Central Depository Services

OPM improves, one-off expense hits

Jan 27, 2020 07:01 IST capital market

Central Depository Services has reported 26% decline in consolidated net profit to Rs 20.81 crore for the quarter ended December 2019 on account of one-off expenses of Rs 10.56 crore relating to settlement of service tax matter of earlier years.

The consolidated revenue of the company increased 17% to Rs 54.11 crore in Q3FY2020. Operating margin (OPM) increased by 60 bps to 49.21%. As a result, the operating profit (OP) climbed up 19% to Rs 49.21 crore.

Other income declined 13% to Rs 14.38 crore. Depreciation moved up 17% to Rs 3.03 crore. PBT rose 5% to Rs 37.98 crore in Q3FY2020.

EO stood at Rs 10.56 crore in Q3FY2020, leading PBT to dip 24% to Rs 27.42 crore. The tax expenses were down by 25% to Rs 5.82 crore. The effective tax rate eased 31 bps to 21.23%. The PAT before MI fell 24% to Rs 21.60 crore. After accounting loss of Rs 0.79 crore in Minority interest, the Net Profit, as a result, declined by 26% to Rs 20.81 crore.

Financial Performance 9MFY2020

For Nine Months ended December 2019, Sales of the company were up 14% to Rs 165.17 crore. OPM dipped by 1098 bps to 44.7%. Thus, OP declined 9% at Rs 73.78 crore. Other income advanced 47% to Rs 46.10 crore. After accounting for depreciation (up 19% at Rs 8.70 crore), the PBT increased 6% to Rs 111.18 crore in 9MFY2020. After EO of Rs 10.56 crore PBT declined 4% to Rs 100.62 crore.

The effective tax rate declined 131 bps to 21.9%. The PAT before MI fell 3% to Rs 78.58 crore. After accounting loss of Rs 1.02 crore in Minority interest, the Net Profit declined by 3% to Rs 77.56 crore in 9MFY2020.

Notes

Based on the assessment order received during the quarter ended June 2019, the company had written back an amount of Rs 1.74 crore in respect of assessment year 2013-14 and the same was netted off from tax expense. Further, an amount of Rs 2.2345 crore received as interest on refund has been included in other income during the nine-months ended December 2019.

The company has opted for the Sabka Vishwas (legacy Dispute Resolution) scheme, 2019 for the settlement of service tax matter of earlier years. Accordingly, an amount of Rs 10.5609 crore has been recognized in the statement of profit and loss in the current quarter.

Central Depository Services: Consolidated Financial Results

 

Particulars 1912 (3) 1812 (3) Var % 1912 (9) 1812 (9) Var % 1903 (12) 1803 (12) Var %
Sales 54.11 46.10 17 165.17 145.31 14 196.25 187.69 5
OPM % 49.21 48.61 44.67 55.65 55.51 58.81
OP 26.63 22.41 19 73.78 80.87 -9 108.93 110.38 -1
Other Income 14.38 16.44 -13 46.10 31.45 47 49.19 37.99 29
PBDT 41.01 38.85 6 119.88 112.32 7 158.12 148.37 7
Depreciation 3.03 2.58 17 8.70 7.30 19 9.92 6.95 43
PBT before EO 37.98 36.27 5 111.18 105.02 6 148.20 141.42 5
EO 10.56 0.00 - 10.56 0.00 - 0.00 0.00 -
PBT After EO 27.42 36.27 -24 100.62 105.02 -4 148.20 141.42 5
Tax 5.82 7.81 -25 22.05 24.38 -10 33.38 37.78 -12
PAT before MI 21.60 28.46 -24 78.58 80.64 -3 114.82 103.64 11
MI 0.79 0.37 114 1.02 0.68 50 1.31 0.46 185
PAT 20.81 28.09 -26 77.56 79.96 -3 113.51 103.18 10
EPS* 11.1 10.8 10.9 10.2 10.9 9.9
* 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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