Quick Heal Technologies Limited (QUICKHEAL) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Q3 and 9 months FY '25 Conference Call of Quick Heal Technologies Limited, hosted by Valorem Advisors. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Ms. Nupur Jainkunia from Valorem Advisors. Thank you, and over to you, ma'am.

Thank you. Good evening, everyone, and a very warm welcome to you all. My name is Nupur Jainkunia 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 call for the third quarter and 9 months of the financial year 2025. Before we begin, a quick cautionary statement. Some of the statements made in today's earnings 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 conference call is purely to educate and bring awareness about the company's fundamental business and financial quarter under review. Now I would like to introduce you to the management participating with us in today's earnings call and hand it over to them for opening remarks. We have with us Mr. Kailash Katkar, Chairman and Managing Director; Mr. Sanjay Katkar, Joint Managing Director; Mr. Vishal Salvi, Chief Executive Officer; Mr. Ankit Maheshwari, Chief Financial Officer of the company. Without any further delay, I request Mr. Vishal Salvi to give his opening remarks. Thank you, and over to you, sir.

Thank you so much, Nupur, and good evening, everyone. Thank you for joining us today as we discuss Quick Heal Technologies performance for the third quarter of FY '25. Our Q3 performance has been below par largely due to our consumer and government verticals not performing to expectations. However, we are seeing a healthy pipeline being built up, and hence, we are confident of our outlook for FY '26. We are continuously working towards the pivot of the organization across three levels of products, solutions and customers. I'm pleased to share that we are starting to witness a successful execution of our strategic initiatives, which have started to translate into a visible outcome such as key product launches, strategic collaborations, order booking getting created and new product pipeline, et cetera. Speaking on the product innovation and customer-centric solution aspects, in the third quarter, we successfully launched AntiFraud.AI, our groundbreaking fraud prevention solution with a nationwide marketing campaign. This demonstrates our thought leadership in the cybersecurity domain through innovative solutions to address critical cybersecurity challenges. With the ever-growing cyber fraud landscape, this becomes a timely solution for all Indian citizens to counter these threats effectively. Our strong product and R&D organization continues to deliver cutting-edge solutions. This quarter, we launched the Seqrite Malware & Analysis platform, what we call SMAP, and the Cyber Threat Intelligence Solutions, with the first threat intel order already secured. These innovations reflect our commitment to addressing evolving customer needs and staying ahead of the rapidly changing threat landscape. These solutions are created on the foundation of deep research at our Seqrite Labs, creating a value layer for democratizing malware analysis and the cyber threat intel. Additionally, the recent release of the digital personal data protection provisions has created a good number of opportunities in the market interest for us. Our Seqrite data privacy products are well positioned to capitalize on these regulatory changes, and we are already seeing an increase in customer interest and the RFPs. The Seqrite Endpoint Security, our flagship product, has achieved a prestigious AV-Test Corporate Endpoint Protection certification, a testament to our Excellence in Enterprise Security. Let me also share more on our journey towards catering to higher customer segments through brand and marketing, strategic partnerships and collaboration and sales organization readiness. We launched the second edition of our annual India Cyber Threat Report at the Data Security Council of India Annual Conference last year. This report provides critical insights to -- into emerging threats and trends, helping organizations to stay ahead of curve. The report has been well received by the customers for the last couple of years, as this is the only source of information related to India-centric cyber threat landscape. This quarter, we signed MoU with Banking Institute of Rural Development, Lucknow, to foster collaborative research and development in cybersecurity. These partnerships will enhance our capabilities in advanced threat detection and response, further solidifying our position as a trusted cybersecurity partner for the financial ecosystem. We also have existing MoUs with NFSU and IIM Nagpur for similar strategic collaborations. To support our growth ambitions, we have onboarded key hires in the mid-management roles, including regional sales directors, customer success manager and Head of Quick Heal Academy. These strategic hiring will drive innovation, customer successes and market expansion. We have initiated India-wide campaign -- marketing campaign for anti-fraud products to drive user awareness in this category. We are aggressively working towards pruning and refining our strategies basis with output and consumer feedback. As you all are aware that cybersecurity industry faces a huge gap in the cybersecurity talent versus the industry requirements, and this is widening on a day-to-day basis. There's a massive drive of capacity building and awareness in the country -- in the country driven by central and state governments to bridge this gap. It presents a massive opportunity and rise in demand for us being a cybersecurity leader in this domain. As a result of this, we are seeing a good pipeline being built up for our Academy business, which will play an important role in our future growth. As we progress to FY '25, our focus remains in simplifying cybersecurity for millions of customers worldwide. With a strong emphasis on innovation, strategic partnership and customer-centric solutions, Quick Heal is well positioned to maintain its leadership and global cybersecurity landscape. Thank you for your continued support. With the pivot in transformation changes for the organization, it does take time, but we are excited about the opportunities ahead and remain committed to delivering value for our customers, partners and shareholders. Now I'll turn over to Ankit Maheshwari, our CFO, to provide further details on our financial performance. Ankit, over to you.

