KFin Technologies (KFINTECH) Q2 24/25 earnings summary

Executive summary

• Achieved 34% year-over-year revenue growth and 18% sequential growth, with EBITDA up 35% and PAT up 46% year-over-year; strong performance across all business lines.

• International and other investor solutions revenue grew 44% year-over-year; value-added solutions revenue up 46% year-over-year, now comprising up to 7.9% of total revenue.

• Added significant new clients across domestic, international, and alternative investment segments, expanding market share in key areas.

• 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; half-year revenue was ₹5,180.36 million, up from ₹3,904.75 million year-over-year.

• EBITDA for Q2 FY25 was ₹1,265.4 million, up 35.1% year-over-year; margin at 45.1%.

• PAT for Q2 FY25 was ₹893.22 million, up 45.5% year-over-year; margin at 31.8%.

• Diluted EPS for Q2 FY25 was ₹5.16, up from ₹3.58 last year; basic EPS was ₹5.21.

• Cash & cash equivalents at period end: ₹4,239.1 million (consolidated); H1 FY25 net cash from operations was ₹1,339.27 million.

Outlook and guidance

• Guidance for EBITDA margin remains in the 40%-45% range, with continued focus on expanding client base, international growth, and technology innovation.

• Domestic mutual fund and issuer solutions expected to grow in the mid-teens sustainably, while international and AIF fund accounting to outpace this growth.

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