Kfin Technologies Limited · NSE:KFINTECH
Kfin Technologies — Q3 FY2023 Earnings Presentation
31 slides from Kfin Technologies's earnings presentation, Feb 10, 2023
Slide 1: Exchange filing cover letter
A February 10, 2023 CS&G/STX/MQ2023/08 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 Prese
Slide 2: Investor Presentation Q3 & 9M FY2022-2023
KFin Technologies Limited Investor Presentation Q3 & 9M FY2022-2023 (for the quarter & nine months period ended December 31, 2022)
Slide 3: 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 4: 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 FY23
Slide 5: Agenda: Company Overview
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 6: Our Journey So Far
Company Overview 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 RTA
Slide 7: KFintech: At a Glance
Company Overview KFintech: At a Glance Scaled platform with strong track record of growth and leadership Investor Solutions – Domestic Mutual Funds Largest 262 out of 462 Won 154 out of 225 Over 209 Investor Solution provider to AMCs in India; ₹12.7 tn AAUM3 Last new AMCs launched in India New produ
Slide 8: Our Growth Strategies
Company Overview 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 expa
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 KFintech continues to maintain its growth trajectory with diversified revenue mix & faster growth across its business segments Q3FY23: Revenue growth at 12% y-o-y; EBITDA growth at 9% y-o-y & margins at 42.9%; PAT growth at 79% y-o-y & margins at 28.4% 9MFY23: Revenue growth at 17% 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: Industry Highlights: India Performance
Industry Highlights India Performance Overall AAUM1 Equity AAUM 1 Monthly SIP inflows Folios Total Equity SIPs (₹ trillion) (₹ trillion) (₹ billion) (in million) + 5.4% y-o-y + 12.4% y-o-y 135.7 141 + 3.1% q-o-q + 4.7% q-o-q Mutual Fund2 90 95 40.3 20.3 83.8 38.4 18.4 61 64 32.1 31 13.3 27.1 11.2 Se
Slide 13: South East Asia: Opportunity Size
Industry Highlights South East Asia: Opportunity Size Singapore Hong Kong Malaysia Philippines Indonesia Thailand GDP (2021) $361bn $370bn $348bn $367bn $775bn $311bn GDP CAGR 2.7% 3.1% 5.4% 6.6% 5.6% 4.0% (2021E-25P) 691 Mutual Fund 374 Industry 228 195 192 167 139 AUM ($bn) 122 9 41 5 24 2016 2021
Slide 14: Agenda: Business Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 15: Domestic Mutual Fund investor solutions
Business Highlights 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) 32% 14. 0 30% 35% 26% 12. 0 27% 30% KFintech Industry Q3FY22 Q2FY23 Q3FY23 10
Slide 16: Issuer solutions - Sustaining & enhancing leadership position
Business Highlights Issuer solutions - Sustaining & enhancing the leadership position No of corporate clients1 No of investor folios1 + 11.5% y-o-y (in million) + 13.1% y-o-y + 2.5% q-o-q + 0.7% q-o-q ▪ 128 clients added during Q3; 409 clients added during 9MFY23 5,179 109 ▪ 0.8 million folios added
Slide 17: International investor solutions: Continuous expansion of TAM
Business Highlights International investor solutions: Continuous expansion of TAM Growing global footprint No of clients1 33 Acquisition of Hexagram in Feb’22 helped to add new product line & 8 fund administration clients Canada 22 Gift City Dec-21 Dec-22 India Hong Kong • X new clients added • Numb
Slide 18: Other investor solutions: Younger & faster growing businesses
