Kfin Technologies receives high-value IMS contract from LIC Pension Fund; stock jumps 7%

Shares of KFin Technologies on Thursday, October 19, jumped as much as 7 per cent, touching the day's high of Rs 481.8 on the BSE. The buying interest in the stock came after the company won a high-value Investment Management Solution (IMS) contract from LIC Pension Fund Limited.

At around 11:52 a.m., shares of KFin Technologies traded 1.67 per cent higher on the BSE at Rs 457.5 apiece. The market capitalisation of the company at around the same time stood at Rs 7,789.13 crore.

"KFin Technologies Limited (KFintech), a global leader in Fund administration solutions, is excited to announce the signing of a high-value multi-year IMS contract with LIC Pension Fund Limited (LICPFL)," the regulatory filing read.

As per the filing, KFin Technologies will design, create, and administer the investment management solution to provide enhanced customer service, security, and compliance for LICPFL.

KFin Technologies will announce its Q2 FY24 results on October 20, 2023.

KFin Technologies Q1 performance

KFin Technologies posted a net profit of Rs 43.4 crore for Q1 FY24, up 15.9 per cent year-on-year (YoY), led by a 7.6 per cent increase in revenue from operations to Rs 181.5 crore.

Non-domestic mutual fund revenue accounted for 29 per cent of overall revenue during the quarter. The RTA’s (registrar and transfer agent’s) EBITDA for the quarter was up 12.8 per cent at Rs 70.4 crore. EBITDA margin was 38.8 per cent compared with 37 per cent a year ago.

In terms of business highlights, KFin Technologies witnessed an overall average assets under management (AAUM) growth of 14.5 per cent YoY, outperforming the industry's growth rate of 14.2 per cent, and attained a market share of 31.3 per cent.

KFin Technologies share price: Past performance

So far in 2023, the stock has gained over 28 per cent against the headline index's rise of over 7 per cent. 

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