Kfin Technologies Limited · NSE:KFINTECH
Kfin Technologies — Q4 FY2024 Earnings Presentation
49 slides from Kfin Technologies's earnings presentation, Apr 29, 2024
Slide 1: Exchange cover letter
A April 29, 2024 CS&G/STX/JQ2024/10 1) National Stock Exchange of India Limited 2) BSE Limited Exchange Plaza, C-1, Block G, Phiroze Jeejeebhoy Towers, Bandra Kurla Complex, Bandra (E), Dalal Street, Mumbai – 400 051 Mumbai – 400 001 Scrip Symbol: KFINTECH Scrip Code: 543720 Sub. : Investor Presenta
Slide 2: Robust overall performance, propelled by growth across diversified businesses
ROBUST OVERALL PE RFORMANCE, PROPELLED BY GROWTH A CROSS DIVERSIFIED BUSINESSES AND MARGIN EXPANSION Mumbai, April 29, 2024: KFin Technologies Limited announced its financial results for the quarter and year ended 31st March 2024 today. Financial Highlights – Q4FY24 − Revenue from operations stood a
Slide 3: About KFin Technologies Limited
About KFin Technologies Limited (www.kfintech.com/; BSE: 543720; NSE: KFINTECH): 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 is
Slide 4: KFin Technologies Limited Q4 & FY23-24
KFin Technologies Limited Investor Presentation Q4 & FY23-24 (for the quarter & year ended March 31, 2024)
Slide 5: Safe Harbour Statement
Safe Harbour Statement This presentation may contain certain forward-looking statements concerning the Company’s future business prospects and business profitability, which are subject to a number of risks and uncertainties and the actual results could materially differ from those in such forward-lo
Slide 6: Today's Presenters
Today’s Presenters Venkata Satya Naga Sreekanth Nadella Vivek Narayan Mathur Amit Murarka Managing Director and Chief Financial Officer Head of Global Business Finance, Chief Executive Officer M&A, and Investor Relations 3 KFin Technologies Limited, Investor Presentation Q4 FY24
Slide 7: Agenda: Company Overview
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 8: KFintech: At a Glance
KFintech: At a Glance Scaled platform with strong track record of growth and leadership Investor Solutions – Domestic Mutual Funds Largest 252 out of 472 Won 154 out of 255 Over 259 Investor Solution provider to AMCs in India; ₹17.4 tn AAUM3 Last new AMCs launched in India New products launched Indi
Slide 9: Agenda: Key Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 10: Key Highlights
Key Highlights Robust overall performance, propelled by revenue and profitability growth across diversified businesses and margin expansion Q4FY24: Revenue growth at 25% y-o-y; EBITDA growth at 25% y-o-y and margins at 45.8%; PAT growth at 31% y-o-y and margins at 32.6% FY24: Revenue growth at 16% y
Slide 11: Agenda: Industry Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 12: India Performance: Mutual Fund and Other Asset Classes
India Performance Overall AAUM1 Equity AAUM 1 Monthly SIP inflows Folios Total Equity SIPs (₹ trillion) (₹ trillion) +48.2% y-o-y (₹ billion) (in million) +33.6% y-o-y +10.0% q-o-q +14.0% q-o-q 178 Mutual Fund2 192.7 30.1 123 98 54.1 20.3 84 18.4 91.8 67 38.4 40.5 32.1 13.3 37 27.1 11.2 Dec-23 Sep-2
Slide 13: Agenda: Business Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 14: Domestic Mutual Fund investor solutions
Domestic Mutual Fund investor solutions: Focus on mid-size, equity-oriented AMCs, providing significant sustainable advantage Overall AAUM 1 & market share2 AAUM1 Growth AAUM1 Market Share2 (₹ trillion) 30% 31% 32% 27% KFintech Industry Q4FY23 Q3FY24 Q4FY24 20. 0 35% 18. 0 16. 0 26% 30% 25% 14. 0 12
Slide 15: Issuer solutions - Maintaining the leadership position
Issuer solutions - Maintaining the leadership position No of corporate clients1 No of investor folios1 ▪ 208 clients added during Q4; 708 clients added during FY24 +13.2% y-o-y (in million) +13.0% y-o-y +3.5% q-o-q +4.8% q-o-q ▪ 6 million folios added during Q4; 14 million folios added during FY24 ▪
Slide 16: International investor solutions: Expanding global footprints
International investor solutions: Expanding global footprints Growing global footprint No of clients1 Solutions No of Contracts 57 RTA 43 41 Fund 27 Administration Canada (1) FY23 FY24 Middle East (1) Gift City (19) IndiaThailand Hong Kong (1) X new clients added Number of clients (1) • • Malaysia P
Slide 17: Other investor solutions: Younger & faster growing businesses
Other investor solutions: Younger & faster growing businesses No of Funds serviced by +34.8% y-o-y AAUM1 +60.6% y-o-y Alternates & Wealth KFintech1 +3.7% q-o-q (₹ billion) +8.5% q-o-q ▪ Total no of funds at 472, market share2 at 36.3% 987 ▪ Client wins include Barings Private Equity, Ikigai Asset Ma
Slide 18: Agenda: Financial Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 19: Financial Performance
Financial Performance Particulars Q4FY24 % Change FY24 % Change 24.7% y-o-y Revenue from Operations 2,283.4 8,375.3 16.3% y-o-y 4.4% q-o-q 24.8% y-o-y EBITDA 1,046.0 3,666.0 23.0% y-o-y 6.8% q-o-q 3 bps y-o-y EBITDA Margin (%) 45.8% 43.8% 238 bps y-o-y 105 bps q-o-q 30.6% y-o-y PAT 744.7 2,460.5 25.
