Central Depository Services

Operating profit rises 16%, crosses 200 lakhs Beneficial Owner accounts

May 18, 2020 10:05 IST capital market

Central Depository Services has reported15% decline in consolidated net profit to Rs 28.60 crore for the quarter ended March 2020. The consolidated revenue of the company increased 18% to Rs 59.88 crore in Q4FY2020. Operating margin (OPM) eased by 70 bps to 54.39%. The operating profit (OP) climbed up 16% to Rs 54.39 crore.

Other income declined 26% to Rs 13.09 crore. Depreciation moved up 16% to Rs 3.03 crore. Thus, PBT fell 1% to Rs 42.63 crore in Q4FY2020. After one of expense item of Rs 6.81 crore in Q4FY2020, PBT dipped 17% to Rs 35.82 crore. CDSL Group has also contributed Rs 6.81 crore as a support towards the Governments initiatives against COVID-19 in the quarter ended March 2020.

The tax expenses declined by15% to Rs 7.68 crore. An effective tax rate rose 62 bps to 21.45%. The PAT before MI and Share in Profit of Associates declined18% to Rs 28.14 crore. After accounting for profit of Rs0.46 crore in in minority interest, the Net Profit, as a result, declined15% to Rs 28.60 crore.

Business Highlights

During the year under review, 48.32 Lakh Beneficial Owner (BO) accounts were added, taking the total number of such accounts to 271.67 Lakhs with the net BO accounts at 211.81 Lakhs as on 31 March 2020, indicating a strong growth of 23%, making it the first depository to cross the 200 lakhs milestone.

As on 31 March 2020 CDSL has 599 Depository Participants offering services from over 20,000 locations across the country.

The company through its subsidiary CVL held over 2.1 crore (21 million) capital market investor records under CVL, the first and largest KYC Registration Agency (KRA) in the country.

CDSL has experienced a substantial growth in the number of companies / Issuers admitted in demat from 541 in FY 1999-00 to 14,018 in FY 2019-20, a growth of 18% CAGR.

During the last 12 months, the volume of securities under custody has increased by 26%.

CDSL, CVL and other entities are allowed to undertake e-KYC Aadhaar Authentication service of UIDAI (Unique Identification Authority of India) in securities Market. This initiative will help to achieve the objective of keeping a check on Money laundering, while also prove to be a new income opportunity for all permitted entities.

CDSL became the first and only depository to have received the approval from SEBI to commence operations at GIFT City. CDSL inaugurated its IFSC Branch at the GIFT City, Gandhinagar in Gujarat in January 2020.

Financial Performance FY2020

For the year ended March 2020, Sales of the company were up 15% to Rs 225.06 crore. OPM dipped by825 bps to 47.3%, thus, OP declined2% at Rs 106.36 crore. Other income advanced 20% to Rs 59.19 crore. After accounting for depreciation (up 18% at Rs 11.73 crore), the PBT increased 4% to Rs 153.82 crore in FY2020. After EO of Rs 17.37 crore PBT declined8% to Rs 136.45 crore. The effective tax rate declined73 bps to 21.8%. The PAT before MI declined7% to Rs 106.72 crore. After accounting for loss of Rs 0.56 crore in minority interest, the Net Profit declined6% to Rs 106.16 crore in FY2020.

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 ended December 2019.

?Central Depository Services (India) : Consolidated Results

 

Particulars 2003 (3) 1903 (3) Var % 2003 (12) 1903 (12) Var %
Sales 59.88 50.95 18 225.06 196.25 15
OPM % 54.39 55.09 47.26 55.50 -15
OP 32.57 28.07 16 106.36 108.93 -2
Other Income 13.09 17.74 -26 59.19 49.19 20
PBDT 45.67 45.81 0 165.55 158.12 5
Depreciation 3.03 2.62 16 11.73 9.92 18
PBT before EO 42.63 43.19 -1 153.82 148.21 4
EO 6.81 0.00 - 17.37 0.00 -
PBT After EO 35.82 43.19 -17 136.45 148.21 -8
Tax 7.68 9.00 -15 29.73 33.38 -11
PAT before MI 28.14 34.20 -18 106.72 114.83 -7
MI and share of associates -0.46 0.63 -172 0.56 1.31 -57
PAT 28.60 33.56 -15 106.16 113.51 -6
EPS* 13.0 12.8 15.3 10.9
* 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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