Ladies and gentlemen, good day, and welcome to the Q2 and H1 FY 2025 conference call of Quick Heal Technologies Limited, hosted by Velorum Advisors. As a reminder, all participants' lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Ms. Purvangi Jain from Velorum Advisors. Thank you, and over to you, ma'am.
Good evening, everyone, and a warm welcome to you all. My name is Purvangi Jain from Velorum 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 second quarter 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 the 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 their opening remarks. We have with us Mr. Vishal Salvi, Chief Executive Officer, and Mr. Ankit Maheshwari, Chief Financial Officer. Without any delay, I request Mr. Vishal Salvi to give his opening remarks. Thank you, and over to you, sir.
Thank you so much, Purvangi, and good evening, ladies and gentlemen. I'm Vishal Salvi, CEO of Quick Heal Technologies Limited. Welcome to our Q2 FY twenty-five earnings call, and thank you for joining us today. As we navigate through an era marked by rapid digitization, technologies such as 5G connectivity, cloud, AI, and ML, which are shaping the way we live and work, this transformation and the rise of the hybrid workspace setup has led to a larger attack surface and more advanced cyber threats. Driven by our core purpose of innovation, simplicity, and security, our primary goal remains to protect individuals, enterprises, and government organizations from this ever-evolving threat landscape. Our journey started as a consumer antivirus company, and the reason for our three decades of existence is due to the trust that our end consumers have placed on Quick Heal.
The challenges of these consumers have evolved, and they are a constant target of financial frauds. Being a market leader in the consumer security domain, we have taken the onus upon us and launched AntiFraud.AI, a groundbreaking innovation, first of its kind, to help customers prevent these frauds. AntiFraud.AI retraced our dedication to securing India's future, allowing every citizen to participate in the digital economy with confidence. I would urge all of you to give it a try and experience the innovation. Talking about innovation, it gives me immense pleasure to state that our products and solutions have received multiple accolades in the first half of this year. We received yet another patent, taking the tally to a total nine. Seqrite XDR has been awarded the prestigious AV-TEST Approved Advanced Endpoint Detection and Response verification.
Our endpoint security solution received a perfect score of 18 out of 18, featuring as the top product in the recent test conducted by AV-TEST, an independent global cybersecurity testing body. Quick Heal's Total Security also received an excellent score of 17.5 out of 18 in a similar test conducted by the body. All this has been possible due to our malware analysis center, Seqrite Labs, which is India's largest malware research and analysis facility, producing unmatched threat intelligence. In our commitment towards deep research and innovation to tackle the advanced malware and dynamic threat landscape, I'm happy that Gangadhar Shivaputrappa has joined us to head the Seqrite Labs. Let me deep dive a little bit on our business and our go-to-market and performance.
We have delivered a robust 11% growth in revenue and 238% growth in the EBITDA in the first half of this year. Despite market challenges, we have significantly improved our consumer business. We are committed to creating consumer awareness, leveraging social media platforms and micro influencers. We have started to work extensively to create the market demand and penetrate the product, AntiFraud.ai. We believe that twin offering will create a synergy for each other. However, our enterprise business saw a sluggish quarter, leading to a dampened growth than expected. This has been largely due to the non-closure of some of the key government orders and also our enterprise sales pivot, which is still work in progress. As we move up the consumer segment in the mid and the large enterprises, we compete against the globally best solutions available to fulfill customers' demands.
It is heartening to see the initial success stories that we have been able to create. We secured a contract with one of the largest logistics companies in the industry to modernize their cybersecurity stack, increasing visibility and protection for their customers. For a leading media company, we solved the problem of securing remote access to its hybrid workforce through a Zero Trust solution. Similarly, a staffing company, we elevated their security posture of the organization through our XDR protection stack. For a healthcare company, we replaced their existing vendor for our improved product performance and support the ecosystem. Government is a key stakeholder to our journey, and we work hand in hand with the customers across nations, states, municipalities, and PSUs to succeed together. Important point to note here is also that in all the above stories, we were competing with the top global companies.
While these are our initial success stories, we are striving together, replicating them on a scale. With this, I would like to invite Ankit, our CFO, to walk you through the financial performance.
