Kfin Technologies Limited · NSE:KFINTECH

Kfin Technologies — Q2 FY2024 Earnings Presentation

34 slides from Kfin Technologies's earnings presentation, Oct 20, 2023

  1. Slide 1: Exchange cover letter for investor presentation and factsheet

    A October 20, 2023 CS&G/STX/DQ2023/15 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

  2. Slide 2: KFintech Delivers Strong Quarterly Performance

    KFINTECH DELIVERS STRONG QUARTERLY PERFORMANCE Hyderabad, October 20, 2023: KFin Technologies Limited announced its financial results for the quarter and period ended 30th September 2023 today. Financial Highlights – Q2FY24 − Revenue from operations stood at ₹ 2,089.7 million, up 16.0% y-o-y − Total

  3. 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

  4. Slide 4: KFin Technologies Limited Q2 FY24

    KFin Technologies Limited Investor Presentation Q2 FY24 (for the quarter and period ended September 30, 2023)

  5. 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

  6. 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 Q2 FY24

  7. Slide 7: Agenda

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  8. 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; ₹14.8 tn AAUM3 Last new AMCs launched in India New products launched Indi

  9. Slide 9: Key Highlights

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  10. Slide 10: Key Highlights

    Key Highlights Strong quarterly performance led by faster growth in non-domestic mutual fund businesses and better execution driving margin expansion Q2FY24: Revenue growth at 16% y-o-y; EBITDA growth at 32% y-o-y and margins at 44.9%; PAT growth at 28% y-o-y and margins at 29.3% H1FY24: Revenue gro

  11. Slide 11: Industry Highlights

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  12. 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) + 24.5% y-o-y (₹ billion) (in million) + 20.3% y-o-y + 9.1% q-o-q +12.6% q-o-q 160.4 157 Mutual Fund2 24.2 107 77.9 93 20.3 71 47.0 18.4 66 38.4 40.5 32.1 13.3 33 27.1 11.2 Sep-20 Sep

  13. Slide 13: Business Highlights

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  14. 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% 31% 27% KFintech Industry Q2FY23 Q1FY24 Q2FY24 16. 0 35% 14. 0 26% 30% 12. 0 25% 10. 0 20

  15. Slide 15: Issuer solutions - Maintaining the leadership position

    Issuer solutions - Maintaining the leadership position No of corporate clients1 No of investor folios1 + 12.7% y-o-y (in million) + 5.6% y-o-y + 3.1% q-o-q + 3.9% q-o-q ▪ 172 clients added during Q2FY24 ▪ Appointed as an RTA for State Bank of India ▪ Added four million folios during Q2FY24 ▪ Main Bo

  16. Slide 16: International investor solutions: Expanding global footprints

    International investor solutions: Expanding global footprints No of clients1 Growing global footprint 50 Solutions No of Contracts 33 RTA 37 Canada Fund 21 H1FY23 H1FY24 Administration Gift City India Hong Kong Thailand • X new clients added • Number of clients Philippines Malaysia during the quarte

  17. Slide 17: Other investor solutions: Younger & faster growing businesses

    Other investor solutions: Younger & faster growing businesses No of Funds serviced by + 44.2% y-o-y AAUM1 + 36.1% y-o-y Alternates & Wealth KFintech1 + 4.3% q-o-q (₹ billion) +14.2% q-o-q ▪ Total no of funds at 434, market share2 at 37.2% 434 ▪ Client wins include Kedaara Capital, Northern Arc, Mult

  18. Slide 18: Financial Highlights

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  19. Slide 19: Financial Performance

    Financial Performance Particulars Q2FY24 % Change H1FY24 % Change 16.0% y-o-y Revenue from Operations 2,089.7 3,904.8 12.0% y-o-y 15.1% q-o-q 31.8% y-o-y EBITDA 936.7 1,640.9 22.9% y-o-y 33.0% q-o-q 538 bps y-o-y EBITDA Margin (%) 44.8% 42.0% 375 bps y-o-y 602 bps q-o-q 28.1% y-o-y PAT 613.8 1,047.5

