Capitaline

Results 08-Aug-22

Analysis

Computer Age Management Services

Market share stable, higher employee and other expense impacts bottomline

Computer Age Management Services has recorded moderate 2% growth in the net profit to Rs 64.78 crore in the quarter ended June 2022 (Q1FY2023). Net sales increased 17.63% to Rs 236.65 crore. Operating profit margin has declined from 46.17% to 41.36%, leading to moderate 5.36% rise in operating profit to Rs 97.87 crore. Employee cost increased from 35.98% to 39.41%. Other expenses rose from 17.84% to 19.23%. Other direct service cost rose from 9.53% to 11.30%.

Other income fell 1.77% to Rs 4.44 crore. PBIDT rose 5.03% to Rs 102.31 crore. Provision for interest fell 1.67% to Rs 1.77 crore.

PBDT rose 5.16% to Rs 100.54 crore. Provision for depreciation rose 28.34% to Rs 13.63 crore.

Profit before tax grew 2.26% to Rs 86.91 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 22.3 crore, compared to Rs 21.75 crore. Effective tax rate was 25.66% compared to 25.59%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 2.44% to Rs 64.78 crore.

Promoters’ stake was 23.74% end June 2022 compared to 30.96% end June 2021.

Business highlights:

Mutual Funds: CAMS saw a 2.6% increase in Equity QAAuM despite the headwinds. Overall QAAUM saw a marginal decline of 1.6%. CAMS share in key metrics (SIP registration and Net sales) also improved QoQ. Retained market leadership with 69% share.

Alternative Services: Continued high growth trajectory. CAMS WealthServ, the digital onboarding platform for this segment was well received by the market with 40+ signups since launch.

CAMS NPS: CAMS launched the industry first CRA platform on cloud in March 2022. eNPS is live and POP & corporate are in pilot phase. Within a short span of time, achieved 10.3% share in new eNPS sales and #2 CRA position in eNPS industry in Q1 FY’23

CAMSFinserv: Account aggregator platform recorded 10+ wins in the quarter taking overall tally to over 20 signups. CAMSfinserv mobile app has over 12K downloads and is the most downloaded AA app.

CAMSREP: PolicyGenie Deep Contact Tracing Solution, uniquely offered by CAMS Insurance Repository, assisted leading insurance companies in closing INR 31 Cr. of unclaimed benefits in Q1. CAMSRep`s Digital solutions and Insurance repository services have significantly improved overall policyholder experience by refining contact-ability and policy benefit continuity.

MFCentral: Solidifies CAMS’s role in the MF ecosystem by providing 360o range of services to investors and distributors.

myCAMS crossed 5.25 Mn user base. Largest MF only App in India

Commenting on the performance, Anuj Kumar, Managing Director said, “We maintained our strong focus on operational excellence for the long term with continued investments in technology and people. Despite the volatile market situation, individual investor confidence remained high with buoyant equity net inflows supported by predictable, strong SIP collections of nearly Rs.7000 Crore every month. New SIPs clocking 10 lakh plus monthly registrations is another key trend pointing to mutual fund as the preferred route for long term investors. Our share in AuM is at a robust 69 % serving ten of the top fifteen mutual funds. Our equity AuM, despite the headwinds in the markets, expanded by ~2.6% quarter on quarter while our overall AuM saw a marginal decline of ~1.6%.

Our technology enhancements were focused on combining modern APIs, 360o digital solutions and platform capability for solving industry problems around eKYC & AML and to enable superior customer experience. Customer onboarding platform Wealthserv for Alternatives Industry is seeing rapid adoption with over forty enterprise signups. MF Central, the universal MF platform is expanding with new feature sets for investors and APIs for intermediaries to manage their operations and grow their business.

The Account Aggregator business, CAMSfinserv, is seeing active momentum in areas of new client acquisition and onboarding (on the platform) wins of the previous quarter, for live datapulls. Lending companies and broking houses are seeing compelling value in the platform for their digital transformation strategy.

We completed the first full quarter for the NPS CRA business launched with eNPS module. We have built visibility and awareness on the back of digital marketing and registered ~8000 subscribers in the quarter. CAMS NPS has now over 10% market share of the new eNPS sales in the industry.

As the leading payments provider in the Mutual Funds arena, CAMSPay continues to expand its offering to our clients with UPI Autopay, an industry-first launch in partnership with NPCI.”