Thank you, Vishal, and good evening, everyone. Our consolidated revenue for the quarter stood at INR 73.5 crores, marking a 5% increase quarter on quarter. Having said that, on a year-on-year basis, there is a decline of 6% in the revenue due to sluggish enterprise business, as Vishal highlighted earlier, alongside the headwinds in the consumer business. 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. However, we are mindful of improving our collections and are monitoring it very closely and working towards improving it in the next half year. As we speak, the split between consumer and enterprise business remains at 62% and 32% respectively. Our growth is aligned with our commitment to profitability.
EBITDA for the first half of FY 2025 stands at INR 5.7 crores, as against negative EBITDA of INR 4.1 crores last year, H1. Our PAT for the quarter stands at INR 4.1 crores. We have taken several investment initiatives within the company, like initiation of Horizon 3 products development, leadership strengthening, et cetera. Through effective cost management, we have maintained steady expenses at INR 71 crores. We follow prudent accounting practices, expensing all R&D investments. Additionally, we continue to invest in sales and marketing to enhance consumer awareness and bolster the Seqrite brand through events and sponsorships. The efforts will be further amplified as we would be focused towards category creation and awareness of our flagship product, AntiFraud.AI. We are a cash-rich company focused on creating long-term value for our shareholders.
We are focused on and geared up towards bettering ourselves in the next half of the year. With that, I would like to open the floor for the question and answer session. Thank you.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to withdraw yourself from the question queue, you may press star and two. Participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Deepak Sanskar from Trustline. Please go ahead.
Good evening, everyone, and thanks a lot for the opportunity, and congratulations for the launch of such a unique and need-of-the-hour product. So firstly, what is the kind of marketplace for the anti-fraud product in India?
Thank you so much, Deepak, for your question. See, this is the first-of-its-kind product that is getting launched in India. We are creating a new category, and this category is in the space of anti-fraud, and it is specifically tackling the growing challenges of fraud calls and fraud, fraudulent attempts, which are being faced by unsuspecting consumers on their phones and on their computers. And as you know, they are all focused on using the social engineering techniques to extract, you know, funds and extract money in an unauthorized manner from these consumers. And these numbers are only growing.
So basically, this is a completely new category, which will address it from a 360-degree point of view in terms of the foundational elements of cybersecurity, which is looking at fraudulent links and phishing attempts which have been made, and rogue websites that are being connected by the users from their computers as well as their phones. But you know, once it goes beyond that, we have also added features which will you know give you spam alerts, fraud alerts on a proactive basis, show you all the hidden applications which are running on your mobile phone. It will show you the unintentional use of your mic and camera while your phone is not in use, and so on, so forth.
And in addition to that, it has got cool features like, you know, unauthorized OTP access, not just on your phone, but also on your parents' phone or your loved ones. So basically, it's attempting to have a technology solution to address the problem of frauds on unaware customers. So it basically has a huge potential in the market because of the category that has got created. And now we have a India-wide go-to-market plan through various ad campaigns and various, you know, plans that we have through our channel partners and alliances to get this app to as many customers as we can.
Okay. And sir, who are our real target segment? So nowadays we can understand that most of the financial transactions are happening through mobile phones in even cities and even in rural areas. So are we targeting in the sense all mobile phone customers? Or is it a certain age group or certain income profile? How do we target that particular segment?
See, this is a B2C product, right? And so, if you look at the fraud, the fraud is indiscriminate. It is getting, you know, anybody who has money is getting impacted by frauds, right? So basically, any citizen or any resident of the country which is having financial independence or finance, and money in his bank accounts and is regularly doing transactions, is a potential victim. And so those are also our potential customers. So as you know, this is a mobile-first kind of a product, and we have more than 850 million mobile users in the country, and growing. So from that point of view, you know, it's a humongous amount of opportunity that is available out there in terms of reaching out this product into them.
Okay, what is the kind of revenue target we have in our mind for medium term, like, over three to five years from this product funnel?
We are right now not sharing our revenue targets for this product, but of course, you know, on a quarter-on-quarter basis, we will be sharing with you, how the revenues are panning out as far as this category is concerned. I can confirm to you that the product is already launched, and we have already started shipping, as well as the downloads have already started from the Play Store and the App Store, and so the revenue has already started getting generated from this quarter onwards.
