTO; Mr. Navin Sharma, Chief Financial Officer. Without much delay, I request Mr. Kailash Katkar to start with his opening remarks. Thank you, and over to you, sir.

Kailash Katkar — Managing Director and Chief Executive Officer

Thank you, Anuj. Good evening, ladies and gentlemen. The economy is quickly catching up after COVID impact and I hope the same for you. Thank you for making the time to join us today for the Company’s earning conference call of Q4 and financial year ending 2022. As you must be aware Quick Heal is a pioneer in India in cybersecurity products and truly Make in India. Quick Heal products configured to secure individual countries, cities and companies across platform. We are the undisputed market leader in the consumer segment in India, which constitutes about 75% of our overall business. Over the last few years, we have been investing heavily into enterprise solutions, which offer roughly 20 times larger market opportunity than the consumer segment. Enterprise cyber security solutions command over 95% share of the total $150 billion market globally. It is also expected to grow 3 times faster than the consumer market. Our investment into this space has already caught momentum. Our enterprise business has been growing by 23% while the industry is moving at 11% globally.

At the consumer front, we are growing modern channels of online direct-to-consumer and e-commerce platform and open up new channels of large format retail stores. Our online direct-to-consumer business has grown over 11% through the year. We have delivered good results despite the year being hit by 2 waves of COVID impacting our traditional channel distribution network. We are looking at multi-fold growth in the years to come through our investment in R&D, sales and marketing, people and global exports. We are developing new lines of enterprise solutions to cater the evolving demand of the industry. We are expanding our footprint beyond India with the strong current focus on developing economic countries. We have onboarded global industry experts across functions. We are dealing with one of the top global management consultancy company to fructify our long-term strategic growth plan.

Now I request Sanjay to take you through the technology updates and current developed products. Over to you, Sanjay.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Thank you, Kailash, and good evening everyone. I’m happy to report to you that our enterprise solutions is making great inroads in the SMB and enterprise segments. In Q4 of FY22, our enterprise business showed a strong year-on-year growth of around 33% to reach around INR27 crores surpassing the ARR of INR100 crores. We added more than 30 new customers in the Enterprise Solutions segment during the quarter. Through the year FY22, we have launched 2 new enterprise products namely HawkkEye and HawkkHunt, which are currently in the beta phase and has been deployed and it’s being tested by our beta customers. HawkkEye is a centralized security management platform offering holistic cyber security posture through a single dashboard where the current customers are burdened with multiple products and dashboards and HawkkHunt is our endpoint detection and response product moving beyond our traditional protection capabilities to identify, investigate and respond to advanced cyber threats at scale. Seqrite also got certified and approved for its endpoint antivirus malware solutions by ICSA Labs in this quarter. Seqrite endpoint security even past the AV-TEST, Jan-Feb test and was listed among the top products in the list of the selected products in the Jan-Feb test of AV-TEST product. We would continue our efforts towards building new offerings to the customers through the next couple of years. In a typical product lifecycle, the revenue started to flow in post 4, 6 quarters of the beta release here. Here, I mean to say the initial beta release and then minimum viable product is something that we keep using to our existing end beta testers where it is further enhanced based on the customer feedback, so that we start getting and we start competing with the mainstream competition in the same product line.

On the retail business segment for Q4 financial year ’22, we had a decline in revenues of 8% against previous year due to lower sales on account of COVID-related lockdown in January. Our direct online sales for financial year ’22 grew by 11% year-on-year and also faster than other sales channels. We are making continual upgrade to our existing lines of products adding more protection and features for our customers. I would now request Navin to take you through the financials. Over to you, Navin.

Navin Sharma — Chief Financial Officer

Thank you, Sanjay and hello everyone. Let me take you through the financial highlights of fourth quarter and financial year ended 31st March ’22. For the financial year ending 22, the consolidated revenue stood at INR342 crores, which grew by around 3% on a Y-o-Y basis. After adjusting for spillover revenue in FY21, the company saw a growth of 10% on a Y-o-Y basis. While the retail segment grew by 6% as against industry growth of 4% vendor by segment saw a growth of 23% for the full year which is more than double of the global industry growth. FY ’22 has been a year of our investment for future growth. We have invested more than 50% of our revenues towards R&D and sales and marketing program with an increase of around 30% on a Y-o-Y basis. R&D investments for the year stands at 26% wireless sales and marketing stands at 24%. EBITDA for the year stood at 31% which is aligned with 30% to 32% EBITDA range in the near term. The net profit stood at about INR83 crores declined by 22% and the net margin — net profit margin for FY22 was 24%.

