Last Updated on January 30, 2024 by ethinos
Table of Content
Quarterly Performance Highlights – KFin Technologies Limited
Financial Highlights – Q3 FY24:
1. Revenue from operations reached ₹2,187.2 million, demonstrating a robust YoY growth of 16.3%.
2. Notably, revenue from international and other investor solutions businesses exhibited a substantial YoY increase of 28.2%.
3. EBITDA stood at ₹979.0 million, reflecting a noteworthy YoY growth of 21.3%, with an improved EBITDA margin of 44.8% in Q3 FY24 compared to 42.9% in Q3 FY23.
4. Profit After Tax (PAT) reached ₹668.3 million, showcasing a significant YoY increase of 25.2%, with an enhanced PAT margin of 30.6% in Q3 FY24 compared to 28.4% in Q3 FY23.
5. Diluted Earnings Per Share (EPS) stood at ₹3.88, marking a YoY increase of 23.1%.
Additional Read: Q3 Results Dashboard
Financial Highlights – 9M FY24:
1. Revenue from operations for the nine months ending FY24 reached ₹6,091.9 million, with a robust YoY growth of 13.5%.
2. Similar to Q3, revenue from international and other investor solutions businesses grew significantly by 30.3% YoY.
3. EBITDA for 9M FY24 stood at ₹2,619.9 million, reflecting a substantial YoY growth of 22.3%, with an improved EBITDA margin of 43.0% compared to 39.9% in 9M FY23.
4. PAT for 9M FY24 reached ₹1,715.8 million, marking a significant YoY increase of 23.7%, with an enhanced PAT margin of 28.2% compared to 25.8% in 9M FY23.
5. Diluted EPS for 9M FY24 stood at ₹10.00, showing a YoY increase of 21.9%.
Business and Market Highlights – Q3 FY24:
1. Overall Assets Under Management (AAUM) witnessed a commendable YoY growth of 22.7%, surpassing the industry’s growth rate of 22.2%, with a market share of 31.8%.
2. Equity AAUM exhibited a robust YoY growth of 24.2%, outperforming the industry with a market share of 33.5%.
3. Corporate client base expanded by 170, and five million investor folios were added under issuer solutions.
4. International client base increased to 544.
5. The company successfully executed contracts with Malaysian clients for RTA and FA, and additionally won contracts in the Middle East and Malaysia for RTA and FA managed services.
6. Alternate funds reached 455, with a market share of 36.4%, and AAUM growing by 54.4% YoY to ₹910 billion.
7. The NPS subscriber base grew to 1.10 million, reflecting a notable YoY increase of 25.3%.
Management Commentary:
Sreekanth Nadella, Managing Director and CEO of KFin Technologies Limited, expressed excitement over the strong quarterly performance, emphasising growth and profitability driven by focused execution across diversified business segments. He highlighted the company’s robust pipeline of international deals and its unique position to provide a full suite of fund administration services globally. With the launch of the industry-first platform XAlt, KFin Technologies aims to set new standards in global fund administration, leveraging technology and innovative solutions. Nadella sees significant opportunities in India’s alternate asset management industry and anticipates global growth, positioning KFin Technologies to capitalise on these opportunities through its product suite and sales efforts.
₹ Million
| KEY FIGURES | Q3 FY24 | Q2 FY24 | Q3 FY23 | 9M FY24 | 9M FY23 | FY23 |
| Revenue | 2,187.2 | 2,089.7 | 1,881.3 | 6,091.9 | 5,368.9 | 7,200.3 |
| EBITDA | 979.0 | 936.7 | 807.0 | 2,619.9 | 2,142.0 | 2,980.4 |
| EBITDA margin % | 44.8% | 44.8% | 42.9% | 43.0% | 39.9% | 41.4% |
| Profit After Tax (PAT) | 668.3 | 613.8 | 533.8 | 1,715.8 | 1,387.2 | 1,957.4 |
| PAT margin % | 30.6% | 29.4% | 28.4% | 28.2% | 25.8% | 27.2% |
| Diluted EPS (₹)* | 3.88 | 3.58 | 3.15 | 10.00 | 8.20 | 11.52 |
*Not annualised
(1) Last quarter average; (2) During the quarter; (3) As on December 31, 2023, based on market capitalization; (4) As on December 31, 2023; (5) In January 2024
Additional Check: KFin Technologies Share Price
About KFin Technologies Limited
KFin Technologies Limited, known as “KFintech,” stands as a prominent technology-driven financial services platform that offers comprehensive solutions to the capital markets ecosystem. Catering to asset managers and corporate issuers across diverse asset classes in India, KFintech extends a wide array of services to global asset managers in countries such as Malaysia, Philippines, Singapore, Hong Kong, Thailand, and Canada. The platform specialises in delivering holistic investor solutions, encompassing transfer agency, fund administration, fund accounting, data analytics, digital onboarding, and transaction origination and processing for alternative investments, mutual funds, unit trusts, insurance investments, and private retirement schemes.
In India, KFintech holds a leading position as the largest investor solutions provider for Indian mutual funds, based on the number of Asset Management Companies (AMCs) serviced as of December 31, 2023. Additionally, it holds the top spot as the largest issuer solutions provider, considering the number of clients serviced as of the same date. KFintech uniquely offers services to various asset managers, including mutual funds, alternative investment funds, wealth managers, pension funds, and corporate issuers. Moreover, it holds the distinction of being one of the three central record-keeping agencies for the National Pension System in India.
Listed on the National Stock Exchange of India Limited and BSE Limited, KFintech’s promotion is backed by General Atlantic Singapore Fund Pte Ltd (GASF), a renowned global private equity investor. The platform’s commitment to technological innovation and its extensive service offerings solidify its position as a key player in the financial services sector, both in India and internationally.
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Sources: https://www.bseindia.com/corporates/anndet_new.aspx?newsid=5b3d2e30-0604-4701-b831-c747fdcbabf2
