Capitaline

Results 01-Nov-21

Analysis

Central Depository Services (India)

Sustains robust performance

Central Depository Services has reported 76% surge in consolidated net profit to Rs 85.92 crore for the quarter ended September 2021. The consolidated revenue of the company increased 64% to Rs 145.97 crore in Q2FY2022.

Operating margin (OPM) increased by 701 bps to 67.95%. As a result, the operating profit (OP) climbed up 82% to Rs 67.95 crore. Other income galloped 61% to Rs 19.18 crore. Depreciation moved up 18% to Rs 3.06 crore. PBT jumped 81% to Rs 115.31 crore in Q2FY2022.

The tax expenses were up by 94% to Rs 28.73 crore. The effective tax rate was flat at 25%. The PAT before MI gained 76% to Rs 86.06 crore. After accounting loss of Rs 0.14 crore in in Minority interest, the Net Profit, as a result, grew by 76% to Rs 85.92 crore.

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

Business performance Highlights

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

68 lakh demat accounts were opened in Q2FY22, highest ever quarterly addition, (Q2FY21-29 lakhs).

Value of Securities in Demat Custody (In crores) increased to 35.21 lakh crore end September 2021.

In the period ended September 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.

Management comments

Nehal Vora, MD & CEO said, “We are happy to present another quarter of our strong and robust business and financial performance. Our growth in the past six months is a representation of the successful execution of our vision to make every investor self-sufficient and independent.

The Indian capital markets also witnessed an unprecedent growth which was supported by participation of new investors in the markets, IPOs, etc. The said growth is also a result of the efforts of the regulators and every Market Infrastructure Institution that has ensured that every investor becomes Atmanirbhar and can operate from the comfort of their own homes. The ease of business and secured services focused on providing convenience to all investors remains the core reason of our growth. We are humbled by the faith shown in us in this expansion journey.

We will continue to drive our strategy and approach while delivering services that are primarily focused to be safe and dependable for all the market participants, with our core philosophy of good governance.”

Financial Performance H1FY2022

For half year ended September 2021, Sales of the company were up 70% to Rs 263.25 crore. OPM zoomed by 587 bps to 65.7%, thus, OP galloped 87% at Rs 172.94 crore. Other income declined 3% to Rs 31.69 crore. Depreciation declined 7% at Rs 4.70 crore. There was loss of Rs 0.52 crore from associates. PBT moved up 66% to Rs 199.40 crore.

The effective tax rate rose 438 bps to 24.7%. Thus, the PAT before MI gained 57% to Rs 150.06 crore. After accounting loss of Rs 0.26 crore in Minority interest, the Net Profit, as a result, grew by 58% to Rs 149.80 crore in H1FY2022.

Central Depository Services (India) : Consolidated Results
Particulars	2109 (3)	2009 (3)	Var %	2109 (6)	2009 (6)	Var %	2103 (12)	2003 (12)	Var %
Sales	145.97	89.21	64	263.25	154.47	70	343.72	225.11	53
OPM %	67.95	60.95		65.69	59.82		61.63	46.28
OP	99.19	54.37	82	172.94	92.41	87	211.83	104.19	103
Other Income	19.18	11.95	61	31.69	32.71	-3	56.92	59.15	-4
PBIDT	118.37	66.32	78	204.63	125.12	64	268.75	163.34	65
Interest	0.00	0.01	-100	0.01	0.01	0	0.02	0.03	-33
PBDT	118.37	66.31	79	204.62	125.11	64	268.73	163.31	65
Depreciation	3.06	2.60	18	4.70	5.06	-7	9.20	11.73	-22
PBT	115.31	63.71	81	199.92	120.04	67	259.53	151.58	71
Share of P&L from Associate	-0.52	0.00	-	-0.52	0.00	-	0.00	0.00	-
PBT before EO	114.79	63.71	80	199.40	120.04	66	259.53	151.58	71
EO	0.00	0.00	-	0.00	0.00	-	0.00	-15.14	-
PBT After EO	114.79	63.71	80	199.40	120.04	66	259.53	136.45	90
Tax	28.73	14.84	94	49.34	24.45	102	58.26	31.47	85
PAT before MI	86.06	48.87	76	150.06	95.59	57	201.27	104.97	92
MI and share of associates	0.14	0.12	17	0.26	0.68	-62	0.93	0.56	66
PAT	85.92	48.75	76	149.80	94.91	58	200.34	104.41	92
PPA	0.00	0.00	-	0.00	0.00	-	0.00	1.74	-
PAT after PPA	85.92	48.75	76	149.80	94.91	58	200.34	106.16	89
EPS*	32.9	18.7		28.7	18.2		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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