Q4 revenues saw a marginal dip of 1.5% largely due to the latest wave of COVID impacting sales in the month of January. Approximately 77% of revenue for the quarter came from retail segment whereas 23% from enterprise and government segment. Our balance sheet remains strong with zero debt and cash and cash equivalents of with INR359 crores as on 31st March ’22. We are committed to driving shareholder value by growing profitably across both of our segments and driving solid unlevered cash flow. Over the last 3 financial years, we have rewarded our shareholders with over INR400 crores through buyback and dividend distribution program. A dividend of INR4.5 per share was also proposed in the Board meeting in line with our dividend distribution policy. In the last call, we had mentioned to update you on our 3-year roadmap. We have taken significant efforts towards building the same. However, we would require some additional time. As Kailash mentioned earlier, we are engaging with global expert from top management consulting firm to help us shape and drive the strategic growth plan. We will keep updating you on the developments in the coming quarters.

With this, I would like to open the call for question-and-answer session.

Questions and Answers:

Operator

Thank you very much. We will now begin the question-and-answer session. [Operator Instructions] Our first question is from the line of Rushank Modi, retail investor. Please go ahead, sir.

Rushank Modi — — Analyst

Good evening, everyone. Congratulations on a great set of results. So, sir, my first question is most IT companies are facing this issue of attrition. So is this an issue that Quick Heal is facing too and if so, how are you guys handling the issue along with the rise in employee cost.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Yes. So you are right. The entire software development industry is facing a lot of challenge about attrition and we are not different. Regarding software developing engineers customer support engineers which is close to 50% of our employees, the attrition rate has gone up in comparison to previous year. So we are taking all the measures to make sure to retain the existing strength in engineering as well as support but at the same time we are also rolling out a lot of things which help us to create more engagement among the R&D engineers and make sure that they are retained. I’d also say but if we benchmark ourselves with the industry, which is close to 40%, we are better off with our attrition rate close to 29%.

Rushank Modi — — Analyst

Alright sir. Thank you so much. Sir, the next question I have is that Seqrite which is the enterprise product contributes to almost a quarter of the total revenue. Sir, where do you see this going in the next 3 to 5 years.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Yes, as you know, we are having most of our new investment focus on the enterprise segment. Seqrite is all about our enterprise product offerings and we are having quite a good pipeline for our products which — and also good plan for marketing and sales of those things. So our plan is to increase the revenue pie from Seqrite to at least 50% in next 3 to 4 years.

Rushank Modi — — Analyst

Alright. Thank you, sir. And sir, the last question I have is that, sir, Quick Heal is basically a household name in India. So, how are you planning to increase the share of revenues from outside of India.

Kailash Katkar — Managing Director and Chief Executive Officer

Are you talking about consumer products on the market?

Rushank Modi — — Analyst

Yes, sir.

Kailash Katkar — Managing Director and Chief Executive Officer

So for a consumer products from outside market, we are focusing on e-commerce platforms like Amazon.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

So from that, the major focus is the e-commerce platform because the traditional platforms out of India more costly. I mean, to say the marketing and branding towards that actually. So we are gradually expanding our presence on retail front in the countries similar to India. If you see, we are having a good presence of retail product in neighboring countries across out of India and then certain African countries as well. But at the same time as Kailash said, we are focusing more towards capturing that market through e-commerce.

Kailash Katkar — Managing Director and Chief Executive Officer

I would also like to add, as Sanjay said, that our consumer products are like as you mentioned household name in India. In some countries, again, it is the same like Bangladesh. Even in Italy, the consumer products are getting sold through the shops. So some of the countries, it is already there like Kenya, Nigeria, some of the African countries. So, you will find Quick Heal boxes in the shops actually.

Rushank Modi — — Analyst

Alright. Understood, sir. That’s it from my end. Thank you so much.

Operator

Thank you. Our next question comes from the line of Sanjay Awatramani with Envision Capital. Please go ahead, sir.

Sanjay Awatramani — Envision Capital — Analyst

Yeah, good evening and thank you for giving me this unfortunately. So I just wanted to ask, I mean, which are the geographies you are focusing. As you said that you will be moving ahead with developed geographies, so if you can highlight some names of these countries and are there any other plans to move ahead other than cyber security or the existing products.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

To answer to your question, we are cyber security experts and there is lot many things to do in cyber security itself. So we are not going to diversify our business. We are going to focus on cyber security part of it. And as I said in my speech, I’m talking about the Enterprise Solutions, which is already there with us and plus what Sanjay has updated you about our new products and solutions in Enterprise. We would like to take those products to some of the, you know, economically strong and where we feel that market is ready to pay for that products and solutions. So to those countries, we would like to take our products and solutions to those countries like South Africa, African countries, Southeast Asia countries, some of the Europe countries, not all Europe countries where we have a good channel network, some of the — even in Korea and all this comes in Southeast Asia only. So these are the countries, I meant to say.