Slide 20: Quarterly Financial Trend
Quarterly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 24.7% Y-o-Y 24.8% Y-o-Y 30.6% Y-o-Y 32.6% 45.8% 45.8% 31.1% 30.6% 2,283 44.8% 44.8% 29.4% 2,187 2,090 38.8% 745 1,831 1,815 23.9% 668 614 570 1,046 434 937 979 838 704 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q4FY24 Q4FY23 Q1FY24 Q2FY
Slide 21: Yearly Financial Trend
Yearly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 16.3 Y-o-Y 23.0 Y-o-Y 25.7% Y-o-Y 44.1% 45.0% 43.8% 8,375 41.4% 29.4% 23.2% 27.2% 7,200 35.3% 23.8% 6,395 4,499 4,811 15.9% 3,666 2,460 2,879 2,980 1,957 2,124 1,485 1,586 1,143 716 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY
Slide 22: Consolidated Financial Summary
Consolidated Financial Summary Particulars Q4FY24 Q3FY24 Q-o-Q Q4FY23 Y-o-Y FY24 FY23 Y-o-Y Revenue Domestic Mutual Fund Investor Solutions 1,590.1 1,490.7 6.7% 1,235.6 28.7% 5,769.5 4,861.6 18.7% Issuer Solutions 286.8 326.9 -12.3% 241.0 19.0% 1,104.9 982.6 12.4% International & Other Investor Solu
Slide 23: Agenda: Team & Shareholding
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 24: Leadership Team
Leadership Team Venkata Satya Naga Sreekanth Nadella 20+ years of experience Managing Director Previously served as Managing Director at Accenture Services and Transformation manager at IBM Global Services and Chief Executive Officer Vivek Narayan 26+ years of experience 25+ years of experie
Slide 25: Board of Directors
Board of Directors Ex-CMD of Union Bank of India & Ex-Chairman IBA; Director of TransUnion CIBIL Chief Executive Officer and Managing Director with Kotak Vishwanathan Jaideep Hansraj Ex-non-executive chairman of SWIFT India Domestic Securities Mavila Nair (Non-Executive Services Over 28 year
Slide 26: Shareholding Pattern as on 31st March 2024
Shareholding Pattern: as on 31st March 2024 Stock information BSE Ticker 543720 Others 23.3% NSE Symbol KFINTECH Face Value (₹) 10.00 FPIs No. of shares outstanding 17,09,88,673 16.7% Free Float 8,06,99,390 Promoters Depositories, Clearing Houses (General Atlantic) Industry 39.0% and Other Intermedi
Slide 27: Appendix
Appendix EXPERIENCE TRANSFORMATION
Slide 28: Our Journey So Far
Our Journey So Far ◼ Launch of Issuer ◼ Launch of Alternative and ◼ Launch of Pension ◼ General Atlantic ◼ New CEO appointed ◼ Acquired Solutions Business Wealth Management Services Business buyout Hexagram (fund ◼ Acquired Sundaram BNP Paribas Business accounting) Fund Services RTA1 business ◼ List
Slide 29: Our Growth Strategies
Our Growth Strategies Maintain market leadership by further deepening Attract and retain talent relationship with existing clients 6 1 Expand client base and market share 5 2 Pursue strategic acquisitions through enhanced sales and marketing 4 3 Focused, selective international expansion Investing i
Slide 30: Thank You!