Financial Performance FY2022

Net sales have increased 28.94% to Rs 909.67 crore in FY2022. Operating profit margin has jumped from 41.96% to 46.62%, leading to 43.29% rise in operating profit to Rs 424.13 crore in FY2022. Employee cost decreased from 37.19% to 35.37%. Other expenses fell from 20.85% to 18.01%. Other direct service cost fell from 11.15% to 10.22%.

Other income fell 41.97% to Rs 17.27 crore. PBIDT rose 35.50% to Rs 441.4 crore. Provision for interest fell 9.75% to Rs 7.13 crore. Loan funds rose to Rs 19.57 crore in FY2022 from Rs 14.61 crore in FY2021. Sundry debtors were lower at Rs 25.55 crore in FY2022 compared to Rs 28.99 crore in FY2021. Cash and bank balance declined from Rs 180.26 crore in FY2021 to Rs 150.81 crore in FY2022. Investments rose to Rs 316.95 crore in FY2022 from Rs 236.07 crore in FY2021.

PBDT rose 36.62% to Rs 434.27 crore. Provision for depreciation rose 18.91% to Rs 51.62 crore. Fixed assets increased to Rs 180.66 crore in FY2022 from Rs 150.42 crore in FY2021. Intangible assets stood at Rs 133.60 crore.

Profit before tax grew 39.42% to Rs 382.65 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 95.7 crore, compared to Rs 69.16 crore. Effective tax rate was 25.01% compared to 25.20%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 39.78% to Rs 286.95 crore.

Computer Age Management Services : Consolidated Results
Particulars	2206 (3)	2106 (3)	Var.(%)	2203 (12)	2103 (12)	Var %
Net Sales	236.65	201.18	18%	909.67	705.50	29
OPM (%)	41.36	46.17	-481	46.62	41.96
OP	97.87	92.89	5%	424.13	296.00	43
Other Inc.	4.44	4.52	-2%	17.27	29.76	-42
PBIDT	102.31	97.41	5%	441.40	325.76	35
Interest	1.77	1.80	-2%	7.13	7.90	-10
PBDT	100.54	95.61	5%	434.27	317.86	37
Depreciation	13.63	10.62	28%	51.62	43.41	19
PBT	86.91	84.99	2%	382.65	274.45	39
Share of Profit/(Loss) from Associates	0.00	0.00	-	0.00	0.00	-
PBT before EO	86.91	84.99	2%	382.65	274.45	39
EO Income	0.00	0.00	-	0.00	0.00	-
PBT after EO	86.91	84.99	2%	382.65	274.45	39
Taxation	22.30	21.75	3%	95.70	69.16	38
PAT	64.61	63.24	2%	286.95	205.29	40
Minority Interest (MI)	-0.17	0.00	-	0.00	0.00	-
Net profit	64.78	63.24	2%	286.95	205.29	40
EPS (Rs)*	53.0	51.7		58.6	42.0
* Annualized on current equity of Rs 48.93 crore. Face Value: Rs 10 per share, Figures in Rs crore
Source: Capitaline Corporate Database

Previous News

Computer Age Management Services consolidated net profit rises 37.03% in the December 2021 quarter
( Results - Announcements 10-Feb-22 15:09 )

Computer Age Management Services
( Analyst Meet / AGM - Conference Call 08-Aug-22 20:06 )

CAMS announces resignation of Head - New Businesses
( Corporate News - 10-Apr-23 10:11 )

CAMS fixes record date for interim dividend of Rs 7.60
( Market Beat - Reports 11-Feb-21 17:12 )

CAMS announces appointment of senior management personnel
( Corporate News - 29-Apr-24 15:04 )

CAMS partners with Google Cloud to launch next-gen platform
( Corporate News - 01-Jul-24 19:15 )

Computer Age Management Services schedules board meeting
( Corporate News - 02-Jul-24 09:44 )

Computer Age Management Services to hold board meeting
( Corporate News - 05-Jul-23 10:26 )

CAMS IPO ends with bumper subscription
( IPO Centre - IPO News 24-Sep-20 11:32 )

CAMS fixes record date for interim dividend
( Market Beat - Reports 15-Jul-21 18:28 )

Computer Age Management Services consolidated net profit rises 48.23% in the September 2021 quarter
( Results - Announcements 14-Nov-21 17:14 )