Sanjay Awatramani — Envision Capital — Analyst

Okay. This is very helpful, sir. And can you highlight the attrition rate for FY ’22 if it is possible for you.

Navin Sharma — Chief Financial Officer

And Sanjay had answered the question.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

So the attrition rate for this year is around 29% which is less than industry average.

Sanjay Awatramani — Envision Capital — Analyst

Okay. So any guidance for FY23 on revenues or EBITDA margin if you can help us with that.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

No, for forward looking the same but let me tell you we are very much confident about our new products and solutions, which are moving to the customer as a beta testing part of it and some of the products have already reached to our customers and we are also very excited and happy to see the customers are happy with what we have developed the products and this is definitely going to generate good revenue in coming years actually.

Kailash Katkar — Managing Director and Chief Executive Officer

I can only say that we can see similar growth in enterprise front. The growth this year, we have seen almost more than 20% growth in enterprise. And then on the consumer, we are with now with markets open and hope that there will be no more COVID wave can disrupt the market. Then, this should also help us in bringing back the consumer market — the activations on the consumer front as well actually. So, we hope to have a good year FY23.

Sanjay Awatramani — Envision Capital — Analyst

Okay, that’s all from my side. Thank you so much.

Operator

Thank you. Our next question is from the line of Devesh Kasliwal [Phonetic], an retail investor. Please go ahead.

Unidentified Participant — — Analyst

Hello, am I audible?

Kailash Katkar — Managing Director and Chief Executive Officer

Yes.

Unidentified Participant — — Analyst

Yeah. So actually, I just wanted to get some idea on the Enterprise Solutions market in India, the overall market size and the scope that we have going forward as well as like overall in general, who are our key competitors in this space.

Kailash Katkar — Managing Director and Chief Executive Officer

So on the enterprise front. I’ll divide the market into 2 segments; one is SMBs and then there is large enterprises and Seqrite has products for both the segments. We traditionally like we started with SMBs, so we are very strong product offering for SMB segment and I’m quite sure that we’ll be able to increase our market share with respect to the SMB market with respect to our products. And on the large enterprise front, we — couple of years we have been releasing products which are supporting the scale for large enterprises and we have plans for further new products for the large enterprises as I’ve been keeping announcing. We’ll be announcing them as and when they are launched. So that’s the plan. At the same time if you see, your next question was about who is the competition. Most competition that we face for SMB segment is from players like Kaspersky and Sophos and in very large enterprises, we do face competition from Trend Micro and companies like CrowdStrike and Symantec.

Unidentified Participant — — Analyst

Okay, and another question that I had was in the retail segment, we primarily our entire business is in India. So there are many global players like Norton, McAfee who are able to actually sell online. So because of that, there are a lot of sales that can happen outside their individual countries. So what is actually restricting us to do the same thing like can we enter into other markets or is there some type of a restriction or some type of a strategy that we’re following right now.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

No. There is no restriction on that front. The names that you took, the players like Norton and McAfee like they are there since this market started actually like more than 30 years actually. And they are global brands which started in India. So currently Quick Heal is the market leader in Indian market but for global market to capture it takes a lot of branding activities and a lot of expenses. So we are gradually doing that based on the countries where we can, we feel that it’s the right market for our products because technology wise, product is ready for all the market but the developed countries, consumer market, consumer anti-virus market has moved towards premium. Actually most of the products are having free products throughout the countries like U.S. and Europe but that’s the case in developed countries where the sales is going down but the countries like Middle East or even European countries and the developing countries like India and adjacent countries like Southeast Asia, the markets are growing in single digits. So, that’s where our focus is. We are focusing in those countries and even focusing through online channels.

Unidentified Participant — — Analyst

Yeah. So primarily right now for the next 2 to 3 years, our main focus will be India and then going forward–

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Yeah, and similar countries like Southeast Asia and African countries.

Unidentified Participant — — Analyst

Okay. Thanks a lot, sir. That’s it from my side. Thank you.

Operator

Thank you. Our next question comes from the line of Dhwanil Desai Turtle Capital. Please go ahead, sir.

Dhwanil Desai — Turtle Capital — Analyst

Hi, good afternoon, sir. So this is my first call so maybe some of my questions may be pretty basic but the first question is, I think you mentioned that R&D and sales and marketing currently for this year constitute almost 50% of the revenue. So is this run rate on R&D and sales and marketing likely to continue going forward also. If you can elaborate on that.