Thank You! 27 KFin Technologies Limited, Investor Presentation Q4 FY24
Slide 31: Fact Sheet Q4FY24 & FY24
Fact Sheet Q4FY24 & FY24 2Q Q4FY24 ₹ 2,283.4 million ₹ 4.32 ₹ 1,046.0 million ₹ 744.7 million Revenue EPS EBITDA PAT +24.7% Y-o-Y +30.2% Y-o-Y Margin at 45.8% Margin at 32.6% +4.4% Q-o-Q +11.3% Q-o-Q FY24 ₹ 8,375.3 million ₹ 3,666.0 million ₹ 2,460.5 million ₹ 14.34 Revenue EBITDA PAT EPS +16.3% Y-o
Slide 32: Domestic Mutual Fund and Issuer Solutions metrics
Domestic Mutual Fund Investor Solutions Q4FY24 Q3FY24 Q4FY23 FY24 FY23 SIP book AAUM market share 31.5% 31.5% 31.3% 31.5% 31.3% (last quarter of the period) SIP live folios (million) 35.5 32.5 28.2 35.5 28.2 (end of the period) No of Transactions (million) 100.6 88.7 77.0 345.4 303.1 (for the period
Slide 33: International and Other Investor Solutions: Pension Services
International and Other Investor Solutions: Pension Services Q4FY24 Q3FY24 Q4FY23 FY24 FY23 No of Subscribers 12,21,900 11,00,091 9,56,823 12,21,900 9,56,823 Market share - on subscribers' base 8.3% 7.8% 7.3% 8.3% 7.3% (end of period) Number of Corporates clients 2,327.0 2,244.0 1,985.0 2,327.0 1,98
Slide 34: Consolidated Income Statement
Consolidated Income Statement (₹ million) Q4FY24 Q3FY24 Q4FY23 FY24 FY23 Domestic Mutual Fund Investor 1,590.1 1,490.7 1,235.6 5,769.5 4,861.6 Solutions Issuer Solutions 286.8 326.9 241.0 1,104.9 982.6 International & Other Investor 271.3 215.1 183.1 883.5 652.8 Solutions Global Business Services 81
Slide 35: Independent Auditors' Report
Salarpuria Knowledge City, Orwell B S R and Co B Wing, 6th Floor, Unit-3, Sy No. 83/1 Plot No. 02, Raidurg Chartered Accountants Hyderabad – 500 081, India Telephone + 91 407 182 2000 Fax + 91 407 182 2399 Independent Auditors’ Report To the Board of Directors of KFin Technologies Limited (formerly
Slide 36: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (“SAs”) specified under section 143(10) of the Companies Act, 2013 (“the Act”).
Slide 37: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) purpose of preparation of the consolidated annual financial results by the Management and the Board of Directors of the Holding Company, as aforesaid. In preparing th
Slide 38: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) audited by other auditors, such other auditors remain responsible for the direction, supervision and performance of the audits carried out by them. We remain solely r
Slide 39: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) c. The consolidated annual financial results include the results for the quarter ended 31 March 2024 being the balancing figure between the audited figures in respect
Slide 40: Statement of audited consolidated financial results
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) CIN: L72400TG2017PLC117649 Registered office address: Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana - 500032 Statement of audited consolidated fi
Slide 41: Segment information
Segment information (~- in millions) Consolidated Sl. Quarter ended For the year ended Particulars No. March 31, 2024 December 31, 2023 March 31, 2023 March 31, 2024 March 31, 2023 (Audited - Refer Note 3) (Unaudited) (Audited - Refer Note 3) (Audited) (Audited) 1 Segment revenue Domestic mutual fun
Slide 42: Notes to consolidated financial results
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) Notes: 1. The above consolidated financial results of KFin Technologies Limited ("the Parent Company"/ "the Company"), its subsidiaries (the Company and its subsidiaries together referred to as "the Group") and its assoc
Slide 43: Audited Standalone and Consolidated Balance Sheet
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) CIN: L72400TG2017PLC117649 Registered office address: Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana - 500032 Statement of Audited Standalone and
Slide 44: Audited Standalone and Consolidated Statement of Cash flows
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) CIN: L72400TG2017PLC117649 Registered office address: Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana - 500032 Statement of Audited Standalone and
Slide 45: Independent Auditors' Report
Salarpuria Knowledge City, Orwell B S R and Co B Wing, 6th Floor, Unit-3, Sy No. 83/1 Plot No. 02, Raidurg Chartered Accountants Hyderabad – 500 081, India Telephone + 91 407 182 2000 Fax + 91 407 182 2399 Independent Auditors’ Report To the Board of Directors of KFin Technologies Limited (formerly
Slide 46: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) The Company has recognised an amount of INR 78.41 million as a provision as of 31 March 2024 in the standalone annual financial results related to potential claims by
Slide 47: Independent Auditor's Report (Continued)
B S R and Co Independent Auditor’s Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) whether the company has adequate internal financial controls with reference to financial statements in place and the operating effectiveness of such controls. – Evalu
Slide 48: Statement of audited standalone financial results
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) CIN: L72400TG2017PLC117649 Registered office address: Selenium, Tower B, Plot No- 31 & 32, Financial District, Nanakramguda, Serilingampally, Hyderabad, Rangareddi, Telangana - 500032 Statement of audited standalone fina
Slide 49: Notes to standalone financial results
KFin Technologies Limited (formerly known as KFin Technologies Private Limited) Notes: 1. The above standalone financial results of KFin Technologies Limited ("the Company") have been prepared in accordance with and comply in all material aspects with the Indian Accounting Standards (Ind AS) notifie