Okay, so lastly, from my side, we want to-
May I interrupt you, sir? I request you to come back for a follow-up question.
Okay. Thank you.
Thank you. Ladies and gentlemen, you may press star and one to ask a question. The next question is from the line of Shankar Narayanan from Artha Financial Consulting. Please go ahead.
Good evening, sir. Thank you for giving me this opportunity. So in the previous year, the percentage of R&D spending as a percentage of sales have been increased, but that haven't translated much into the revenue part. Could you throw some light on this one?
Thank you for your question, Shankar Narayanan. See, the way we look at it is that we have started our journey as a company being a, and, you know, consumer antivirus company, right? And around seven years back, we pivoted also and diversified into enterprise security business. And from then on till now, like Ankit mentioned, the split between our consumer business and our enterprise business stands at 62 versus 38%. So there's a 38% diversification which has happened in the last so many years. And so you know, we have always adopted a strategy of diversifying and looking at any new growth areas of businesses in cybersecurity, and that's what we are continuing to do.
So just like we have made that growth and our core is shifting from consumers into enterprise, we also believe that once we start seeing the investment that we are doing now and in recent past, in our Horizon two and Horizon three solutions, will start generating revenues and increasing our business mix in the coming future. The opportunity is humongous, and we have just started to see a growth and our new products have started to generate revenues for us. So, you know, I think we believe that our strategy is really working well, and cybersecurity is one thing where, you know, we have to invest now to start looking at the future in the next two to three years.
Thank you, sir. And one more question: can you give some guidance on this financial year on your revenue and margin and PAT perspective?
See, we have not given any guidance. We don't give guidance, you know, on the revenue PAT and, you know, our overall financial performance. All we can say, and we have said it consistently, is that we are focused on profitable growth, and that is what we endeavor to do in coming quarters as well. One thing we wanted to say is that we overall are focusing on a very long-term approach in terms of how we look at our investments and our plans. So we would, you know, ensure that we are always staying true to that.
You know, like we had committed earlier, that we would be releasing new solutions and products, and I'm very happy to announce to you that, you know, we announced a new solution now in the market, which is a completely new category, and you can expect that from us. So, I think, you know, we are really looking at the future, but like I said, we don't give guidance in terms of our financials and, you know, how we are going to do this year as well as future.
Thank you, sir. And the last question is regarding your new product, AntiFraud.AI. So recently, Bharti Airtel also launched a feature, which will be applicable for Airtel users, which will detect the fraud and scam alerts automatically. So, how different is this from the product that they have launched? And, is there any specific features that you have implemented?
Yeah. So basically, you know, Bharti Airtel, all telcos are able to look at scams and scam alerts, and as you know, a lot of the frauds are getting initiated through such scams. So that's really how we are there looking at their lenses about looking at frauds and scams coming out of the phones and alerting their customers. We definitely have that feature in our product, but our product has got a lot more features that I just talked about earlier. And so our product is a 360-degree solution, which is covering a holistic fraud management and not just from a telephone telecom point of view. So we have carrier features, we have phone features, we have cybersecurity features, and in addition to that, we have banking process control features.
All of these four combined together give a holistic solution for fraud, fraud management.
Thank you, sir. I hope this product succeeds. Thank you for the session.
Thank you. The next question is from the line of Pankaj, from Affluent Assets. Please go ahead.
Hello, am I audible?
Yes, Pankaj, you are.
Yeah, thanks for taking my question. I'm new to this company, just wanted to understand what had gone wrong post FY 2022 that our margins collapsed from 30-plus% to below 10% now?
Can you just repeat your question, what has gone wrong between FY twenty-two and now? Is that what your question is?
Yes, yes, yes. That our margins have collapsed, completely collapsed from, say, 30-plus% to current less than 10%.
Yeah, yeah, I got it now. See, I think, Pankaj, see, what we have been saying is that we are reinvesting all our margins and profits into our new set of technologies. And the company has been, you know, constantly increasing its R&D spend to make sure that we are building new products. And since the last two years, if you're tracking our company, you will find that we have introduced products like Zero Trust Network Access, Extended Detection and Response, you know, data privacy solutions. And so as a result of all of this, we have diversified our portfolio in the enterprise security spend. And all of that investment, we have been actually getting through the profits generated by the company from their core technologies and core products.