  20. Slide 20: Quarterly Financial Trend

    Quarterly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 16.0% Y-o-Y 31.8% Y-o-Y 28.1% Y-o-Y 31.1% 45.8% 44.8% 28.4% 29.4% 2,090 42.9% 26.6% 39.4% 38.8% 1,802 1,881 1,831 1,815 23.9% 614 570 534 479 434 937 807 838 711 704 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q2FY24 Q2FY23 Q3FY23 Q4FY23

  21. Slide 21: Yearly Financial Trend

    Yearly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 12.0% Y-o-Y 22.9% Y-o-Y 22.7% Y-o-Y 7,200 44.1% 45.0% 41.4% 42.0% 6,395 38.3% 27.2% 26.8% 23.8% 23.2% 24.5% 4,811 3,905 3,488 2,879 2,980 1,957 2,124 1,485 1,641 1,143 1,048 1,335 853 FY21 FY22 FY23 H1FY23 H1FY24 FY21 FY22 F

  22. Slide 22: Consolidated Financial Summary

    Consolidated Financial Summary Particulars Q2FY24 Q1FY24 Q-o-Q Q2FY23 Y-o-Y H1FY24 H1FY23 Y-o-Y FY23 Revenue Domestic Mutual Fund Investor Solutions 1,408.6 1,280.3 10.0% 1,210.6 16.3% 2,688.9 2,362.7 13.8% 4,861.5 Issuer Solutions 291.2 199.9 45.7% 258.5 12.6% 491.1 467.6 5.0% 982.6 International &

  23. Slide 23: Team & Shareholding

    1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding

  24. 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

  25. 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

  26. Slide 26: Shareholding Pattern as on 30th September 2023

    Shareholding Pattern: as on 30th September 2023 Stock information BSE Ticker 543720 Others 19.5% NSE Symbol KFINTECH FPIs 9.2% Face Value (₹) 10.00 No. of shares outstanding 17,01,18,861 Banks, Insurance Free Float 8,64,84,258 Cos & Other DIIs 15.3% Depositories, Clearing Houses Industry and Other I

  27. Slide 27: Appendix

    Appendix EXPERIENCE TRANSFORMATION

  28. 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

  29. 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

  30. Slide 30: Thank You!

    Thank You! 27 KFin Technologies Limited, Investor Presentation Q2 FY24

  31. Slide 31: Fact Sheet

    Fact Sheet Q2FY24 & H1FY24 2Q Q2FY24 ₹ 2,089.7 million ₹ 3.58 ₹ 936.7 million ₹ 613.8 million Revenue EPS EBITDA PAT +16.0% Y-o-Y +26.2% Y-o-Y Margin at 44.8% Margin at 29.4% +15.1% Q-o-Q +42.5% Q-o-Q H1FY24 ₹ 3,904.8 million ₹ 1,640.9 million ₹ 1,047.5 million ₹ 6.11 Revenue EBITDA PAT EPS +12.0% Y

  32. Slide 32: Domestic Mutual Fund, Issuer and International Solutions KPIs

    Domestic Mutual Fund Investor Solutions Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY22 SIP book AAUM market share 31.5% 31.5% 31.5% 31.5% 31.5% (last quarter of the period) SIP live folios (million) 30.8 29.2 25.7 30.8 25.7 (end of the period) No of Transactions (million) 81.6 74.5 76.3 156.1 152.1 (for the per

  33. Slide 33: International and Other Investor Solutions: Pension Services

    International and Other Investor Solutions: Pension Services Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY23 No of Subscribers 10,43,874 9,95,456 8,41,938 10,43,874 8,41,938 Market share - on subscribers' base 7.7% 7.4% 6.9% 7.7% 6.9% (end of period) Number of Corporates clients 2,177.0 2,109.0 1,756.0 2,177.0 1

  34. Slide 34: Consolidated Income Statement

    Consolidated Income Statement (₹ million) Q2FY24 Q1FY24 Q2FY23 H1FY24 H1FY23 Domestic Mutual Fund Investor 1,408.6 1,280.3 1,210.6 2,688.9 2,362.7 Solutions Issuer Solutions 291.2 199.9 258.5 491.1 467.6 International & Other Investor 223.3 173.7 150.5 396.9 301.8 Solutions Global Business Services

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