KFintech Delivers Strong

Bangalore,25th October 2023 : KFin Technologies Limited announced its financial results for the quarter and period ended 30th September 2023 today.

Financial Highlights – Q2FY24

  • · Revenue from operations stood at ₹ 2,089.7 million, up 16.0% y-o-y
  • · Total income stood at ₹ 2,152.7 million, up 17.9% y-o-y
  • · EBITDA stood at ₹ 936.7 million, up 31.8% y-o-y, EBITDA margin at 44.8% in Q2FY24 vs. 39.4% in Q2FY23
  • · PAT at ₹ 613.8 million, up 28.1% y-o-y, PAT margin at 29.4% in Q2FY24 vs. 26.6% in Q2FY23
  • · Diluted EPS stood at ₹ 3.58, up 26.2% y-o-y

Financial Highlights – H1FY24

  • · Revenue from operations stood at ₹ 3,904.8 million, up 12.0% y-o-y
  • · Total income stood at ₹ 4,020.9 million, up 13.7% y-o-y
  • · EBITDA stood at ₹ 1,640.9 million, up 22.9% y-o-y, EBITDA margin at 42.0% in H1FY24 vs. 38.3% in H1FY23
  • · PAT at ₹ 1,047.5 million, up 22.7% y-o-y, PAT margin at 26.8% in H1FY24 vs. 24.5% in H1FY23
  • · Diluted EPS stood at ₹ 6.11, up 21.0% y-o-y
  • · Cash and cash equivalents at ₹ 3,742.3 million as on September 30, 2023
  • · Non-domestic mutual fund revenue share in overall revenue is at 31% in H1FY24

Business Highlights – Q2FY24

  • · Overall AAUM1 growth at 20.5% y-o-y vs. 20.3% for the industry, market share1 at 31.5%
  • · Equity AAUM1 growth at 20.2% y-o-y vs. 24.5% for the industry, market share1 at 34.0%
  • · Added 172 new corporate clients and four million investor folios under issuer solutions; Won RTA mandate from State Bank of India Limited; Market share2 in NSE500 companies at 47.3%
  • · Revenue from younger and faster growing international and other investor solutions businesses grew at
  • · 48.3% y-o-y, aided by growth in the international, alternate investment funds and pension businesses
  • · Number of international clients3 increased to 50; First client in Singapore went live during the quarter
  • · Executed maiden fund administration agreement with Bank of Ayudhya Public Company Limited, fifth largest bank in Thailand; Won the contract4 for system application and managed services for IUTA distribution system from an existing client in Malaysia
  • · No of alternate funds3 at 434; Market share3 at 37.2%; Won first general insurance client for fund
  • · administration under Hexagram; Won the fund administration contract from LIC Pension Fund4; Launched front office order management system for portfolio managers (PMS) during the quarter
  • · NPS subscriber base3 grew to 1.04 million, up by 24.0% y-o-y vs. 11.4% y-o-y growth for the industry

Commenting on the company’s performance, Sreekanth Nadella, Managing Director and CEO, KFin Technologies Limited said, “Our focus on creating a global fund administration business at scale is helping us to grow at a faster pace and build solutions of choice for the global asset managers aided by nimble technology deep-stack, strong delivery model and well-planned execution strategies. Our investment in next generation technology and talent in the last four years is facilitating new client wins and process efficiencies across business segments which continue to aid faster growth in sales, expansion in margins and profitability. We are committed and excited to pursue our global fund administration plan by targeting the growth in global alternative asset management industry. Our younger and faster-growing business segments will continue to outperform the growth in traditional domestic investor solutions and issuer solutions businesses leveraging our superior product-suite and strong business development efforts.”

KEY FIGURES      ₹ Million

 Q2 FY24Q1 FY24Q2 FY23H1 FY24H1 FY23FY23
EBITDA margin %44.8%38.8%39.4%42.0%38.3%41.4%
Profit After Tax (PAT)613.8433.8479.21,047.5853.51,957.4
PAT margin %29.4%23.9%26.6%26.8%24.5%27.2%
Diluted EPS (₹)*3.582.512.836.115.0511.52