Navin Sharma — Chief Financial Officer

Yeah, hi Dhwanil. Good question. So see, as we said that we are at growth phase. We are developing both new products as well as we are venturing into new markets and to increase our sales and product presence, these costs will be higher but at the same time when we have given this 30% to 32% EBITDA range in the newer products, even with these spends, even with increased spends, we will try to deliver this 30% to 32% EBITDA in the near term.

Dhwanil Desai — Turtle Capital — Analyst

Okay, so the normalized margin rates that we can expect even with this kind of spend is around 32%, 32%. That’s the right way to think.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Right. But just to give you a caution, since our business has a lot of seasonality in a full year basis, you can expect — we are determined and we are working to make sure that 30% to 32% EBITDA ranges on a full year basis.

Dhwanil Desai — Turtle Capital — Analyst

Okay, got it. My second question is slightly more broad based. So I was looking at our numbers and almost since the last 6, 7 years, we have been in the range of INR300 to INR350 crores revenue. The digitization is growing, the industry is growing, so what are the key challenges that we have faced and what will change going forward in next 3, 4 years so that we can be at, let’s say, maybe 500 crore, 600 crore kind of a revenue.

Kailash Katkar — Managing Director and Chief Executive Officer

If I talk about current year means in FY22, we have grown on revenue by 10% and first, we need to understand it from different segments. Retail segment globally has been growing at 4% run rate and this is — there is some industry analysis and we say that from FY20 to FY25, the growth would be in the range of 4% only and which is single digits, lower single digit, and we are growing at same rate. With respect to enterprise, while industry is growing at 11%, we are growing at double of that, more than double of that growth, and we expect to grow in coming years with higher double digit. As of now, we would not like to give any, let’s say, guidance on exact numbers when we are able to achieve or deliver this INR600 crore revenue but we expect in future also to grow in retail at lower single-digit and enterprise segment with higher double digit growth.

Dhwanil Desai — Turtle Capital — Analyst

Okay, got it. So, the only question is that if you can talk about the challenges that we faced in last 4, 5 years which kind of tempered our growth. Last year, I understand COVID for last couple of years, but even before that we were kind of stagnated around a single number. So is it because of the product mix. Is it because of the product readiness. If you can expand on that, what were the challenges and what, how are we addressing those challenges.

Kailash Katkar — Managing Director and Chief Executive Officer

So predominantly, Dhwanil, in earlier years, retail product was our core products and in last 5, 6 years there have been several events which — one part that industry itself is growing at lower single digit rate. And second, since we are more focused on India, there were 2-3 India specific events like when demonetization happened second GST came, if you’re not aware, let me help you understand that previously this product used to attract barely 5% to 7% service tax weighted [Phonetic] sector, VAT it used to attract 5% to 7%. With GST it has increased to 18% and at the end of the day customer — this entire cost of VAT has resulted into lower revenue because the same gross revenue was reduced by 18% tax which was 5%, 6% earlier. That was another aspect. And in addition to that this COVID also has impacted. So broadly, you can say 3, 4 — when the market itself is not growing in India, we had these 3 events industry specific, COVID and sorry, demonetization and GST and this COVID has impacted. That is the only reason that why we shifted, I will not say shifted, why we have increased our focus on enterprise segment, which is a high growth business and in last 4 to 5 years, the business has grown to currently on ARR basis, it was in this quarter, it was more than INR100 crores annual business and in this year itself we have delivered INR82 crore revenue on enterprise. So broadly, we do not expect a major shift in revenue or business in retail. That’s the large reason why we are increasing our focus and in fact, the 2 beta products which has released in this year, both the product are enterprise business focus and in similar fashion in coming year also we would be generate — we would be couple of products are in pipeline that will help us in growing our business further.

Dhwanil Desai — Turtle Capital — Analyst

Okay, got, sir. Very helpful, thank you. And sir, last question. I think as per your presentation, you have distributed INR200 crores as dividend and buyback and our cash flows as a company and as a business model will always remain very strong. We have a very strong cash balance. So in terms of capital allocation, the incremental capital will be returned to shareholders in some form or the other. Is that a right way to think.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

It will be a mix of both. As earlier in the statement, Kailash said that we are working with global management consulting firm who will be helping us in building our strategy and in that strategy whatever capital allocation required to go for, let’s say, organic as well inorganic acquisition that part will be there and balance money certainly will go to shareholders the way we have — and in fact, in this year also we have given, in fact, in this year also we have given — we would be distributing more than 30% of our profit in the form of dividends and needless to say that dividends once approved by Board.

