The small-cap stock company engaged in providing technology-driven financial services jumped up to 13 percent on Friday after the announcement of its Q3 results with a 35 percent rise in net profits year on year.
Price Action
With a market capitalization of Rs 20,464.62 crore, KFin Technologies Ltd rose 13 percent in Friday’s trading session and made a high of Rs 1,124.95 per share compared to its previous closing price of Rs 1,104.05 per share. The stock reiterated from its day’s high and was trading at Rs 1,191.2 which is 8 percent higher than the previous closing price.
What Happened
KFin Technologies Ltd stock surged after the company reported its Q3FY24-25 results. Its revenue from operations grew by 32.6 percent year on year from Rs. 218.7 crore to Rs. 290 crore in Q3FY25 and it grew by percent QoQ from Rs 280.4 crore in Q2FY25.
The company’s net profit rose by 34.7 percent year on year from Rs 66.8 crores to Rs 90 crores in Q3FY25. As for QoQ growth, the company grew by 0.95 percent from Rs 89.32 crores in Q2FY25.
Management Commentary
Sreekanth Nadella, the Managing Director and CEO of KFin Technologies said “Our focus on consistent growth and profitability has led to yet another quarter of resilient performance, aided by new client wins internationally and domestically, across our diversified business segments. This is a milestone quarter for KFintech, as we took a giant step in our international journey by joining as the ninth global partner to BlackRock’s Aladdin Provider network. This will enable us to strengthen our differentiated fund administration and accounting services to global large asset managers. Our thrust will continue to design world class innovative solutions for our clients and deliver service excellence, leveraging unconventional technology stack and focused business development efforts.”
About the Company
KFin Technologies Ltd offers a range of services to asset managers and corporate issuers across various asset classes in India. Additionally, it also provides transaction processing solutions for private retirement and mutual funds schemes in the Philippines, Hong Kong, and Malaysia.
This company is the largest investor solutions provider to Indian mutual funds. The Issuer Solutions segment of the company has a 48.1 percent market share while their International and other investor solutions segment has a 36.7 percent market share. They have a 32.6 percent market share in the AUM segment.
Segment Revenue
In the Domestic mutual fund investor solutions segment, the revenue grew 37.4 percent year on year from Rs 151.5 crore in Q3FY24 to Rs 208.2 crore in Q3FY25. This was accompanied by a 46.25 percent year-on-year growth in profits before interest and tax (PBIT) from Rs 88 crore in Q3FY24 to Rs 128.7 crore in Q3FY25.
In the Issuer solutions segment, the revenue grew 17 percent year on year from Rs 37.5 crore in Q3FY24 to Rs 43.9 crore in Q3FY25. This was accompanied by a 24.7 percent year-on-year growth in profits before interest and tax (PBIT) from Rs 21 crore in Q3FY24 to Rs 26.2 crore in Q3FY25.
In the International and other investor solutions segment, the revenue grew 52.5 percent year on year from Rs 21.5 crore in Q3FY24 to Rs 32.8 crore in Q3FY25. The segment’s profits before interest and tax (PBIT) stood at Rs 4.7 crore in Q3FY24 compared to a loss of Rs 0.6 crore in Q3FY24.
In the Global business services segment, the revenue fell by 38.75 percent year on year from Rs 8 crore in Q3FY24 to Rs 4.9 crore in Q3FY25. This was accompanied by a 57.7 percent year-on-year fall in profits before interest and tax (PBIT) from Rs 4.5 crore in Q3FY24 to Rs 1.9 crore in Q3FY25.
Written by Shwetha Sairam
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