KFin Technologies Jumps 5% as Q2 Revenue Surges 34% YoY
Shares of KFin Technologies, a leading investor servicing provider, surged by 5.32% on October 29, 2024, hitting an intraday high of Rs 1,018.55. This rise followed the company’s strong performance in the September quarter of FY25 (Q2FY25).
Key Financial Highlights for Q2FY25:
- Profit After Tax (PAT):
- Increased by 45.5% YoY to Rs 89.3 crore.
- PAT margin stood at 31.8%.
- Revenue from Operations:
- Grew by 34.2% YoY to Rs 280.4 crore.
- EBITDA:
- Jumped 35.1% YoY to Rs 126.5 crore, reflecting an EBITDA margin of 45.1%.
- Asset Under Management (AAUM):
- Recorded robust 44.6% annual growth, outperforming the industry’s 41% growth.
Operational Milestones:
- Added 358 new corporate clients and 11.5 million investor folios under issuer solutions.
- Secured in-principle approval from the RBI to establish a subsidiary in Thailand, furthering international expansion plans.
CEO’s Statement:
Sreekanth Nadella, Managing Director and CEO, expressed satisfaction with the performance, citing:
- Structural growth across diversified business segments.
- Strengthened revenue and profitability.
- A promising deal pipeline and readiness for further growth, backed by innovative technology.
He also emphasized the company’s strides in global fund administration and alternative investment solutions.
Business Overview:
KFin Technologies is a technology-driven financial services platform catering to capital markets ecosystems. Its services include:
- Investor solutions for mutual funds, alternative investments, and insurance investments.
- Global operations in regions such as Malaysia, Singapore, Hong Kong, Thailand, and Canada.
In India, the company is recognized as the largest provider of investor and issuer solutions to mutual funds and corporate issuers.
Market Performance:
Despite the early surge, KFin Technologies’ shares were trading 1% lower at Rs 956 by 1:13 PM, reflecting the broader market trend as the BSE Sensex declined by 0.34% to 79,735.61.
Promoted by General Atlantic Singapore Fund Pte Ltd (GASF), KFin Technologies continues to show promising growth with a focus on expanding its global footprint and strengthening its technology-driven services.