Capitaline

Results 02-May-22

Analysis

Central Depository Services (India)

Revenue growth moderates in Q4FY2022

Central Depository Services has reported 50% growth in consolidated net profit to Rs 77.65 crore for the quarter ended March 2022. The consolidated revenue of the company increased 32% to Rs 136.56 crore in Q4FY2022. Operating margin (OPM) increased by 461 bps to 66.09%. As a result, the operating profit (OP) climbed up 42% to Rs 66.09 crore. Other income surged 115% to Rs 15.41 crore. Depreciation moved up 121% to Rs 3.61 crore. PBT increased 48% to Rs 102.05 crore in Q4FY2022. The tax expenses were up by 39% to Rs 23.94 crore. The effective tax rate declined -160 bps to 23.46%. The PAT before MI and Share in Profit of Associates gained 51% to Rs 78.11 crore.

After accounting loss of Rs 0.46 crore in in Minority interest, the Net Profit grew by 50% to Rs 77.65 crore.

Book value of the company stood at Rs 104.6 per share at end March 2022.

The Board also recommended dividend for the FY 21-22 of Rs 15/- per equity share

Business performance Highlights

CDSL became the first depository to register 6 crore demat accounts in February 2022.

74 lakh demat accounts were opened in Q4 FY21-22, as compared to 45 lakhs in Q4 FY20-21.

Value of Securities in Demat Custody (in crores) increased to Rs. 37.17 lakh crore as on March 31, 2022.

In the period ended March 31, 2022, your 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 saw the year-on-year growth momentum continuing in Q4 with improved earnings quality as compared to the Q4 of the previous financial year. During the quarter, we crossed another milestone of 6 crore demat account. The Board has declared a final dividend of Rs 15/- per equity share for FY22 (subject to the approval of the shareholders), the highest ever in the history of this company. Throughout 2021-22, CDSL has continued to its strong investor focused approach while maintaining a steady effort towards innovation. As a result, we have delivered strong organic growth and a healthy margin. We are focussed on building a business that is both profitable and sustainable. Our ability to innovate, build on new technologies and to deliver differentiated experiences continues to drive strong value for our stakeholders and investors.

CDSL’s roadmap with an established direction for the forthcoming years is largely focused on innovating and providing services that empower all the stakeholders, especially the investor. Our objective for the coming years, is to make our technology trustworthy and simple for every investor, making them an atmanirbhar niveshak or a self-sufficient and independent investor."

Financial Performance FY2022

For the year ended March 2022, Sales of the company were up 60% to Rs 551.33 crore. OPM jumped by 466 bps to 66.3%, thus, OP declined 73% at Rs 365.45 crore. Other income rose 4% to Rs 58.97 crore. After accounting for depreciation (up 25% at Rs 11.46 crore), the PBT increased 59% to Rs 412.95 crore in FY2022.

The effective tax rate rose 205 bps to 24.5%. Thus, the PAT before MI gained 55% to Rs 311.81 crore. After accounting loss of Rs 0.63 crore in Minority interest, the Net Profit, as a result, grew by 55% to Rs 311.18 crore in FY2022.

Central Depository Services (India) : Consolidated Results
Particulars	2203 (3)	2103 (3)	Var %	2203 (12)	2103 (12)	Var %
Sales	136.56	103.09	32	551.33	343.72	60
OPM %	66.09	61.48		66.29	61.63
OP	90.25	63.38	42	365.45	211.82	73
Other Income	15.41	7.17	115	58.97	56.92	4
PBIDT	105.66	70.55	50	424.42	268.74	58
Interest	0.00	0.01	-	0.01	0.02	-50
PBDT	105.66	70.54	50	424.41	268.72	58
Depreciation	3.61	1.63	121	11.46	9.20	25
PBT	102.05	68.91	48	412.95	259.52	59
Share of P&L from Associate	0.00	0.00	-	0.00	0.00	-
PBT before EO	102.05	68.91	48	412.95	259.52	59
EO	0.00	0.00	-	0.00	0.00	-
PBT After EO	102.05	68.91	48	412.95	259.52	59
Tax	23.94	17.27	39	101.14	58.25	74
PAT before MI	78.11	51.64	51	311.81	201.27	55
MI and share of associates	0.46	-0.10	PL	0.63	0.93	-32
PAT	77.65	51.74	50	311.18	200.34	55
EPS*	29.7	19.8		29.8	19.2
* 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 PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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