So that is a conscious call that we have taken in the last three, four years, to make sure that we are able to create a diversified and a sustainable growth business for the future. Pankaj, in addition to this, Ankit here. So in addition to this, we have seen some headwinds in our consumer business, because of which our revenues were down, especially in the consumer side of things, and hence, A, there were reduction in revenue, and B, we were investing into new technology, which Vishal was investing in the enterprise side of things. So these two things lead to reduction in EBITDA, EBITDA percentage.
How long will we take to regain our past legacy?
See, Pankaj, we don't. As I said, again, we don't give guidance in terms of how long it will take. All we can say is that we are focusing on consistent, predictable, profitable growth. And that has been our endeavor. Of course, we are also, you know, readying the company for the future scale and growth. In past, we have talked about how these investments have generated increased serviceable operatable markets for us. And we are constantly focused on seeing how we can, not just looking at from a product point of view, but also looking at a new set of customers. So we are, we have been traditionally a micro and SMB player, and we are now getting into mid-market and the lower end of large enterprises.
And for that, we are doing a significant pivot, not just in terms of our products, but also in terms of our sales organization. And that is something which is work in progress. It takes. You know, if you look at the history of all the cybersecurity companies in the world, you know, it takes a time and effort to really start seeing how, you know, that growth happens. And that's really the journey that we are on right now.
Yeah, agreed. I take your point, but I just wanted to know, at least, can you please guide the roadmap for monetization of the products which you have developed in last two years?
Yeah, there is a clear path. There is a clear path for monetization. If I segment our products into different categories, the mature and core products are already giving us a very significantly higher return, versus the ones which are just got introduced, which are having a breakeven path, and the ones which are currently in development, so we do have a detailed plan for and a P&L for each of the product segments that we have. We don't right now give guidance publicly in terms of how each of those plans are defined, but yeah, of course, you know, we do have a detailed plan in terms of and a commitment to our board, as well as founders, on how we are going to breakeven each of these categories.
At least can you guide, out of the 300 odd crores of top line, how much was contributed by the mature products along with the EBITDA?
Yeah, yeah. I mean, I can give you the EBITDA straight for that. Pankaj, let me give you. See, something which we have mentioned in past also, is that our core technologies between consumer and enterprise together, roughly is calculating between 85%-90% of our revenues right now. So the new products that we have just introduced in the market in the last one and a half years, have started generating 10%-15% of our revenues.
But they are eating away almost all of the profits, which has been generated by the old products, right?
So the way I would put it is that that is how the investment cycle is for any new incubation and any new product. So we don't see them as eating away the profits. We see them as investment. We capitalize, you know, we don't capitalize. We basically expense out all our investments in the same year's books. So that's how we have been actually. That's been our strategy for innovation, as well as adding new products in the market.
At least can you help me, at global level, the companies of, the companies which are your peers, how long did they take to regain their profitability after launch of any new product? If you can help me with that. Or with your own experience, means earlier, whenever you launched a product, how long did it take to gain currency and, become profitable or breakeven?
Yeah. So I mean, I can give you a broad brush on this, Pankaj, and you can do your research afterwards. The top cybersecurity product companies in the world which are doing well right now would have taken anything between fifteen to ten to fifteen years to breakeven. And there are some which are yet to breakeven, right? In spite of that. That is the general trend that we have seen for companies to breakeven globally. So we should see our journey starting around four or five years back when we talk about a new set of investments that we are doing in enterprise security.
So we are already five years past that phase, right?
Around four, five years, yes.
Okay. And how many of our products are-
... I request you to come back for a follow-up question.
Sure, sure.
Thank you. The next question is from the line of Darshil Zaveri from Crown Capital. Please go ahead.
Hi, good evening, sir. Thank you so much for taking my question. Some of my questions have already been answered. So sir, just wanted to know, like, on a ballpark, so basic R&D spend, we are planning to do, like, in the current year and going forward, like, it's a sizable chunk of our expense. Hello?
