KFin Technologies (KFINTECH) Q4 18/19 earnings summary

Executive summary

• FY19 included the merger of the RTA undertaking and Karvy Computershare effective Nov. 17, 2018; reported results are not strictly comparable with prior-year figures.

• Investor servicing remained a market-leading business, supported by digital platform investment and growth in equity mutual fund servicing, AIF, PMS, wealth management and ASEAN operations.

Financial highlights

• Audited standalone FY19 revenue from operations was ₹15,869.27 lakh, PBT ₹1,350.11 lakh and PAT ₹848.30 lakh; total comprehensive income was ₹900.22 lakh.

• Consolidated FY19 total income was ₹16,475 lakh, PBT ₹1,458 lakh, PAT ₹942 lakh and total comprehensive income ₹967 lakh.

• Standalone finance cost was ₹1,907.86 lakh and depreciation and amortisation ₹3,043.52 lakh, including ₹2,496.26 lakh goodwill amortisation.

Outlook and guidance

• FY20 priorities: gain market share, improve customer-service scores, increase operating efficiency, optimize costs and continue risk mitigation.

• Management expected stronger FY20 performance, citing anticipated industry growth and continued exploration of ASEAN opportunities.

• Digital initiatives, process automation and new products were positioned to support service improvements and efficiency gains; initiatives were at varying stages of implementation.