Central Depository Services (India) Ltd's Q3FY19 consolidated net profit declines 6.4% qoq to Rs28cr: In-line with Estimates

The company’s consolidated revenue in the quarter stood at Rs46cr, down 10.1% yoy and 13.1% qoq.

Jan 26, 2019 11:01 IST India Infoline Research Team

Central Depository Services (India) Ltd Q3FY19

Consolidated Results Q3FY19: (in Rs cr)

Q3FY19 QoQ (%)
Revenue 46.17 [13.1]
EBITDA 22.79 [30.6]
EBITDA Margin (%) 49.4 [1,245]
Net Profit (adjusted) 28.09 [6.4]
***EBITDA margin change is bps

Central Depository Services (India) Ltd's (CDSL) revenue in Q3FY19 declined 10.1% yoy and 13.1% qoq to Rs46cr. EBITDA came in at Rs23cr, down 27% yoy and 30.6% qoq. EBITDA margin contracted 1,148bps yoy and 1,245bps qoq to 49.37%. The company reported a net profit of Rs28cr, up 10.8% yoy and down 6.4% qoq. Net profit was in line with the estimates of Rs30cr, respectively.

Data entry and storage segment’s revenue declined 29.6% qoq to Rs8cr.
Depository activity segment’s revenue declined 8.7% qoq to Rs37cr.
Employee benefit expenses stood at 17.1% of revenue vs 15.8% qoq, weighing on the margins.
Other expenses stood at 27.2% of revenue vs 16% qoq impacting the profitability.
Tax rate for the quarter stood at 21.5% vs 25.3% qoq.

Technical View:

Central Depository Services (India) Ltd ended at Rs226.05, down Rs7, or 3%, from its previous close of Rs233.05 on the BSE. The scrip opened at Rs233 and touched a high and low of Rs233 and Rs221.25, respectively. A total of 8,79,418 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs2,435.37cr.

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