Thanks, Vishal. Our Q3 FY '25 results highlighted muted performance in the quarter alongside structural shifts in our business with a growing order book and building of deferred revenue. Our consolidated revenues for the quarter stood at INR 71 crores, marking a 4% decrease quarter-on-quarter and a 14% decrease on a year-on-year basis. As Vishal highlighted earlier, the decline is largely due to headwinds in the consumer business and government vertical. While the competitors in the consumer vertical have been struggling due to industry-level degrowth, we have shown resilience against market challenges, thanks to all the initiatives within the business that we have taken. The government orders are pushed forward in timelines and have not been concluded yet. Revenue for 9 months FY '25 stands at INR 214 crores, depicting a 1% year-on-year growth. The split between consumer and enterprise business remains at 62% and 38%, respectively. We have made conscious investments in Horizon-3 product launches and the market launch of anti-fraud product. I am happy to state that we have launched the new product in the Horizon-3 category as we had committed. While it might have impacted the profitability in the short term, which is Q3, these are long-term investments made towards our growth story for the future. We follow prudent accounting practices, expensing all R&D investments. EBITDA for 9 months of FY '25 stands at INR 1.9 crores, while the Q3 FY '25 EBITDA remains at negative (sic) [ positive ] INR 3.8 crores. Our PAT for the quarter is INR 0.1 crores. I would also like to bring to your attention some key highlights as we speak to you today. For the first time, our enterprise order book has crossed materiality and as on date stands at INR 7.2 crores as against INR 35 lakhs at the end of quarter 2. Our deferred revenue has been gradually building up, and we have added around INR 8 crores over a period of 9 months of this year and stands at INR 10 crores at the end of quarter 3. This enables us with higher comfort and predictability in the business as we progress in further quarters to come. We are a cash-rich company focused on creating long-term value for our shareholders. We remain committed towards our vision of transformational pivot of the organization. Beyond business, we continue to make a positive impact through our Cyber Shiksha for Cyber Suraksha initiative, which has touched over 64 lives as on date. We recently hosted the Cyber Suraksha Awards 2025, honoring volunteering students, teachers and colleges for their contributions to cybersecurity awareness. With that, I would like to open the floor for the question-and-answer session. Thank you.

[Operator Instructions] The first question comes from the line of Mihir Manohar from Carnelian Asset Management.

I just wanted to check when we see the sales and marketing expense, that is close to INR 23.7 crores for the quarter versus INR 20 crores on a Q-o-Q basis. So is it that we have accelerated the S&M cost? If you can put some color around that, that will be helpful.

Yes. Thanks, Mihir. So on sales and marketing, we have -- in this quarter, launched our anti-fraud product. Because of that, there were some onetime expenses, which we have incurred. Please note that these were all budgeted in our budgeting size. Overall, we also believe that these expenses will go more in the future, because when we launch a consumer-type product, we have to do a lot of awareness campaigns in the market.

Sure. Understood. And what would be the onetime kind of a number?

We don't disclose these numbers, but it was more than INR 2 crores to INR 3 crores.

Understood. Sure. Second question was just on the new product launches, Seqrite Malware & Analysis and Seqrite Threat Intelligence. So if you can throw some light, some color as to which are the areas that you are trying to address. I mean, what kind of opportunities are here? That should be helpful.

