KFin Technologies Limited — Earnings Release 2024

Jan 25, 2024

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January 25, 2024

CS&G/STX/MQ2024/12

1) National Stock Exchange of India Limited Exchange Plaza, C-1, Block G, Bandra Kurla Complex, Bandra (E), Mumbai – 400 051 Scrip Symbol: KFINTECH

2) BSE Limited

Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai – 400 001 Scrip Code: 543720

• Sub. : Press Release

• Ref. : Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“LODR Regulations”)

Dear Sir / Madam,

Pursuant to Regulation 30 and other applicable provisions of the LODR Regulations, please find enclosed herewith the Press Release titled “ STRONG QUARTERLY PERFORMANCE ACROSS SEGMENTS LEADING TO ROBUST REVENUE GROWTH AND MARGIN EXPANSION ”.

This is for your information and records.

Thanking you,

Yours faithfully,

For KFin Technologies Limited

Digitally signed by ALPANA UTTAM KUNDU Date: 2024.01.25 17:52:54 +05'30'

Alpana Kundu

Company Secretary and Compliance Officer

ICSI Membership No.: F10191

Encl.: a/a

CIN: L72400TG2017PLC117649

compliance.corp@kfintech.com

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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 31[st] December 2023 today.

– Financial Highlights Q3FY24

• Revenue from operations stood at ₹ 2,187.2 million, up 16.3% y-o-y

• Revenue from international and other investor solutions businesses grew at 28.2% y-o-y

• EBITDA stood at ₹ 979.0 million, up 21.3% y-o-y, EBITDA margin at 44.8% in Q3FY24 vs. 42.9% in Q3FY23

• PAT at ₹ 668.3 million, up 25.2% y-o-y, PAT margin at 30.6% in Q3FY24 vs. 28.4% in Q3FY23

• Diluted EPS stood at ₹ 3.88, up 23.1% y-o-y

Financial Highlights – 9MFY24

• Revenue from operations stood at ₹ 6,091.9 million, up 13.5% y-o-y

• Revenue from international and other investor solutions businesses grew at 30.3% y-o-y

• EBITDA stood at ₹ 2,619.9 million, up 22.3% y-o-y, EBITDA margin at 43.0% in 9MFY24 vs. 39.9% in 9MFY23

• PAT at ₹ 1,715.8 million, up 23.7% y-o-y, PAT margin at 28.2% in 9MFY24 vs. 25.8% in 9MFY23

• Diluted EPS stood at ₹ 10.00, up 21.9% y-o-y

• Cash and cash equivalents at ₹ 3,134.3 million as on December 31, 2023

• Non-domestic mutual fund revenue share in overall revenue is at 31% in 9MFY24

– Business Highlights Q3FY24

• Overall AAUM[1] growth at 22.7% y-o-y vs. 22.2% for the industry, market share[1] at 31.8%

• Equity AAUM[1] growth at 24.2% y-o-y vs. 29.8% for the industry, market share[1] at 33.5%

• Added 170[2] new corporate clients and five million[2] investor folios under issuer solutions; Won RTA mandate from Usha Martin Limited; Market share[3] in NSE500 companies at 46.5%;

• Number of international clients increased to 54[4]

• Of the two LOIs received from Malaysian clients for RTA and FA in Oct-23, contract execution completed with one and received LOA[5] from the other; Won an RTA contract in Middle East from an existing client; Won a new deal[5] in Malaysia for RTA and FA managed services

• No of alternate funds at 455[4] ; Market share[4] at 36.4%; AAUM grew 54.4% y-o-y to ₹ 910 billion[4] ; Launched XAlt, an integrated fund administration platform for the global alternate asset managers

• NPS subscriber base[4] grew to 1.10 million, up by 25.3% y-o-y vs. 11.9% y-o-y growth for the industry

Commenting on the company’s performance, Sreekanth Nadella, Managing Director and CEO, KFin Technologies Limited said, “We are excited to deliver yet another quarter of strong performance in terms of growth as well as profitability driven by strong focus on execution across our diversified business segments. We have a strong pipeline of deals in the international markets which we believe will propel our overall growth. KFintech is uniquely positioned to offer full-suite of fund administration services to the global asset managers using its state-of-the-art technology stack and innovative value-added solutions. With the launch of the industry first platform XAlt, KFintech aims to set new standards in the global fund administration space to offer fully automated system to global alternate asset managers that aligns with the evolving requirements. India’s alternate asset management industry is at an inflection point and with global industry too expected to grow at a rapid pace, KFintech is well poised to seize the opportunity leveraging its product suite and sales efforts.”

KEY FIGURES					₹ Million	₹ Million
	Q3 FY24	Q2 FY24	Q3 FY23	9M FY24	9M FY23	FY23
Revenue	2,187.2	2,089.7	1,881.3	6,091.9	5,368.9	7,200.3
EBITDA	979.0	936.7	807.0	2,619.9	2,142.0	2,980.4
EBITDA margin %	44.8%	44.8%	42.9%	43.0%	39.9%	41.4%
Profit After Tax(PAT)	668.3	613.8	533.8	1,715.8	1,387.2	1,957.4
PAT margin %	30.6%	29.4%	28.4%	28.2%	25.8%	27.2%
Diluted EPS(₹)*	3.88	3.58	3.15	10.00	8.20	11.52

*Not annualized

(1) Last quarter average; (2) During the quarter; (3) As on December 31, 2023, based on market capitalization; (4) As on December 31, 2023;

(5) In January 2024

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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 issuers across asset classes in India and provide comprehensive investor solutions including transfer agency, fund administration, fund accounting, data analytics, digital onboarding, transaction origination and processing for alternate investments, mutual funds, unit trusts, insurance investments, and private retirement schemes to global asset managers in Malaysia, Philippines, Singapore, Hong Kong, Thailand and Canada. In India, KFintech is the largest investor solutions provider to Indian mutual funds, based on number of AMCs serviced as on December 31, 2023, and the largest issuer solutions provider based on number of clients serviced as on December 31, 2023. KFintech is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds, wealth managers and pension as well as corporate issuers and is one of the three operating central record keeping agencies for the National Pension System in India.

KFintech is listed on the National Stock Exchange of India Limited and BSE Limited. General Atlantic Singapore Fund Pte Ltd (“GASF”), a leading global private equity investor, is the promoter of the KFintech.

For more information please contact:

Amit Murarka Email: InvestorRelations@kfintech.com

Disclaimer:

Certain statements that may be made or discussed in this release may be forward-looking statements and/or based on management’s current expectations and beliefs concerning future developments and their potential effects upon KFin Technologies Limited. The forward-looking statements are not a guarantee of future performance and involve risks and uncertainties and there are important factors that could cause actual results to differ, possibly materially, from expectations reflected in such forward-looking statements. KFin Technologies Limited does not intend, and is under no obligation, to update any forward-looking statement made in this release.

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