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Central Depository Services conducted a conference call on 02 May 2022 to discuss its financial results for the quarter ended March 2022. Nehal Vora, MD and CEO and Girish Amesara, CFO of the company addressed the call:
Highlights
The company has continued to make progress of its strategy of accelerating core operating income and providing ease of doing business to market participants.
The company has posted strong 65% growth in standalone profit.
The company has announced highest ever final dividend of Rs 15 per share.
The company has crossed the base of 6 crore demat accounts, while it had a market share of 70% of 8.97 crore overall demat accounts.
The number of active companies with the company has increased to 18268, registering a 11% growth in FY2022.
The value of securities held under custody of the company has surged 35% to over Rs 37 lakh crore end March 2022 over March 2021.
The company has posted strong 34% revenue growth and 51% profit growth in Q4FY2022.
CDSL Ventures has recorded 127% growth in new KRA creations to 1.5 crore in FY2022 from 65 lakh last year. The record fetch surged 125% to 3.38 crore from 1.5 crore. C-KYC processed jumped 143% to 32 from 13.
The company has added 175 companies taking the number of RTA companies to 840 companies from 665 companies.
GST processing has declined 11% to 2.33 crore records from 2.6 crore.
Income of CDSL Ventures has jumped 88% to Rs 134.93 crore from Rs 71.90 crore, while expenses increased 56% to Rs 50.9 crore from Rs 32.65 crore. PAT jumped 89% from Rs 51 crore to Rs 96.32 crore in FY2022.
The employee cost of the company has increased mainly driven by 9.5% increment given and low base on account of reversals of Rs 2.5 crore variable pay of earlier year in FY2021. Also, the company incurred additional expenses of Rs 6.5 crore on increment, promotions etc to employees added or exited in FY2022.
Technology and employee cost are major costs for the company.
As per the company only 7-8% of population have demat account, while technology would play a great role in the growth of demat accounts. More IPOs coming would also have positive impact on secondary market.
Insurance policy is shifting to electronic mode, but still its not compulsory. The company would stay invested on this side.
The company is technologically equipped to launch many products.
The revenues of the company were lower on sequential basis due to high number of IPOs in Q3FY2022, while IPO market was muted due to geopolitical tensions in Q4FY2022.
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