Yes. Thanks, Mihir, for that question. So, Seqrite Malware & Analysis platform is actually a solution which will help in organizations to do a deep analysis of any malware file through a full automation. And it -- it goes through multiple phases of review before you are able to give a verdict, including a dynamic and static analysis of the files. So the -- think of it is like, there is a huge demand for malware analysis talent in the market, and there is very low supply. And so the only way to solve this problem is to democratize it by creating such platforms which are available. So this is actually a one-of-its-kind platform from India. And there are multiple use cases in terms of state government, central government and large enterprises who would be actually using this platform to have a tool available in their hands to do real-time analysis of the malware files received in their organizations. So we are extremely bullish about the prospect of its consumption in all these opportunities, that I just talked about. And as far as the Cyber Threat Intel is concerned, it is something which is, again, actionable intelligence that we provide through this platform to -- for its consumption by enterprises, whether it is again, government bodies or enterprises, they can ingest these actionable intelligence into their security operations center and able to actually immunize their computer infrastructure from threat emanating from those actors -- threat actors. So both these products are actually on the foundation of our cyber threat research that happens out of Seqrite Labs, which is the largest malware lab in the country. And all of these have been created on the foundation of the work, that research work that we do.

One last question was on the deferred revenue and order book. Is deferred revenue and order book one and the same or are they different?

So these are two different things. Order book is what we say a confirmed orders in hand. While when we invoice it, it will either convert into the recognized recognition of the revenue or it is being deferred. Does it make sense?

Yes. Sure.

[Operator Instructions] The next question comes from the line of Jalaj from Svan Investments.

I hope, I'm audible.

Yes,sir. Please go ahead.

Sir, so I just wanted to understand how should we read into the order book as in -- I hope, these are majorly would be -- or a major chunk would be from enterprises, but over what period of time these need to be delivered? Because if I were to take a book-to-bill ratio, it comes out to be a very small number there, only 0.3 on terms. So how should we read about it? Could you talk about it?

Yes, Jalaj. Thank you. So while Mihir gave the same question, but let me explain it again. An order book is a detailed record of confirmed purchase orders, contracts in hand, mainly from our enterprise vertical that have been formally agreed upon. In the history of Quick Heal, we are first time showing enterprise order book, which is material now. Earlier, it was not material, because in my earlier speech also, I said that it is about INR 35 lakhs in Q2. These orders are yet to be fulfilled and billed depending upon the contract tenure, generally over a period of 1 to 3 years. This order book includes clients both from domestic as well as international customers.

Sir, so just to add to it, sir, let's assume, if I were to see the last year run rate or even this year's run rate, so we are sitting on a INR 30 crore enterprise revenue per quarter. That's broadly it has been. So is it fair to assume that this order book is over and above that? Given that's a normal run rate, which...

In fact, both deferred revenue as well as order book is over and above that.

Okay. Okay. So currently, whatever we are booking into enterprises as a revenue was much more on a short-term basis. Is that a fair way to understand it? Or as in, I'm just trying to understand the current status quo in the enterprise revenue. How does that differ from the order book? Because you said for the first time, we have reached to a sizable amount. So currently, if we are running on INR 30 crores, INR 40 crores, INR 30 crores run rate quarterly run rate, that revenue is currently not on basis of some sort of order book. Is that the way we should think about that?

So whatever we are doing is the BAU. This is -- since we have started tracking the material orders and we are receiving material orders, we are trying to capture those material orders and have been shown separately. Overall, this is in addition to what we are showing in the earlier quarters and in this quarter.

So in a way, Jalaj, what you're saying is right. This is over and above the run rate business that we have right now.

Got it. Got it, sir. And sir, one more thing. So we have been talking about that the sales cycle in enterprise is a little longer and the first step is you do a POC with the enterprises. So where are we on those? Or could you give us -- best could be if you give us some quantitative number on to that as in where are your -- how many places or enterprise are we right now doing our POCs? And some flavor on to what it would be last quarter or a year back, so that is directionally where we are.

I think, I can give you a slight color to that in the sense that our overall pipeline is healthier than what it used to be. I think, in the past 1 year, our pipe has doubled. Similarly, our rate of POCs and engagements with enterprises have also increased. So that we are seeing a gradual regular increase in both of these activities for the enterprise business.

Okay. So just trying to dive deeper. So could you quantify some more color on to healthier per se, because I assume, we have had first fruits of success in terms of order book that shows up. But as in how far are we from that inflection point, I just wanted to understand that.

