Kfin Technologies Limited · NSE:KFINTECH
Kfin Technologies — Q3 FY24 Earnings Presentation
45 slides from Kfin Technologies's earnings presentation, Jan 25, 2024
Slide 1: Exchange filing cover letter
A January 25, 2024 CS&G/STX/MQ2024/13 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 Presen
Slide 2: Strong quarterly performance across segments leading to robust revenue growth
STRONG QUARTERLY PERFORMANCE ACROSS SEGMENTS LEADING TO ROBUST REVENUE GROWTH AND MARGIN EXPANSION Hyderabad, January 25, 2024: KFin Technologies Limited announced its financial results for the quarter and nine months ended 31st December 2023 today. Financial Highlights – Q3FY24 − Revenue from opera
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 Q3 FY24 & 9M FY24
KFin Technologies Limited Investor Presentation Q3 FY24 & 9M FY24 (for the quarter and nine months period ended December 31, 2023)
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 Q3 FY24
Slide 7: Agenda
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 462 Won 154 out of 245 Over 259 Investor Solution provider to AMCs in India; ₹15.6 tn AAUM3 Last new AMCs launched in India New products launched Indi
Slide 9: 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 Delivered strong quarterly performance leading to robust revenue growth across segments and margin expansion Q3FY24: Revenue growth at 16% y-o-y; EBITDA growth at 21% y-o-y and margins at 44.8%; PAT growth at 25% y-o-y and margins at 30.6% 9MFY24: Revenue growth at 13% y-o-y; EBITDA g
Slide 11: 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) +29.8% y-o-y (₹ billion) (in million) +22.2% y-o-y + 4.7% q-o-q +9.1% q-o-q 176.1 165 Mutual Fund2 26.4 113 94 20.3 84.2 76 49.2 18.4 65 38.4 40.5 32.1 13.3 35 27.1 11.2 Sep-21 Sep-22
Slide 13: 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 Q3FY23 Q2FY24 Q3FY24 18. 0 35% 16. 0 26% 30% 14. 0 25% 22.7% (y
Slide 15: Issuer solutions - Maintaining the leadership position
Issuer solutions - Maintaining the leadership position No of corporate clients1 No of investor folios1 ▪ 170 clients added during Q3FY24 +13.2% y-o-y (in million) +9.2% y-o-y +3.0% q-o-q +4.2% q-o-q ▪ Added five million folios during Q3FY24 ▪ Appointed as an RTA for Usha Martin Limited ▪ Main Board
Slide 16: International investor solutions: Expanding global footprints
International investor solutions: Expanding global footprints No of clients1 Growing global footprint 54 Solutions No of Contracts 36 RTA 40 Canada (1) Fund 23 9MFY23 9MFY24 Administration Middle East (1) Gift City (16) IndiaThailand Hong Kong (1) X new clients added Number of clients (1) • • Malays
Slide 17: Other investor solutions: Younger & faster growing businesses
Other investor solutions: Younger & faster growing businesses No of Funds serviced by +30.7% y-o-y AAUM1 +54.4% y-o-y Alternates & Wealth KFintech1 +4.8% q-o-q (₹ billion) +7.8% q-o-q ▪ Total no of funds at 455, market share2 at 36.4% ▪ Client wins include Nippon AIF, MOPE Gift, ASK AIF, 108 Capital
Slide 18: 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 Q3FY24 % Change 9MFY24 % Change 16.3% y-o-y Revenue from Operations 2,187.2 6,091.9 13.5% y-o-y 4.7% q-o-q 21.3% y-o-y EBITDA 979.0 2,619.9 22.3% y-o-y 4.5% q-o-q 186 bps y-o-y EBITDA Margin (%) 44.8% 43.0% 311 bps y-o-y 6 bps q-o-q 25.2% y-o-y PAT 668.3 1,715.8 23.