Dhwanil Desai — Turtle Capital — Analyst

Got it, sure. Thanks, very helpful, Thank you, all the best.

Operator

Thank you. Our next question comes from the line of Rajeev Pandya, an investor. Please go ahead, sir.

Rajeev Pandya — Investor — Analyst

First of all, congratulations on the results, and I had a couple of questions. And my first question is where do we see our Enterprise Solutions revenue in FY23 and what kind of margins would we make in this business. Would it be better or similar to the retail or less than that.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Revenue for enterprise business was INR82 crore on full-year basis and since — and broadly margin on retail as well as enterprise business remains in same range.

Rajeev Pandya — Investor — Analyst

Okay, sir. So, I understand that. So, consumer segment has de-grown because of the COVID impact but where do you see the retail segment to grow in FY23.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Rajeev, unable to hear you properly.

Kailash Katkar — Managing Director and Chief Executive Officer

So, he wanted to understand how the retail is going to grow as Navin had mentioned in his speech that when it comes to the consumer revenue, they will be growing in a single-digit and when it comes to the enterprise solutions, they will be growing in a double-digit.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Higher double-digit?

Kailash Katkar — Managing Director and Chief Executive Officer

Higher double-digit

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

So sir, can you answer this.

Kailash Katkar — Managing Director and Chief Executive Officer

What question, means–

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Okay, Rajeev, if you could not able to hear Kailash, so what he is trying to say, in our retail business, we would be growing in FY23, we are — we should be growing at lower single-digit and enterprise business, we should grow at higher double-digit.

Rajeev Pandya — Investor — Analyst

Yes, sir. Sir, so my next question was that how the retail sales are going to happen like–sorry, can you update about the scenario of the government business as there is a focus on cyber security product and in the government departments are we benefiting out of it.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

See, these are some confidential things. Probably, it would be difficult for us to answer in this call.

Navin Sharma — Chief Financial Officer

It’s not only this call, it would be difficult for us to answer this question.

Rajeev Pandya — Investor — Analyst

Thank you. That’s just from my side.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Thank you.

Operator

[Operator Instructions] Our next question is from the line of Dhwanil Desai with Turtle Capital. Please go ahead, sir.

Dhwanil Desai — Turtle Capital — Analyst

Hi, sir. Thanks for the opportunity again. Sir, if you can help me understand how does the pricing part was both on the retail side and on enterprise side. So my question is more to elaborate the question. So as the volumes grow up and as our product matures, do the price go down significantly and how do we ensure that at least we are able to protect pricing at a certain level.

Kailash Katkar — Managing Director and Chief Executive Officer

First and most important thing that when it comes to the consumer products and enterprise products, we don’t have a single version. We have a range of products. Even in consumer products, we have AV Pro, we have an Internet security, we have total security. So total security is a premium product, which is at bit higher cost and the AV Pro is at a lower cost. So it totally depends upon the customer behavior. If customer is looking for a low cost product, we have the products available and if customer is looking for a better quality protection and multiple layer protection, then we have a premium product. So here the question is like we don’t want to lose any customer, let it be a elite customer or let it be a price sensitive customer, we don’t want to leave any customer and that’s the reason we have a range of products, not only in the consumer sector but even for the enterprise sector also the 3 products which we are talking about endpoint security even in endpoint security, we have a range of prices with the layer of protection. So that is how we take care of the customer without reducing or increasing the price of the product and that’s the reason you always see that ARPU on quarter-on-quarter basis. It keeps on varying because the number of licenses sold of AV Pro or Internet security or total security, it varies from quarter-to-quarter actually.

Sanjay Katkar — Joint Managing Director and Chief Technology Officer

Just to add just to add, exactly what Kailash said that basically price is decided upon multiple factors such as competition product, et cetera. So as you must be aware that our products are already price premium in the market with respect to competition and we are available in all range of products, available in the market. While these things are there but in place of increasing price of any of the product, our largest focus is to shift the market from cost conscious to premium products and this is the way how we would like to drive the market.

Dhwanil Desai — Turtle Capital — Analyst

Okay, got it. Thank you.

Operator

Thank you. [Operator Instructions] Ladies and gentlemen, we have reached the end of the question and answer session. I would now hand the conference over to Mr. Naveen Sharma, CFO from Quick Heal Technologies Limited for closing comments.

Navin Sharma — Chief Financial Officer

Thank you all for participating in this earnings concall. I hope we have been able to answer your questions satisfactorily. If you have any further questions or would like to know more about the company, please reach out to our Investor Relations managers at Valorem Advisors. Thank you. Stay safe and healthy. Thank you.

Operator

Thank you, sir. [Operator Closing Remarks]