Yes. I think, once you start looking at these -- because these are the two parameters that we have introduced additionally right now and henceforth, we'll be maintaining it. You will start getting a good view about how that order book, deferred revenue and plus revenues are stacking up. At this moment of time, we are not yet making our pipeline numbers public comparative as well as absolute. But maybe in future, we would look at that. But I would say that as you look at us on a quarter-on-quarter basis, you will be able to see how that progress is unfolding.

Understood. Understood. And one last question. So have you had some initial success in the DPDP Act implementation product for us? Because that's one product, I guess, we have been ready with our product and we have been very bullish about that.

Yes. So, like I said in my opening remarks, basically, we are seeing a good amount of interest and traction coming up. We have also started bidding in large RFPs. We are also getting shortlisted in some of them. So that is a good progress for us. And -- but we are still like you also know that we are still waiting for the enforcement guidelines to come in. But we are starting to see some kind of momentum towards bidding for RFPs and generating POCs.

Understood. And then currently, on the enterprise, could you give us some flavor as to what sort of revenue does government form as in the -- what would be the split between businesses and government, B2C and B2B?

See, broadly, what we have mentioned in past also is that our government business is around 20% of our enterprise business. It has been sluggish for this quarter. But generally, the run rate business is around 20% of the enterprise business.

And that has been so in the past -- let's assume, for the past 1, 1.5 years, that is the way it has been?

That's right.

The next question comes from the line of Vimal Gohil from Alchemy Capital Management.

Yes. I think...

Sorry to interrupt you, sir. Sir, your audio is not clear. May I request you to use your handset, sir? No, sir, we are not able to hear you, sir. There's a lot of disturbance.

Vimal, we have some kind of breaking of your voice, but why don't you go ahead with your question and let's see if we can make out what you're asking.

Sure, sure. Apologies for this, but I'll still go ahead. So I just wanted to check, so what -- I think, what questions are arising of your order book details is that your current run rate -- quarterly run rate of enterprise is at about INR 25 crores, INR 30 crores versus an order book status of INR 7 crores and a deferred revenue of INR 10 crores. So how does that match with -- how does that match? Typically, when you have deferred revenue, this will be 1x or 1.1x of your revenue, of your total revenue, typically for most of -- for a product company. So how does that math work?

So Vimal, what I would say is that, so far, when you look at it, we had a run rate business, right, on a quarter-on-quarter basis. This is the first time we have been able to create, we have realized that the amount that is there in terms of deferred revenue as well as order book is material. This is all over and above our run rate business, and that is the way you should look at it. So, so far in the history of Quick Heal, we have largely been booking our numbers and showing and these two segments did not have any material number for us to report. Given that the way our business is changing, the way we are introducing new products, the way -- I talked about three launches already, right? I talked about Academy business. I talked about Cyber Threat Intelligence. I talked about SMAP, all of these products, the revenue recognition happens over a period of time. And as we start seeing a revenue accumulated through these products, we will naturally start having these areas coming up together. So the current run rate business from all of the products will continue as it is. These are additional -- additions which are coming up, which will start adding, and that's why we have started publishing numbers as well. I hope that clarifies.

Yes. So basically, what you're trying to say is -- so about INR 28 crores of, let's say, annualized quarterly order book or order book, right, versus INR 120 crores of existing revenue. So INR 120 crores over and above, if you assume that there is -- that the run rate business continues to remain at the level at which it is and you are able to 100% execute your order book, you are looking at a INR 120 crores plus INR 28 crores of revenue for FY '26. Is that the correct math?

I mean, you can do. It is very simplistic math, but...

Yes. But this is from my understanding.

Yes. So Vimal, the reason why we are saying it's not that simple addition, because the tenures could be different for the order book. It could vary from 1 to 3 years. For deferred revenue order book, it could vary from 1 to 3 years, right? So -- but largely, what you are saying is correct. Order book as well as deferred revenue is on top of the BAU business, what we are doing, what we have reported.

[Operator Instructions] The next question comes from the line of Arunachalam V., who is a freelancer.

Yes. I'm very happy that your organization is leading the IT security solutions space as a pioneer. See, just wanted to know what is your market share in the field, be it total security, Internet security, antivirus. What should be your market share?

So our -- we are a market leader as far as India is concerned in the antivirus consumer space. Our market -- current market size is around between 35% to 40% as compared to our competition.