Slide 20: Quarterly Financial Trend
Quarterly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 16.3% Y-o-Y 21.3% Y-o-Y 25.2% Y-o-Y 31.1% 30.6% 45.8% 44.8% 44.8% 28.4% 29.4% 2,187 42.9% 2,090 1,881 38.8% 23.9% 1,831 1,815 668 614 570 534 434 937 979 807 838 704 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q3FY24 Q3FY23 Q4FY23 Q1FY24
Slide 21: Yearly Financial Trend
Yearly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 13.5% Y-o-Y 22.3% Y-o-Y 23.7% Y-o-Y 7,200 44.1% 45.0% 43.0% 27.2% 41.4% 39.9% 6,395 6,092 28.2% 25.8% 5,369 23.8% 23.2% 4,811 2,879 2,980 1,957 2,620 1,716 2,124 2,142 1,485 1,387 1,143 FY21 FY22 FY23 9MFY23 9MFY24 FY21 FY22
Slide 22: Consolidated Financial Summary
Consolidated Financial Summary Particulars Q3FY24 Q2FY24 Q-o-Q Q3FY23 Y-o-Y 9MFY24 9MFY23 Y-o-Y FY23 Revenue Domestic Mutual Fund Investor Solutions 1,490.7 1,408.6 5.8% 1,263.3 18.0% 4,179.5 3,626.0 15.3% 4,861.5 Issuer Solutions 326.9 291.2 12.3% 274.0 19.3% 818.0 741.5 10.3% 982.6 International &
Slide 23: 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 19+ 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 December 2023
Shareholding Pattern: as on 31st December 2023 Stock information BSE Ticker 543720 Others 24.2% NSE Symbol KFINTECH Face Value (₹) 10.00 FPIs No. of shares outstanding 17,06,45,588 12.1% Free Float 8,03,56,305 Promoters Depositories, Clearing Houses (General Atlantic) Industry Banks, Insurance 39.0%
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 Q3 FY24
Slide 31: Fact Sheet Q3FY24 & 9MFY24
Fact Sheet Q3FY24 & 9MFY24 2Q Q3FY24 ₹ 2,187.2 million ₹ 3.88 ₹ 979.0 million ₹ 668.3 million Revenue EPS EBITDA PAT +16.3% Y-o-Y +23.1% Y-o-Y Margin at 44.8% Margin at 30.6% +4.7% Q-o-Q +8.4% Q-o-Q 9MFY24 ₹ 6,091.9 million ₹ 2,619.9 million ₹ 1,715.8 million ₹ 10.00 Revenue EBITDA PAT EPS +13.5% Y-
Slide 32: Fact Sheet: Domestic Mutual Fund and Issuer Solutions
Domestic Mutual Fund Investor Solutions Q3FY24 Q2FY24 Q3FY23 9MFY24 9MFY23 SIP book AAUM market share 31.5% 31.5% 31.5% 31.5% 31.5% (last quarter of the period) SIP live folios (million) 32.5 30.8 27.3 32.5 27.3 (end of the period) No of Transactions (million) 88.7 81.6 74.1 244.8 226.2 (for the per
Slide 33: International and Other Investor Solutions: Pension Services
International and Other Investor Solutions: Pension Services Q3FY24 Q2FY24 Q3FY23 9MFY24 9MFY23 No of Subscribers 11,00,091 10,43,874 8,77,973 11,00,091 8,77,973 Market share - on subscribers' base 7.8% 7.7% 7.0% 7.8% 7.0% (end of period) Number of Corporates clients 2,244.0 2,177.0 1,854.0 2,244.0
Slide 34: Consolidated Income Statement (₹ million)
Consolidated Income Statement (₹ million) Q3FY24 Q2FY24 Q3FY23 9MFY24 9MFY23 Domestic Mutual Fund Investor 1,490.7 1,408.6 1,263.3 4,179.5 3,626.0 Solutions Issuer Solutions 326.9 291.2 274.0 818.0 741.5 International & Other Investor 215.1 223.3 167.8 612.1 469.7 Solutions Global Business Services
Slide 35: B S R and Co Limited Review Report (consolidated)
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 Limited Review Report on unaudited consolidated financial results of KFin Technologies Limited
Slide 36: Limited Review Report (Continued)
B S R and Co Limited Review Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) 5 Hexagram Fintech SDN. BHD. Malaysia Subsidiary 6 KFin Global Technologies (IFSC) Limited India Subsidiary 7 WebileApps (India) Private Limited (w.e.f. India Subsidiary 19
Slide 37: Limited Review Report (Continued)
B S R and Co Limited Review Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) account through an off-market transaction without any authorisation from the Client. The Board of Directors of the Parent Company after considering legal advice transferred
Slide 38: Limited Review Report (Continued)
B S R and Co Limited Review Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) Our conclusion is not modified in respect of this matter. For B S R and Co Chartered Accountants Firm’s Registration No.:128510W AMIT Digitally signed by AMIT KUMAR BAJAJ KU
Slide 39: Statement of unaudited 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 unaudited consolidated
Slide 40: Segment information
Segment information I I I II LJ I I ~ Consolidated Sl. Quarter ended Nine months period ended For the year ended Particulars '--I---- - No. December 31, 2023 September 30, 2023 December 31, 2022 December 31, 2023 December 31, 2022 March 31, 2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaud
Slide 41: 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 42: Limited Review Report (standalone)
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 Limited Review Report on unaudited standalone financial results of KFin Technologies Limited (
Slide 43: Limited Review Report (Continued)
B S R and Co Limited Review Report (Continued) KFin Technologies Limited (formerly known as KFin Technologies Private Limited) for impairment every year. Such accounting treatment of this transaction was different from that prescribed under Ind AS 103 – ‘Business Combinations’ which became applicabl
Slide 44: Statement of unaudited 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 unaudited standalone fi
Slide 45: 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