April 13, 2024

Resilient Performance by KFintech in a Volatile Market

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Hyderabad, May 10, 2023: KFin Technologies Limited announced its financial results for the quarter and financial year ended 31st March 2023 today.

Financial Highlights – FY23

  • Revenue from operations stood at ₹ 7,200.3 million, growth of 12.6% y-o-y
  • PAT at ₹ 1,957.4 million, up 31.8% y-o-y, PAT margin at 27.2%
  • EBITDA stood at ₹ 2,980.4 million, up 3.5% y-o-y, EBITDA margin at 41.4%
  • Diluted EPS stood at ₹ 11.52, up 23.1% y-o-y
  • Cash and cash equivalents at ₹ 3,090.9 million as on Mar 31, 2023
  • Non-domestic mutual fund revenue share in overall revenue improved to 29% in FY23 vs. 26% in FY22

Financial Highlights – Q4FY23

  • Revenue from operations stood at ₹ 1,831.3 million, up 1.3% y-o-y and down by 2.7% q-o-q
  • EBITDA stood at ₹ 838.4 million, up 0.1% y-o-y and 3.9% q-o-q, EBITDA margin at 45.8%
  • PAT at ₹ 570.2 million, up 12.1% y-o-y and 6.8% q-o-q, PAT margin at 31.1%
  • Diluted EPS stood at ₹ 3.32, up 3.6% y-o-y and 5.2% q-o-q

Business Highlights

  • Entered account aggregator business by acquiring 25.63% stake1 in India’s first and leading account aggregator, OneMoney
  • Acquired 100% stake in WebileApps to enhance and accelerate KFintech’s digital transformation offerings
  • Overall AAUM2 growth at 7.0% y-o-y vs. 5.5% for the industry, market share2 at 31.6%
  • Equity AAUM2 growth at 8.7% y-o-y vs. 10.5% for the industry, market share2 at 34.5%
  • Issuer solutions business crossed major milestone of ₹100 crore revenue in FY23
  • No of alternate funds3 at 411, added 143 new funds during FY23, market share3 at 37.4%
  • Launched digital onboarding platform during Q4FY23 for PWM/PMS clients
  • Won first fund administration deal in Singapore4
  • NPS subscriber base grew by 28.0% y-o-y to 0.96 million3 13.6% y-o-y growth for the industry

Commenting on the company’s performance, Sreekanth Nadella, Managing Director and CEO, KFin Technologies Limited said, “Financial year 2022-23 has been a landmark year in KFintech’s journey, as we successfully listed the Company on the Indian stock exchanges.

We have hastened the implementation of our strategy to diversify and broad base growth by investing in our younger and faster-growing businesses across geographies. We successfully integrated Hexagram’s fund administration capabilities to win new clients in India and abroad to expedite our aspirations to be globally relevant. We invested in two new businesses – OneMoney and WebileApps, to make major strides in the evolving ecosystem of account aggregator industry and to consolidate our digital prowess to add differentiating value to our clients, partners, and shareholders.

Our commitment to talent engagement coupled with frugal and effective engineering practices have helped us close the fiscal year characterized by volatile markets and inflationary trends on a satisfactory note.”

“We remain focused to enhance our leadership position by investing in our core strength of technology-led innovation and execution capabilities besides pursuing synergistic inorganic opportunities.” he added.

KEY FIGURE ₹ Million

 

  Q4 FY23 Q3 FY23 Q4 FY22 FY23 FY22
Revenues 1,831.3 1,881.3 1,808.5 7,200.3 6,395.1
EBITDA 838.3 807.0 837.4 2,980.4 2,878.5
EBITDA margin % 45.8% 42.9% 46.3% 41.4% 45.0%
Profit After Tax 570.2 533.8 508.6 1,957.4 1,485.5
Profit after tax % 31.1% 28.4% 28.1% 27.2% 23.2%
Diluted EPS (₹)* 3.32 3.15 3.21 11.52 9.36

*Not annualized

(1) KFintech can acquire up to 75.01%, subject to customary closing and regulatory approvals; (2) Last quarter average; (3) As on March 31, 2023; (4) During April 2023