In all your segments you operate, right? Or is it any specific?

This is specifically for our consumer antivirus.

The next question comes from the line of [ Navya Gautam with Sicomoro Advisors. ]

I just missed the introductory part of the call. So I just wanted to ask one thing that there was an increase of 23% Y-o-Y on general admin expense. I would just like to know what is the major driver in the expense side rise?

Yes. So this was a sluggish quarter for us and due to headwinds in our consumer business, we were not able to make the planned collections. So as per the accounting standard, we have to make a provision for doubtful debts of about INR 2 crores. Please note, this is just a provision and there are no bad debts. But since we are following IGAAP, we have to follow the accounting standard and we have to make a provision of about INR 2.5 crores.

Okay. Okay. And why was the reason for a revenue decrease in the consumer segment?

Sorry, can you repeat?

What was the reason for this downfall in revenue for the consumer segment?

So we were facing some headwinds. And because we were not able to make the collections, there was a pressure on revenue also, so we were not able to bill it.

But Navya, I think, broadly, if you look at the antivirus consumer business, there has been overall globally as well as in India, there has been a degrowth. While overall, there has been a degrowth for -- Quick Heal has been a market leader in India, as I mentioned earlier in the earlier question. Secondly, we are working on a flattish kind of a revenue projection, and we want to keep the same thing for the rest of the year as well. So while overall, as an industry, our competitors and everybody are degrowing, we will remain flattish. So -- but having said that, those headwinds are still relevant for our business also. And that's why we are seeing those headwinds and the growth challenges.

[Operator Instructions] The next question comes from the line of Amit Agicha with HG Hawa.

Yes. Sir, my question was with respect to the cash flow situation, like what is the expected cash flow situation given the continued investments in research and development and marketing? And are there any pricing changes planned for existing products to improve the margins?

So our cash balance is static as compared to the previous quarter in spite of the fact that we have made a commitment, we have made a Tier 3 data center in our Pune office, where we have spent a good amount of CapEx. In spite of that, our cash balance is at the same level of INR 190 crores.

INR 190 crores, you're saying?

Yes. Cash and investment balances is INR 190 crores.

And sir, any pricing changes planned for existing products to improve the margins?

So it's a market dynamics. Based on the competition and other factors, we keep on reviewing it on a regular basis. And as and when required, we will do that course correction.

[Operator Instructions] The next question comes from the line of Amit Agicha with HG Hawa.

Sir, can you share any details on the -- like the employee retention strategy, especially in R&D and sales? And how is the company addressing the talent acquisition in AI-driven cybersecurity?

Yes, Amit, thank you so much for that question. See, our attrition is at an all-time low. And within that, it is much lower in our R&D team, right? So we feel very comfortable in terms of how we are working with our employees. It's a very important aspect of our strategy. We measure our employee engagement score year-on-year. This year also, the engagement scores are out and they're slightly higher than last year. So overall, that is also something which we track. Building a right culture, right empowerment, giving our employees challenging activities and tasks to do. All of that is part of our strategy to retain, reward and recognize our employees. So we will -- we continue to have that focus. At the same time, whenever we are looking for talent from the market, we have a very elaborate process of selection and identification. And we benchmark our compensation with the market. And we are very happy that we are able to attract very good talent from the market across all levels.

Sir, may I know the employee count?

On an average, our employee count has been around 1,000 -- hovering around 1,000 for the last few years.

Okay, sir. And can you share the percentage of revenue that comes from large enterprises clients versus the retail consumers?

Against the retail consumers?

Yes, the large enterprise and the retail, the bifurcation.

Yes. So maybe, Ankit, do you want to take that?

So, the split between consumer enterprise is 62% versus 38%. So 38% of our business is coming from enterprise and 62% from consumer market.

And sir, last question, like how diversified is the company's client base to mitigate risk from government spending cuts?

We feel very comfortable that we don't have any concentration risk from any one client. And it is very, very evenly and widely distributed across multiple customers.

And sir, any major customer wins or partnerships that will drive revenue in the next few quarters?

Yes, there are -- there is one which we just talked about in our commentary also that we have won a large Threat Intel deal. We will be sharing the name of the customer in future, once we have their consent as well, because just recently, we have acquired. But I think apart from that, we also have one international deal for Academy, which is again a large. So yes, I mean, we keep having multiple deals coming up on a quarterly basis.

