KFin Technologies Q1 PAT up 16% on steady AUM growth, client addition

KFin Technologies posted a net profit of ₹43.4 crore for Q1 FY24, up 15.9 per cent y-o-y led by 7.6 per cent increase in revenue from operations to ₹181.5 crore.

Non-domestic mutual fund revenue accounted for 29 per cent of overall revenue during the quarter.

The RTA’s (registrar and transfer agent’s) EBITDA for the quarter was up 12.8 per cent at ₹70.4 crore. EBITDA margin was at 38.8 per cent compared with 37.0 per cent a year ago.

Average AUM grew 14.5 per cent y-o-y, slightly higher than 14.2 per cent for the industry, helping the company in achieving a market share of 31.3 per cent. Equity average AUM growth was 15.5 per cent, lower than 17.3 per cent for the industry. The company had a market share of 34.4 per cent in this segment.

Total number of alternate funds were at 416, with a market share of 36.4 per cent. The NPS subscriber base grew to 10 lakh, up 24 per y-o-y.

Cash and cash equivalents were at ₹319.8 crore as of June 30.

Also read: Jio BlackRock aims to disrupt $500 billion Indian AMC industry

KFin Technologies added 158 new corporate clients under issuer solutions, and managed 4 out of 7 mainboard IPOs during the quarter. A new client Bajaj Finserv Asset Management Ltd went live in June. The company was appointed as the RTA for Jio Financial Services in July 2023.

The company also won an RTA mandate from a new client in Malaysia and Singapore each, won 28 new funds from an existing client in Philippines for RTA services, onboarded 5 new clients in Gift City (India), and won its maiden fund administration contract in Thailand in July 2023.

“With an excellent sales performance in the first quarter and a strong pipeline, we are confident of yielding better performance from all the business lines, especially from the younger and faster growing segments as we move into the subsequent quarters,” said MD and CEO Sreekanth Nadella.

“KFin Tech is a technology-led platform-based company and we are committed to use frugal and agile engineering to build innovative solutions for global asset managers by running an efficient and optimised operation,” he added.

Leave a Comment