KFin Technologies (KFINTECH) Q4 20/21 earnings summary

Executive summary

• FY21 consolidated revenue rose to INR 48,114 lakh from INR 44,987 lakh; a one-time tax charge drove a net loss of INR 6,451 lakh versus profit of INR 452 lakh in FY20.

• Operations maintained SLA adherence above 99% and delivered without disruption during the pandemic; digital channels and services expanded.

Financial highlights

• Consolidated PBT was INR 6,751 lakh versus INR 1,851 lakh; total expenses were INR 41,869 lakh versus INR 43,676 lakh.

• Total tax expense was INR 13,201 lakh, including a one-time charge related to the tax-law change disallowing goodwill depreciation; net loss was INR 6,451 lakh and EPS was INR -4.28.

• Operating cash flow increased to INR 20,391 lakh from INR 10,144 lakh; cash and cash equivalents closed at INR 2,293 lakh.

Outlook and guidance

• Business development priorities included AIF and corporate registry growth, further NPS client wins including a first State Government mandate, and growing ASEAN engagements.

• Digital initiatives launched included KboltGo, RWAP, eAGM, WhatsApp-based transactions and multilingual investor-app features.

• Management assessed COVID-19 effects as not material to FY21 statements, while noting actual effects could vary with the pandemic’s nature and duration.