Yeah. Thank you, Darshil, for your question. See, I think we are doing two things when it comes to our R&D spend, okay? We announced in the previous two quarters that we had got a board approval to start investment in our Horizon 3 products, and that work has already started. The good thing for us is that, you know, because some of our core technologies are already stable, we can, you know, have some level of flexibility of using some of our R&D talent into these new technologies. The second thing that we do is to look at all avenues and opportunities to optimize and, you know, improve our return on investment on R&D expenses.
And the third thing is, you know, the incremental additional talent which is required or specialized skill, is where we augment and hire from the market. But, broadly, you know, the core of our R&D team is already there in place. What we are doing is making sure that we augment it, we, you know, do tactical investments which are required to have those skills. And so, we feel ourselves are very, in a very comfortable space in terms of managing the cost, related to R&D and control them, vis-a-vis our, aspirations for all the new, products that we are developing. So that's really how we are looking at it.
So we don't expect our R&D cost to go and significantly grow, but they will maintain at the rate they are and maybe incrementally will add you know the skills which are required for us.
Oh, okay. Fair enough, sir. So I'm just, we are now talking about like, you know, we've, you know, launched our new products and, you know, some more products we are into, you know, like, development phase. So just wanted to know, like, a typical cycle, you said maybe it takes ten years to break even, but, like, what is, like, the full life cycle? Like, how much time does it go to develop it? And, like, and is there a, you know, possibility that we've been developing something for some time, but then the market doesn't accept it, or, you know, like, it's now redundant or something like that? So, you know, what could you just, you know, just brief us a bit about your thoughts about how you mitigate those risks, that it's not just too much gestation period and just making the product, right?
Yeah, I mean, first of all, I wanted to say that we are the only full stack cybersecurity company from India, okay? And, and so a lot of the work that we are doing is very well tried and tested, in the sense that when we talk about zero trust network access, when we talk about data privacy, when we talk about mobile security, we talk about, you know, extended detection and response solutions. All of these are well-defined solutions, which are well established in the global market, but obviously has a potential from Indian context, right?
And so you can never go wrong, you know, once we know exactly how these technologies are gonna pan out, as far as India is concerned, and even globally in future, once we start adding more, more innovation and scale, to these products. So that's really what goes into our planning. And, you know, in the consumer space also, we've been very, very strong, and we have lot of IP and, you know, a lot of research that we have done over a period of years. So, you know, we have the largest malware lab in the country. And, and so we really deeply understand what's happening.
To pivot to a technology like anti-fraud is something which is a natural adjacency for a company like us, to really create a new set of solutions, to address a new, completely new market.
Oh, okay. Fair enough. So, yeah, that's it from my side. So all the best. Thank you.
Thank you. The next question is from Grishma Shah from Envision Capital. Please go ahead.
Good evening to the management team. If you could highlight or, you know, share more about what's happening on the consumer side of the business, you know, if you could elaborate a little bit, that would be helpful.
Yeah. Thank you, Grishma. So, basically, you know, there are some headwinds in the consumer business and antivirus business in terms of, you know, the demand and, you know, how the overall adoption of antivirus, consumer antivirus has been. Within that headwind, you know, as you have seen our performance, we have been, you know, one of the top performers in the market. And we do occupy a market leader position, and our products are also valued at a premium for the value, kind of value that we provide to our customers.
Mm-hmm.
So we will, we are, you know, you know, ensuring that we will show a respectable growth while, you know, the overall market will be growing. Okay? Now, while we do that, we are extremely happy that now we have launched AntiFraud.ai, which will give a boost to our consumer business and add one more category in our business mix, you know, to look at and then drive the growth, right? So that is how we are looking at the consumer market.
Okay. So even in quarter two, this market has de-grown and we've like, kind of, held on. Is that a fair assumption?
Yes.
Okay, and you know, therefore, the gross margins or overall operating margins in this business segment would have also been slightly under pressure?
I think we are doing okay. We are still holding on to our prices and, you know, because this is a well-oiled kind of a business model for us, we've been doing it for last decade. It's a very mature business model and, therefore, very stable when it comes to margins and, you know, how we drive it. Of course, like Ankit has mentioned in his opening initial remarks-
Mm-hmm.
