Analyst Meet / AGM     06-May-22
Conference Call
Computer Age Management Services
Expects to maintain margins above 40% in a normal year
Computer Age Management Services conducted conference call on 6 May 2022 to discuss its financial results for the quarter ended March 2022. Anuj Kumar, MD of the company addressed the call:

Highlights:

The company witnessed strong year in FY22 compared with lean performance in FY21. The company has recorded healthy financial and operating performance with digital properties strengthening.

Among the major developments during Q4FY2022, CAMS won the RTA Mandate from Zerodha Asset Management (Zerodha) for their proposed mutual fund.

The company strengthened its value proposition in the Alternative Services industry with acquisition of majority 51% stake in Fintech platform Fintuple Technologies.

The Account Aggregator platform is live with 2 clients in Q4 FY'22. TSP and AA together creating a compelling proposition - 10 new wins in Q4. The company is witnessing increased volumes, while major players are yet to join platform.

The company launches industry first CRA platform on cloud in March 2022. Within a short span of time achieved 4.1% share in eNPS registrations for April 2022. The company has 2 CRA position in eNPS industry end April 2022.

CAMSRep launches deep contact tracing to track the untraceable policyholders. This technology assists insurance companies. in addressing their unclaimed amounts. 5 Large private insurers subscribed to the solution.

CAMSPay launched UPI autopay and Insta NACH/SIP - Industry first initiatives uniquely designed for the MF industry.

The company registered industry best growth in high yielding equity segment. CAMS equity assets grew by 3.37 Lakh crore, 183% higher than rest of industry's increase in the same period. This led to increase in equity market share from 62.5% to 65%.

The company had a 70% market share in overall gross sales for the year with equity (includes hybrid) at 64% and debt at 77%.

CAMS funds also continued to dominate the NFO market by garnering 70% of the equity NFO inflow in FY22.

The company registered 158 lakh new SIPs in FY22 as against 72.8 lakh in FY21, 117% increase from the previous year while rest of industry grew by 58% in the same period. The share in SIP volume increased from 52% to 59% in FY22.

myCAMS is largest mobile app in the Mutual Fund arena with 5 million registered users. Over 11 lakh investors were added to myCAMS, 26% higher than FY21. 32% of digital transactions across CAMS serviced funds are via myCAMS.

On client base, the top 5 AMCs, 10 of Top 15 AMCs, 4 out of Top 5 AMCs based on equity assets are clients of the company.

The company has exhibited healthy growth in overall transaction volumes and new SIP registrations rising to new heights in FY22. The transaction volume surged 29% to 41.59 crore in FY2022.

Transaction volume up 4% qoq and 34% yoy to 11.53 crore in Q4FY2022.

The digital properties continued to scale up to new highs, which serviced an aggregate AuM of Rs 7.9 lakh crore.

MFCentral, a unified investor portal developed jointly by CAMS and the other RTA, went live in September 2021. Mobile app available in both Android and iOS with over 40K downloads till date since launched. App is rated above 4 in both the stores. Over 1.92 lakhs registration, 2 Lakh NCTs, 92k CAS download were recorded with an average daily Log ins of 7500+. Financial transactions for investors to go live in Q1 FY23.

The company cemented its position as the market leader in the domestic AIF services market crossing 1.4 lakh crore. The company recorded 15 New wins in the AIF / PMS space in Q4FY22. Over 30 Funds have signed up for AIF/PMS digital onboarding with either CAMS or Fintuple. The company has an ambitious target to take this count to over 100 within the next 12 months.

The company has forayed into offshore fund services with the operationalization of branch in GIFT City with 4 clients.

The company has recorded healthy growth in top line with growth across all lines. Asset based revenues reflects mutual funds AUM growth.

Non-MF segment growing well. New offering coming in. NPS business launched in March 2022 is showing traction and will have contribution in H2FY2022.

The mutual fund revenues increased 21% to Rs 217 crore, driven by asset based revenues rising 19% to Rs 181 crore non-asset based revenues rising 30% to Rs 36 crore. the non mutual fund revenues also surged 32% to Rs 25.54 crore in Q4FY2022 with contribution from all verticals growing.

The company has exhibited some improvement in yield driven by increase in the share of equity AUM.

The company expects to maintain margins above 40% in good year, while margins would be at 35-40% if there is no growth in mutual fund industry AUM in a bad year.

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