Kfin Technologies’ PAT At Rs668.3 Mn, Up 25%

KFin Technologies’ strong performance across segments leading to robust revenue growth and margin expansion

Sreekanth Nadella, Managing Director and CEO, KFin Technologies

FinTech BizNews Service   

Mumbai, January 26, 2024: KFin Technologies Limited has announced its financial results for the quarter and nine months ended 31st December 2023.

Financial Highlights – Q3FY24

·         Revenue from operations stood at Rs 2,187.2 million, up 16.3% y-o-y

·         Revenue from international and other investor solutions businesses grew at 28.2% y-o-y

·         EBITDA stood at Rs 979.0 million, up 21.3% y-o-y, EBITDA margin at 44.8% in Q3FY24 vs. 42.9% in Q3FY23

·         PAT at Rs 668.3 million, up 25.2% y-o-y, PAT margin at 30.6% in Q3FY24 vs. 28.4% in Q3FY23

·         Diluted EPS stood at Rs 3.88, up 23.1% y-o-y

Financial Highlights – 9MFY24

·         Revenue from operations stood at Rs 6,091.9 million, up 13.5% y-o-y

·         Revenue from international and other investor solutions businesses grew at 30.3% y-o-y

·         EBITDA stood at Rs 2,619.9 million, up 22.3% y-o-y, EBITDA margin at 43.0% in 9MFY24 vs. 39.9% in 9MFY23

·         PAT at Rs 1,715.8 million, up 23.7% y-o-y, PAT margin at 28.2% in 9MFY24 vs. 25.8% in 9MFY23

·         Diluted EPS stood at Rs 10.00, up 21.9% y-o-y

·         Cash and cash equivalents at Rs 3,134.3 million as on December 31, 2023

·         Non-domestic mutual fund revenue share in overall revenue is at 31% in 9MFY24

Business Highlights – Q3FY24

·         Overall AAUM1 growth at 22.7% y-o-y vs. 22.2% for the industry, market share1 at 31.8%

·         Equity AAUM1 growth at 24.2% y-o-y vs. 29.8% for the industry, market share1 at 33.5%

·         Added 1702 new corporate clients and five million2 investor folios under issuer solutions; Won RTA mandate from Usha Martin Limited; Market share3 in NSE500 companies at 46.5%;

·         Number of international clients increased to 54 of the two LOIs received from Malaysian clients for RTA and FA in Oct23, contract execution completed with one and received LOA from the other; Won an RTA contract in Middle East from an existing client; Won a new deal5 in Malaysia for RTA and FA managed services

·         No of alternate funds at 4554; Market share4 at 36.4%; AAUM grew 54.4% y-o-y to Rs 910 billion4; Launched

·         XAlt, an integrated fund administration platform for the global alternate asset managers

·         NPS subscriber base4 grew to 1.10 million, up by 25.3% y-o-y vs. 11.9% y-o-y growth for the industry

Commenting on the company’s performance, Sreekanth Nadella, Managing Director and CEO, KFin Technologies Limited said, “We are excited to deliver yet another quarter of strong performance in terms of growth as well as profitability driven by strong focus on execution across our diversified business segments. We have a strong pipeline of deals in the international markets which we believe will propel our overall growth. KFintech is uniquely positioned to offer full-suite of fund administration services to the global asset managers using its state-of-the art technology stack and innovative value-added solutions. With the launch of the industry first platform XAlt, KFintech aims to set new standards in the global fund administration space to offer fully automated system to global alternate asset managers that aligns with the evolving requirements. India’s alternate asset management industry is at an inflection point and with global industry too expected to grow at a rapid pace, KFintech is well poised to seize the opportunity leveraging its product suite and sales efforts.”

KEY FIGURES                                                                                                                        Rs Million

About KFin Technologies Limited

KFin Technologies Limited (“KFintech”) is a leading technology-driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem, including asset managers and corporate issuers across asset classes in India. KFintech provides several investor solutions, including transaction origination and processing for mutual funds and private retirement schemes to asset managers in Malaysia, the Philippines, Singapore, Hong Kong, and Canada. In India, KFintech is the largest investor solutions provider to Indian mutual funds, based on the number of AMCs serviced as of September 30th, 2023, and the largest issuer solutions provider based on the number of clients serviced as of September 30, 2023. KFintech is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds, wealth managers, and pension, as well as corporate issuers. It is also one of the three operating central record-keeping agencies for the National Pension System in India. KFintech is listed on the National Stock Exchange of India Limited and BSE Limited. The promoter of KFintech is General Atlantic Singapore Fund Pte. Ltd (“GASF”), a leading global private equity investor.