Capitaline

Results 01-Aug-21

Analysis

Central Depository Services (India)

Continues strong performance

Central Depository Services (India) has continued to post strong growth in the net profit at 38% to Rs 63.87 crore in the quarter ended June 2021 (Q1FY2022). Sales (including other operating income) of has surged 80% to Rs 117.28 crore.

Sales of Depository Activity segment has gone up 70% to Rs 88.68 crore (accounting for 75.61% of total sales). Sales of Data processing Services segment has gone up 118% to Rs 28.12 crore (accounting for 23.98% of total sales). Sales of Others segment rose 168% to Rs 0.49 crore (accounting for 0.42% of total sales). Inter-segment sales was nil against Rs 0.01 crore.

Profit before interest, tax and other unallocable items (PBIT) have jumped 102% to Rs 72.09 crore. PBIT of Depository Activity segment increased 90% to Rs 56.39 crore (accounting for 78.23% of total PBIT). PBIT of Data processing Services segment moved up 140% to Rs 16.68 crore (accounting for 23.14% of total PBIT). PBIT of Others segment was loss of Rs -0.98 crore (accounting for -1.37% of total PBIT).

Operating profit margin has jumped from 58.32% to 62.86%, leading to 93.64% rise in operating profit to Rs 73.72 crore. Employee cost decreased from 15.58% to 10.22%. Other expenses rose from 26.10% to 26.91%. Other direct service cost fell from 6.19% to 4.40%.

Other income fell 40% to Rs 12.51 crore. Provision for interest were nil. Provision for depreciation fell 33% to Rs 1.64 crore.

Profit before tax grew 50% to Rs 84.59 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 20.6 crore, compared to Rs 9.61 crore. Effective tax rate was 24.35% compared to 17.06%.

Minority interest decreased 79% to Rs 0.12 crore. Net profit attributable to owners of the company increased 38% to Rs 63.87 crore.

Promoters’ stake was 20.00% as of 30 June 2021, compared to 20.00% as of 30 June 2020.

Book value of the company stood at Rs 80 per share at end June 2021.

Business Highlights

CDSL became the first depository to register 4 crore demat accounts in July 2021.

In the quarter ended June 2021, the company through its subsidiary CVL continued to generate capital market investor records under CVL, and being the first and largest KYC Registration Agency (KRA) in the country.

Nehal Vora, MD & CEO said, “Our company has continued to move forward and we are happy to report a strong quarterly financial and business performance during the first quarter of the financial year 2021-22.

The capital market continues to witness growth which is primarily led by the increased participation of the investors and market participation through a robust eco-system of the Market Infrastructure Institutions under the able vision and leadership of SEBI. We are humbled to be part of this expansion journey.

In a year that saw restriction due to the pandemic, CDSL continued to remain committed to our vision – to make every investor self-sufficient and independent (Atmanirbbhar).

The easy, accessible and secured digital services contributed towards obtaining this objective and also embarks us with a responsibility to focus more on a fair, transparent, secure and sustainable platform and good governance.

We will continue to drive this focused approach keeping the preference of the regulators and the market participants at the core.”

Financial Performance FY2021

For the year ended March 2021, Sales of the company were up 53% to Rs 343.72 crore. OPM jumped to 61.6% in FY2021 from 46.3% in FY2020, thus, OP jumped 103% at Rs 213.55 crore. Other income declined 4% to Rs 56.92 crore. After accounting for depreciation (down 22% at Rs 9.20 crore), the PBT increased 71% to Rs 269.53 crore in FY2021. After nil EO in Q4FY2021 compared with EO expense of Rs 15.14 crore in Q4FY2020, PBT jumped 90% to Rs 259.53 crore.

The effective tax rate eased to 22.4% from 23.1%. Thus, the PAT before MI gained 92% to Rs 201.27 crore. After accounting loss of Rs 0.93 crore in Minority interest, the Net Profit grew by 89% to Rs 200.34 crore in FY2021.

Central Depository Services (India) : Consolidated Results
Particulars	2106 (3)	2006 (3)	Var %	2103 (12)	2003 (12)	Var %
Sales	117.28	65.28	80	343.72	225.11	53
OPM %	62.86	58.32		61.63	46.28
OP	73.72	38.07	94	211.83	104.19	103
Other Income	12.51	20.73	-40	56.92	59.15	-4
PBIDT	86.23	58.80	47	268.75	163.34	65
Interest	0.00	0.01	-100	0.02	0.03	-33
PBDT	86.23	58.79	47	268.73	163.31	65
Depreciation	1.64	2.46	-33	9.20	11.73	-22
PBT	84.59	56.33	50	259.53	151.58	71
Share of P&L from Associate	0.00	0.00	-	0.00	0.00	-
PBT before EO	84.59	56.33	50	259.53	151.58	71
EO	0.00	0.00	-	0.00	-15.14	-
PBT After EO	84.59	56.33	50	259.53	136.45	90
Tax	20.60	9.61	114	58.26	31.47	85
PAT before MI	63.99	46.72	37	201.27	104.97	92
MI and share of associates	0.12	0.56	-79	0.93	0.56	66
PAT	63.87	46.16	38	200.34	104.41	92
PPA	0.00	0.00	-	0.00	1.74	-100
PAT after PPA	63.87	46.16	38	200.34	106.16	89
EPS*	24.4	17.7		19.2	11.3
* Annualized on current equity of Rs 104.5 crore. Face Value: Rs 10 per share, Figures in Rs crore, EPS is calculated after excluding EO and relevant tax
Source: Capitaline Corporate Database

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