KFin Technologies (KFINTECH) Q4 23/24 earnings summary

Executive summary

• FY24 consolidated revenue rose 16.3% YoY to ₹8,375.33m; EBITDA increased 23.0% to ₹3,665.94m and PAT grew 25.7% to ₹2,460.48m.

• Growth spanned all operating segments except Global Business Services; international and other investor solutions grew 35.1% YoY and non-MF revenue reached 30.0% of total.

• Domestic mutual fund and issuer solutions retained leadership, while AIF, wealth, international and pension businesses expanded client wins and assets serviced.

Financial highlights

• Consolidated revenue from operations was ₹8,375.33m vs. ₹7,200.27m in FY23; other income rose to ₹246.51m from ₹174.94m.

• EBITDA reached ₹3,665.94m, up 23.0% YoY; EBITDA margin expanded 238 bps to 43.77%.

• PAT was ₹2,460.48m, up 25.7% YoY; PAT margin improved 219 bps to 29.38%; diluted EPS was ₹14.34, up 24.5%.

• Operating expenses rose 11.6% to ₹4,709.38m; employee expenses increased 10.45% to ₹3,196.64m, alongside annual pay hikes, higher staffing and WebileApps integration.

• Operating cash flow was ₹2,892.54m; reported FCFF was ₹1,982.76m and EBITDA-to-FCFF conversion was 54.1%.

Outlook and guidance

• Targeting non-domestic mutual fund businesses at 45%-50% of revenue within five years, from 30.0% in FY24.

• VAS revenue share targeted to reach 12%-15% over five years, from 6.0% in FY24, driven by product demand and cross-sell/up-sell.

• New international client wins are expected to begin contributing from FY25; regulatory approvals for Thailand and Singapore entities were in process.

• Priorities include expanding global fund administration, investing in technology, talent and sales, and sustaining profitable growth while consolidating domestic leadership.