We do have some kind of work to do in the coming quarters to improve on our collections. But otherwise, you know, we are doing okay as far as margins are concerned.
Okay. Fine. Thank you and good day.
Thank you. The next question is from the line of Mihir Manohar from Carnelian Asset Management. Please go ahead. Mr. Mihir, your line has been unmuted. Please go ahead with your question.
Hello. Yeah, hi, ma'am? Am I audible?
Yes, sir.
Yeah, sure. So, I wanted to understand on the enterprise part of the business. 17% of the enterprise business was on cloud in FY 2021, and now 28% is on cloud. So how does it change the revenue recognition? Wanted to understand that. And second question was on the working capital. I mean, how should one see the working capital normalization happening?
So I'll ask Ankit to answer the second part, but let me answer the first part of your question, Mihir. The revenue recognition is based on how we agree on the EULA or our agreement with the customers, and how we are selling the licenses of our product. So it is by product and not by cloud consumption. Okay? So I think that's the answer to your first question. You want to answer the second part?
Yeah. So just to add on the first part, when we do the revenue recognition, it's done by... So we have done product by product analysis as per IAS 15, International Accounting Standard, Ind AS, whatever it is, we have followed that policy. So Mihir, can you repeat your second part regarding working capital? Mihir?
Hello, yeah, I'm audible.
Yeah. I can hear you now.
There is some issue with my end.
So basically, how should one see the normalization of working capital by the end of the year? So, difficult to answer this question at this point of time, but as I said in my opening remarks as well, that we are currently focused on getting that collections back to business. So there is a lot of efforts which have been made, especially in our consumer segment, where we are, where we'll be focusing on the collections in next six months.
Sure. Yeah, that's it from my side. Thank you.
Thank you.
Thank you. The next question is from the line of Manan Bhandari from Wallfort PMS. Please go ahead.
Thank you so much for this opportunity. I have two questions. First question is on so out of the 4,000 crore market that we have given in the PPT, around FY 2026-2027, the whole total addressable market, how much are we planning to, you know, cater to?
Manan, actually, when we talk about serviceable addressable market, that is the market available for us. That is what we'll focus on. The entire market is something, that number is what is the available, addressable for us.
We would be the only person to address this, or we have, competition also in this market?
No, we will have competition in this market, and we will have other players also in the market.
But we will be the largest player, right?
No, no. We will. This is the market available for us. We will aspire to take a percentage of that market, and we'll keep on growing on that percentage.
Okay.
But right now, we are not the market leader. We do not. We expect to be a market leader by 2027 in that market, at that point of time.
Okay, so the percentage that you mentioned, how much can we take?
We don't disclose that right now, Manan.
Okay.
So, but I just wanted to give you some additional nuances to my answer, okay? So we are the market leader in one segment, which is our consumer AV, okay? And so consumer AV India, we are the market leader. We have 33%-35% of the market share. So that is number one. And the second thing which I also wanted to clarify is, the anti-fraud launch that we have done, also, we are the first one to launch it, right? So we don't have any competition in that space right now.
All right. Understood. Understood. And the second question that I have is, the new products, like the antivirus, sorry, AntiFraud.AI that we have launched and some others also which we might launch in the future. Will these new products will do better than our old products, or I mean, it should do better? So which is I'm asking, will these products do better than our old products?
Yeah. So, Manan, the way to look at it is that we are diversifying when we introduce new products, and so then we, we will have a set of our core products and technologies right now, right? And when we diversify, these new products will start gaining momentum for us and revenue share. And so over a period of time, we'll have more diversification happening. But the core, you know, remains core for a period of time until that mix changes. So, so like I said, you know, if you look at the antivirus, consumer antivirus and enterprise antivirus together form our core right now, which is around 85%. But that used to be only consumer AV 100% around seven years back. So a lot of things have changed over the period of years to have a better product mix into our business model.
By introducing these new products, we are hoping and we are aspiring to have a similar diversification happening in the coming years for us.
Okay. So these new products that we are having, do you think they will, let's say, like, five, 10, whatever years, you know, ahead in life, these might also take, like, a sizable chunk. So like right now we are at 80%, and the new products are 15%, so this might go to 30, 40, 50.