Business Highlights Other investor solutions: Younger & faster growing businesses No of Funds serviced by + 32.3% y-o-y AAUM1 + 28.1% y-o-y ▪ 47 funds added in Q3; 80 funds added during 9MFY23 Alternates & Wealth KFintech1 + 15.6% q-o-q (₹ billion) + 3.5% q-o-q ▪ 33.3% market share2 348 642 505 ▪ Si
Slide 19: Agenda: Financial Highlights
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 20: Financial Performance
Financial Highlights Financial Performance Particulars Q3FY23 % Change 9MFY23 % Change 12.1% y-o-y Revenue from Operations 1,881.3 5,368.9 17.1% y-o-y 5.0% q-o-q 9.1% y-o-y EBITDA 807.0 2,142.0 4.9% y-o-y 13.6% q-o-q EBITDA Margin (%) 42.9% 39.9% 78.6% y-o-y PAT 533.8 1,387.2 42.0% y-o-y 11.4% q-o-q
Slide 21: Quarterly Financial Trend
Financial Highlights Quarterly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 12.1% Y-o-Y 1,881 46.3% 28.1% 28.4% 1,809 1,792 44.1% 26.7% 1,678 1,695 42.9% 39.7% 36.8% 22.1% 534 509 479 17.8% 374 837 807 740 711 299 624 Q3FY22 Q4FY22 Q1FY23 Q2FY23 Q3FY23 Q3FY22 Q4FY22 Q1FY23 Q2
Slide 22: Yearly Financial Trend
Financial Highlights Yearly Financial Trend Revenue from Operations EBITDA & Margin PAT & Margin 17.1% Y-o-Y 25.8% 6,395 44.1% 45.0% 44.5% 23.8% 39.9% 23.2% 21.3% 5,369 35.3% 4,811 4,587 4,499 15.9% 1,485 1,387 2,879 1,143 2,124 2,142 977 2,041 1,586 716 FY20 FY21 FY22 9MFY22 9MFY23 FY20 FY21 FY22 9
Slide 23: Consolidated Financial Summary
Financial Highlights Consolidated Financial Summary Particulars Q3FY23 Q2FY23 Q-o-Q Q3FY22 Y-o-Y 9MFY23 9MFY22 Y-o-Y FY22 Revenue Domestic Mutual Fund Investor Solutions 1,263.3 1,201.4 5.1% 1,202.3 5.1% 3,626.0 3,264.5 11.1% 4,514.1 Issuer Solutions 274.0 258.5 6.0% 196.4 39.5% 741.5 534.2 38.8% 74
Slide 24: Agenda: Team & Shareholding
1. Company Overview 2. Key Highlights 3. Industry Highlights 4. Business Highlights 5. Financial Highlights 6. Team & Shareholding
Slide 25: Leadership Team
Team & Shareholding 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
Slide 26: Board of Directors
Team & Shareholding 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 Ser
Slide 27: Shareholding Pattern: as on 31st December 2022
Team & Shareholding Shareholding Pattern: as on 31st December 2022 Stock information BSE Ticker 543720 Others 18.1% NSE Symbol KFINTECH FPIs 8.4% Face Value (₹) 10.00 No. of shares outstanding 16,75,68,883 Banks, Insurance Cos & Other DIIs Free Float 2,25,41,183 16.1% Depositories, Clearing Houses I
Slide 28: Thank You!
Thank You! 27 KFin Technologies Limited, Investor Presentation Q3 FY23
Slide 29: Fact Sheet Q3FY23 & 9MFY23
Fact Sheet Q3FY23 & 9MFY23 Q Q3 FY2023 ₹ 1,881.3 million ₹ 3.15 ₹ 807.0 million ₹ 533.8 million Revenue EPS EBITDA PAT +12.1% Y-o-Y +70.5% Y-o-Y Margin at 42.9% Margin at 28.4% +5.0% Q-o-Q +11.3% Q-o-Q 9M FY2023 ₹ 5,368.9 million ₹ 2,142.0 million ₹ 1,387.2 million ₹ 8.20 Revenue EBITDA PAT EPS +17.
Slide 30: Fact Sheet: Issuer Solutions KPIs
Fact Sheet Q3FY23 & 9MFY23 Issuer Solutions KPIs Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 No of Clients 5,179.0 5,051.0 4,643.0 5,179.0 4,643.0 No of folios (million) 108.7 107.9 96.1 108.7 96.1 (end of the period) No of Tranactions (million) 2.5 1.7 2.1 2.5 2.1 (cumulative) No of IPOs Handled (Main
Slide 31: Fact Sheet: Consolidated Income Statement
Fact Sheet Q3FY23 & 9MFY23 Consolidated Income Statement (₹ million) Particulars Q3 FY23 Q2 FY23 Q3 FY22 9M FY23 9M FY22 Domestic Mutual Fund Investor 1,263.3 1,201.4 1,202.3 3,626.0 3,264.5 Solutions Issuer Solutions 274.0 258.5 196.4 741.5 534.2 International & Other Investor 167.8 150.5 115.6 469