KFin Technologies (KFINTECH) Q2 24/25 earnings summary

Executive summary

• Achieved 34% year-over-year revenue growth and 18% sequential growth, with EBITDA margin surpassing 45% and PAT margin at 42.6% for the quarter; significant client wins and international expansion, including mandates in Thailand and GIFT City.

• Value-added services revenue grew by 46% year-over-year, now comprising nearly 8% of total revenue.

• Standalone and consolidated unaudited financial results for the quarter and half-year ended September 30, 2024, were approved and released, with statutory auditors providing an unmodified review conclusion.

Financial highlights

• Q2 FY25 consolidated revenue from operations was ₹2,804.74 million, up 34.2% year-over-year and 18.1% sequentially; EBITDA for Q2 FY25 was ₹1,265.4 million, up 35.1% year-over-year, with margin at 45.1%.

• PAT for Q2 FY25 was ₹893.22 million, up 45.5% year-over-year, with margin at 31.8%; diluted EPS for Q2 FY25 was ₹5.21, up from ₹3.62 year-over-year.

• Cash & cash equivalents at period end: ₹241.55 million (consolidated).

• Domestic mutual fund business grew 39% year-over-year, with one-third of growth from inflows and two-thirds from mark-to-market gains.

• Issuer Solutions revenue increased 26% year-over-year, driven by higher corporate actions and folio additions.

Outlook and guidance

• Management expects domestic mutual fund and Issuer Solutions to sustain mid-teen growth, while international and AIF fund accounting are projected to outpace this.

• Continued focus on expanding value-added services to reach 15% of revenue and de-risking from Indian mutual fund dependency.

• Ongoing investments in technology, talent, and product development to support future growth and automation.

• Final dividend of ₹5.75 per share was approved at the August 2024 AGM.