Highlights:

The performance of the company has been driven by strengthening role of the company in the financial ecosystem, providing services that are convenient and easy and retaining existing clients.

India has strengthened its overall participation in the Indian securities market as the overall number of registered investors was 9.6 crore unique client codes on the stock exchanges on 8 February 2022, showing 57% increase from the same time of the previous year.

The total number of Demat accounts across for the depositories in India stood at 8.4 crore end January 2022, while CDSL enjoys a 70% market share at 5.85 crore.

The company is harnessing the benefits of a digital innovation and the presence carved out across years especially in the Tier-II and Tier-III cities.

The company has invented and invested in business to build a truly diversified organization that performs across market regulations.

The number of new active beneficial owner account with CDSL has increased by 91 lakh in Q3FY2022 from 28 lakh in Q3FY2021 and 68 lakh in Q2FY2022.

The number of active companies was 17,748 end December 2021, up 11% from 15,992 companies end December 2020.

The value of securities and Demat custody increased 47% to Rs 37 lakh crore at CDSL end December 2021 from Rs 25 lakh crore end December 2020.

The company has seen a healthy 55% growth in the net profit, while consolidated income increased 58% in Q3FY2022.

CDSL Ventures (CVL) had a very healthy performance on the back of buoyant markets. KYC creation increased 160% to Rs 1.11 crore.

The KYC fetch in CVL increased by 165% to 2.51 crore. The cKYC business increased by 83% to 15.19 lakh records.

In terms of RTA companies, the company has about 802 companies registered end December 2021.

CVL had income from operations of Rs 99.35 crore in 9MFY2022 as against Rs 48.69 crore in 9MFY2021. The net profit increased to Rs 53.60 crore 9MFY2022 as against 29.33 crore in 9MFY2021.

CVL levies two charges, on KYC creation and one is on fetch. There has been pressure on the creation charges with the increase in volume but the fetch charges have more or less remained the same.

The company had 3.92 crore KYC records in CVL end December 2021.

The expenditures are coming through operation related expenditure, employee cost, technology costs and contribution to investor protection fund (IPF) which is basically regulatory cost. The company also has a cost on the SMS charges and other alerts that the company is supposed to send to the investors.

The regulatory cost is a function of the operating profit that the company achieves. Higher the operating income, charge towards the regulatory costs will also increase as it is directly proportionate to operating income. A specific 5% of operating income has to be contributed to IPF.

The transaction charge income is achieved at Rs 52.70 crore in Q3FY2022 as against Rs 30.95 crore in Q3FY2021, online data charges which is CVL's income is contributing Rs 33.62 crore compared to Rs 13.09 crore, IPO corporate action income has contributed Rs 23.41 crore compared to 6.95 crore and annual issuer charge income is contributing Rs 28.98 crore compared to Rs 21.69 crore. CAS statement charges is contributing Rs 4.42 crore compared to Rs 4.44 crore.

This covers almost 88% to 90% of operating income. Rest of the items are contributing less than 1% which is settlement charges, inter KRA charges, e-KYC, c-KYC, documents storage charge, account maintenance charges.

IPO market in January 2022 was not as active as it was in December quarter and the secondary markets were also weak, but the demat account addition continued to be robust at around 29-30 lakh. As per the company, anticipation of LIC IPO would have led to high demat account opening. The expectation of other large IPOs and increase of participation in the secondary market has also pushed up account opening. In mutual funds also, wherever people opt for the demat accounts is contributory factor.

The company has earned a pledge income of Rs 4.11 crore in Q3FY2022 and Rs 10.93 crore in 9MFY2022.

SMS charges is roughly Rs 2.2 crore in Q3FY2022 compared to Rs 66 lakh in Q3FY2021.

The e-insurance accounts remains voluntary. It's not yet made mandatory.

On the commodity repository, the company currently only have the agri warehousing receipts on electronic mode.

The company has an overall dividend policy about 60% of the operating profits gets distributed as dividends. There is no policy on interim dividend, while there is a policy on the total dividend.