And sir, are there any revenue targets for the new cybersecurity solutions like Seqrite Threat Intelligence and AntiFraud?

Yes. I think internally, we do have a very robust business plan and targets, which all our business teams are to be accountable for. We don't make these public as yet on a product-by-product basis, but we do have internal clarity in terms of what we want to do and how we want to have a business plan for each of the products.

The next question comes from the line of Jalaj from Svan Investments.

In this current enterprise business, could you give the split across the various products, let's say, the endpoint security, Zero Trust solution and the -- basically, I wanted to understand what has been the split across the older products and the newer products?

Yes, Jalaj, thanks for the question. We right now do not make these split public across our enterprise products. But as we grow and mature, perhaps in future, we would be able to do this.

Some qualitative picture on to that, maybe not exactly -- it would be helpful there.

I mean, at this point of time, I'm afraid I'll not be able to give you even qualitative picture. But like I said, maybe in future, as we -- because these are all newly launched solutions. So they are early stages of their getting into the market. But you will get to see in terms of how we start announcing large deals in future. But I think in future, maybe we will start sharing that and making public. But right now, we don't.

Got it. And then one last point. On the deal win, which is the order book you announced, is it in the -- I'm assuming it is from the new products which have been launched as the Horizon-2 or Horizon-3 you have been talking about. Would that be a right assumption?

Yes. Your understanding is correct.

[Operator Instructions] The next question comes from the line of Mihir Manohar from Carnelian Asset Management.

Yes, sure. I wanted to understand the DPDP side. So basically, we have, [indiscernible] which is an addressable area here. What are the different products do we have to cater to this market? And on a broader basis, what could be the average deal size that we can have for this particular area?

Mihir, thank you for that question. See, I think, you actually hit it spot on, because DPDP is not only about the data privacy product that we have. But basically, cybersecurity products are a foundational element to build -- bring in the necessary controls which are required to achieve DPDP compliance. So our data protection products, our Zero Trust access products, our mobile security products, all of these are relevant solutions to improve the overall posture of privacy in a given organization. If you go by the global markets, you find that whenever any large regulations such as DPDP has come into play, the overall spends have grown not only in the privacy space, but also in the cybersecurity space. So we do expect that, it is not only going to boost our data privacy solution, but it will also boost the other products that we have in our kitty, okay? Now in terms of the deal size is concerned, if you look at a mid-market kind of a customer, especially for DPDP compliance, the size of the deal can vary anything between INR 75 lakhs to INR 3 crores, right, depending on that. So -- and if you go to larger enterprise, and that number will grow further. So that would be typically the ticket size for a mid-market to a large enterprise customer.

Understood, sure. So this is basically for making the entry sort of the piece, you land at, let's say, INR 75 lakhs to INR 3 crores, and then maybe you expand it to different areas and that would be agency, right?

Yes.

Understood. And just one last thing on this, DPDP. I mean, I went through the rules, but I was not getting the penal provisions, because the penal provisions that were talked about, they were quite severe. But when I went through the rules, they were not that severe. So I mean, any color around that, how quickly and to what all enterprises will be enforceable? Because the rules also have not mentioned, what is the threshold limit to these rules -- particular rules will be applicable, any [indiscernible] threshold or any network threshold has also, have been mentioned in this?

Yes. I think, see, the whole intention of the penalty is to motivate organization to adopt and take the rules very seriously, okay? It acts more like a deterrent, then the intention is to actually penalize organizations. What we are given to understand is that obviously, those organizations, large organizations, social media platforms to process personal identifiable information will actually be held more accountable for how they process and use that data versus a smaller organization, which does not process as much data and may not cause as much harm to the citizens of the country. So they will actually calibrate the penalties based on the exposure and the size of the organization and the ability for them to invest in protecting that data. Having said that, I think the government of India is extremely serious about getting compliance to the provision. And so, any organization which has been found to be blatantly ignoring and not following the basic hygiene, that is required for cybersecurity or privacy would perhaps fall in the category of getting penalized.

[Operator Instructions] As there are no further questions from the participants, I now hand the conference over to management for closing comments.

Thank you so much for all of you to have joined today and asked very good insightful questions. Hope to see you again in the next quarter. Thank you so much.

Thank you. On behalf of Quick Heal Technologies Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.