Yeah. Actually, all our products, we have full conviction and confidence, and only then we have launched it. So we have full confidence that they will add a good amount of revenue in future for us. So the way you are articulating is how we are looking at it in future, Manan.
That's right. That's right. Yeah, that, that's it. Thank you so much.
Thank you. The next question is from the line of Debashish Mazumdar from Swan Capital. Please go ahead.
Good evening, and thank you for taking my question. I have two questions. First one is on your new product which you have launched. First of all, congratulations on the new product launch and starting to create a new category. Just wanted to get some sense that what I have understood by discussing you for the last six, eight months, that you are trying to pivot towards more into a B2B business. Why launching a product in a B2C business and investing there? So that is first part. The second part is, our historical experience suggested that it is very difficult to monetize any mobile-limited product in India, so why to get into that business again?
So that is on the new product category, and the second one is on B2B business. This, I mean, if I see the numbers, it is very difficult, getting very, very difficult for us to predict, that how the trajectory would be. So I'm not asking for any guidance or anything, but, can we get, some amount of, you know, lead indicators, whether it is number of clients signed or number of licenses getting sold, so that, we can build some amount of predictability in our B2B business? So these are the two questions I have.
Yeah. So, you know, me actually coming from the Indian banking industry, where I worked for two decades, I've actually seen the consumer fraud in India and also overall growing significantly, and it has been unabating, right? So it is constantly creating a bigger challenge for the ecosystem, right? And there have been humongous amount of investments and money being spent on B2B2C products for anti-fraud so far. Okay? But because it's B2B2C, it becomes a big challenge for adoption for the common citizen, because they, they work with different banks. One consumer may be working with various banks, so the challenge, you know, it, it doesn't pick up. Now, when it comes to, you know, when... And so there was clearly an opportunity for us to look at a direct B2C solution.
And also, it is a completely new category, but it builds on the core of Quick Heal as a company, right? For its commitment towards fighting this problem. See, because you know, when you look at Quick Heal, you should look at Quick Heal not as an antivirus company. We are in the business of protecting end consumers. Now, if that is our mission, then we need to recognize that when, you know, the issues have moved from antivirus to fraud, it is our responsibility to do something about that. And we want to be known as a company which is, you know, safeguarding our consumers... And so it was a very natural and logical step for us, right?
That is number one, and number two, because a lot of the things that we have leveraged, our existing power of understanding, the risks and threats which are happening, you know, the use of AI, and so, you know, we have used and viewed a lot of these things and added some additional features for charity, which we believe can be pathbreaking for the Indian consumer, and so then it was a no-brainer, Debashish, you know, to go into it and you know, it looked like a very important aspect and a mission to solve, and hence commitment to AntiFraud.AI.
And I think, you know, in the last previous quarters also, we have always hinted, although not mentioned it as much, but we always hinted at, you know, working on these issues, these areas, and coming out with announcements in near future. As far as predict-
Just to add, Vishal. So Debashish, we have this experience in B2C business. We have a three decades experience, so we want to capitalize that as well, and we are confident that by doing this, we are doing the right thing. Sorry, Vishal, you can continue.
So, sorry, just to harp on the same point. So do you think that in Indian customer there is a change in behavior? Because in the past, we have seen several times that, despite trying to create awareness in the client's mind, normally B2C clients doesn't want to pay for this kind of product, especially when it comes to mobile. So do you see any change in behavior of the customers?
See, Debashish, you know, what we are thinking is, we don't want to sort of stereotype an Indian customer, because, you know, the same Indian customer is actually adopting a lot of global apps, right? So why can't they do it? And if, for example, a Blinkit can be adopted as an app in India, which is mobile first for some other business model, the same model can be adopted for securing your device and foolproofing you from a fraud point of view, right? So I think, you know, we are... we know that it is a challenging business model, but we are going with an open mind and embracing the challenge.
But because of our understanding of how this pans out in the computer business, we will be able to navigate these challenges and, you know, ensure success. So I think your point is well taken, but we are, you know, we are, you know, looking at how do we cover all our bases to ensure our success, yeah. And so far, the feedback has been very good, received from customers as well as our partners.
