KFin Tech shares surges 5% as earnings increase by 28% YoY

23 Oct 2023 , 01:27 PM

KFin Technologies’ shares increased 5% to reach the day’s high of Rs 484 on October 23 following the company’s profit-after-tax (PAT) increase of 28% YoY to Rs 61.4 crore in the fiscal year 2023–24 quarter that ended in September (Q2FY24). 

This midcap company’s stock has increased 30% over the last three months, compared to the Sensex benchmark’s 2% decrease.

The business’s operating revenue increased 16% year over year to Rs 209 crore in Q2FY24 from Rs 180 crore in Q2FY23. Under issuer solutions, KFin Tech added 4 million investor folios and 172 new corporate clients.

Apart from that, the business’s earnings before interest, tax, depreciation, and amortisation (Ebitda) climbed by 32% year over year to Rs 93 crore, and its Ebitda margin grew by 540 basis points (bps) year over year to 44.8% in Q2FY24.

‘We anticipate strong revenue growth in the future. We anticipate that our margin band will fall between 42 and 45%. Managing director and CEO of KFin Tech Sreekanth Nadella stated on CNBC-TV18, ‘We will use cash to fund the company’s inorganic growth going forward since we haven’t paid any dividends.’

KFin Tech is a technology-driven platform for financial services that offers a wide range of services and solutions to the Indian capital markets ecosystem, including corporate issuers and asset managers for various asset classes. The business provides wealth managers, pension funds, mutual funds, and alternative investment funds with asset management services.

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