Sure, sure, sure. Just one observation, when you try to download this through App Store, it is showing a four-year-old product. So I'm not very sure that there is any mistake there. I'm just checking. So if you can check that, it is showing a four-year-plus old product in the App Store.
Sure, sure. We'll have a look. Maybe it's a different app that is popping up for you, but we will look at it, Debashish.
Sure.
We'll circle back with you on that.
Sure. Thank you so much. And the second question on the predictability, if you can get some kind of direction towards the predictability of the B2B business, that will be very helpful.
See, we have already been sharing our business mix. We've this time also shared, so when we talk about lead indicators and some KPIs, we are constantly seeing how we can start disclosing more KPIs. So this time around, we have shown how our enterprise business is changing from a cloud versus on-prem, so that's a very important KPI to track, which will show the maturity of our business and modernization of our business. And we will continue to add more and more features as we go along, and your point is well taken, yeah.
Sure, sure. Thank you so much, and wish you best of luck.
Thank you. The next question is from the line of Sanjay Shah from KSA Shares & Securities. Please go ahead.
Can you just talk a little bit more about the enterprise market and how it is going to be, because a large part of the focus, and I think we are focused on the new product in the B2C. So just, your overall perspective on the experience, the transition, of course, again, the numbers, and how do you see that panning out over the next month to a year?
Thanks, Sanjay. Sanjay, I think, you know, one of the things we are extremely happy about is that we have now, you know, started to work on the new set of solutions like, you know, SWG, which is your Secure Web Gateway or your Cloud Security Access Broker. We're also developing a malware analysis platform, a threat intel platform, and all of these are back of the deep research that we do and the deep amount of technology that we have created through our Seqrite Labs. So, extremely bullish and happy about how we are progressing as far as these new solutions are concerned. We are focusing on how to pivot from a sales motion point of view to the mid-market segment.
And that is, like I said, a work in progress and we are, you know, adding leaders and mid-management team members in our sales organization to bolster our team and, you know, drive that. So overall, if you look at, you know, there's a huge potential. If you see the recent events and incidents unfolding globally as well as in India, you'll find that humongous amount of cybersecurity breaches and incidents which are happening. So the awareness level of enterprises is only growing. The expectation from the Government of India through regulations or bankers, even SEBI has come out with a very detailed cybersecurity guideline, guidance and policy framework, which has been launched recently, which is very, very comprehensive.
So all of this is heightening the need and the requirement for cybersecurity to be adopted in large enterprises and organizations. So I think clearly we see a huge potential for us in because of these different trends that I just talked about, Sanjay.
That's wonderful. Thank you so much. And then would you mind, Vishal, also talking a little bit more about the data privacy and how that's evolving?
Yeah, I think, you know, very interesting is that obviously now India is at the cusp of launching, the enforcement of, the data privacy as far as India is concerned. And, you know, you know that the law and act has already been passed in the parliament. We are now just waiting for the final enforcement guidance and guidelines, from Government of India. We, in one of these calls, investor calls, we had mentioned that our anticipation was that, this will be announced in Q3, which is this quarter. And we, we can start seeing, a positive impact of that in terms of our pipeline and our closures in Q4 and Q1 onwards from next year.
I think, generally speaking, Sanjay, what we have seen with the experience of GDPR in Europe and California Data Protection Act in US, that generally whenever such things come in, not just the data privacy, but also the overall cybersecurity investments grow around 5%-7% in the country where the act gets launched. We expect that same thing will happen as far as India is concerned, and it is going to be a very positive move for India and the digital adoption of India in the country, as well as how people are seeing India as a country.
Thank you. This is very exciting. Thank you. Thank you for the comments. Thank you.
Thank you. Ladies and gentlemen, we'll take this as the last question. I now hand the conference over to the management for closing comments.
So, before that, I just want to clarify, Debashish, if you are here, four plus is the AI recommendation and not age of the heir. So we thought just to clarify right away.
Okay, I think you can ask the next question.
This was the last question.
Oh, okay. All right. All right, thank you so much, everyone, for a very engaging conversation and asking a variety of different questions. I hope you found this useful. Thank you so much for joining today, and, look forward for the next quarter call as well. Thank you.
Thank you, everyone. Good day.
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. Thank you.