Central Depository Services (India) Limited — Q1 FY24
CDSL reported a strong Q1 FY24 with consolidated revenue up 19% YoY to INR 174 crore and net profit up 28% YoY to INR 74 crore, driven by buoyant capital markets and a 29% YoY i...
bullish
medium
✓ Verified against BSE filing
Claim Ledger
Did management answer the analysts?
Every material analyst question, graded on whether management actually answered it — with the verbatim exchange and quantitative claims checked against filed numbers.
59%Questions answered3Evaded / deflected11Questions auditedContradictedNumbers vs filing
Partial answer
High priority
Reason for jump in Annual Issuer Charges and folio count.
Asked by Swarnabha Mukherjee, B&K Securities
Management explained the reason but refused to provide the folio number requested.
no number givendeclined to share folio count
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Question
if you could, you know, highlight the reason for the jump in the Annual Issuer Charges. Was, was there any particular, you know, thing that drove maybe the increase in number of policies which would have, sorry, number of folios that you have, which, which would have resulted in this? Also, if you could share the number of folios which you, which is there for billing the Annual Issuer Charges for this year.
Nehal Vora, MD and CEO
the number of folios have increased, in terms of the number of Demat accounts also increase, which has happened, and that has kind of led to a consequential increase in number of folios registered with CDSL, as the primary reason for the increase in the Annual Issuer Charges which you've charged the company. Hence that revenue has grown. We don't share the folios in the public domain.
Answered
Medium priority
Whether folio increase is one-off due to LIC IPO or steady state.
Asked by Swarnabha Mukherjee, B&K Securities
Management directly answered that it's a combination of factors, not a one-off.
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Question
is it something like, say, for example, last year there was the LIC IPO, which brought a lot of new investors to the market. Is it kind of factor of that, or is it a steady state thing that you were seeing leading to this increase?
Nehal Vora, MD and CEO
it's a combination. See, with the buoyant market conditions, the participation has grown overall. Therefore, the secondary market participation has also grown... Also because of buoyant market conditions, more, there are also the IPOs which are hitting the market. It's a combination of both these factors.
Declined
High priority
Ballpark number of folios to understand issuer charges evolution.
Asked by Swarnabha Mukherjee, B&K Securities
Management refused to provide even a ballpark figure.
no number givendeferred to public domain
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Question
if you can give us some ballpark, that would also help us in understanding how this overall, you know, issuer charges are evolving. We request some ballpark number.
Nehal Vora, MD and CEO
Typically, we don't give the folios. I just check from the regulatory standpoint, but as of now, we don't do that. In case if we do that, then we'll put it out on our public domain.
Partial answer
High priority
Reason for degrowth in subsidiary KYC Fetch business and pricing pressure.
Asked by Prakash Kapadia, Anived Portfolio Managers Private Limited
Management attributed degrowth to muted months but did not provide revenue breakdown or quantify pricing impact.
no breakdown givendenied pricing pressure without detail
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Question
if I look at our subsidiary KYC Fetch business, you know, five quarters in a row, subsidiary revenues have degrown. You know, can you give us some understanding how much of revenues is from new folio creation? How much is on the fetch side? Is there some pricing related pressure which is, you know, causing this degrowth to continue?
Nehal Vora, MD and CEO and Sunil Alvares, MD and CEO CDSL Ventures
the extent of degrowth, if you see the quarters, June, in the June ended, April, May quarters were kind of muted. It's only the June quarter where there was basically buoyancy seen, and therefore, that will have a lag effect on CVL's income. ... Not really, I don't think.
Answered
Medium priority
Breakdown of other income: mark-to-market and capital gains.
Asked by Prakash Kapadia, Anived Portfolio Managers Private Limited
CFO provided the mark-to-market figure directly.
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Question
on the total other income of INR 24 crore, how much is the mark-to-market gains on debt portfolio and how much is capital gains, if you have that figure ready?
Girish Amesara, CFO
Mark-to-market, gain is INR 13.36 crore in total INR 20 crore, INR 24 crore income.
Answered
Medium priority
Revenue of e-voting and consolidated e-CAS for the quarter.
Asked by Prakash Kapadia, Anived Portfolio Managers Private Limited
CFO provided the exact revenue figures.
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Question
if you could share the revenue of e-voting and consolidated e-CAS for the quarter.
Girish Amesara, CFO
e-voting, we have achieved at INR 3.40 crore and, cash, e-CAS, we have achieved at INR 8 crore.
Partial answer
High priority
Why Annual Issuer Charges growth exceeds retail shareholding growth.
Asked by Amit Chandra, HDFC Securities
Management gave a conceptual explanation but did not quantify the discrepancy.
no specific numbers given
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Question
Quarter one, FY24 numbers are much higher than what the actual retail shareholding has increased. Is there any other thing that we need to know in the Annual Charges that is getting included here?
Nehal Vora, MD and CEO
the way the charges are formulated is that there is a ceiling, and if the folio increases beyond a certain limit, and it's portfolio-based charges. The holding in some of the top companies has grown higher than overall increase.
Evasive
Medium priority
Adoption of e-voting and growth potential.
Asked by Amit Chandra, HDFC Securities
Management avoided giving adoption numbers or growth outlook, speaking in generalities.
no numbers givenreframed to general philosophy
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Question
have we achieved the, you know, the adoption of e-voting by like most of the companies or the companies which you target? In terms of e-voting, what kind of growth we will see?
Nehal Vora, MD and CEO
I think rather than specific numbers, I would say the broad trend is our focus on technology. ... That kind of reflects in how many companies want to really kind of adopt the CDSL platform as we move forward.
Answered
High priority
Reason for muted growth in transaction income despite higher cash volumes.
Asked by Sanketh Godha, Avendus Spark
Management directly explained the timing of delivery volumes within the quarter.
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Question
cash equity turnover for the country as a whole has done well in the current quarter... Then we see a bit of weakness or not that much amount of growth in the transaction income. From INR 33 crore, it has grown to INR 36 crore. Just wanted to understand what led to the muted growth in the transaction income.
Nehal Vora, MD and CEO
the first two months of this quarter was kind of a muted growth in terms of delivery volumes, et cetera. It's only in the last month of the quarter where we've started seeing some resiliency. Therefore, what we report is on a quarterly basis, and hence, the muted growth.
Declined
Medium priority
Whether June exit run rate of transaction income is meaningfully better.
Asked by Sanketh Godha, Avendus Spark
Management refused to comment on future trends.
forward-looking statement
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Question
you have said that the exit month, that is June month, has been better, is it fair to assume that compared to April and May, run rate of transaction income is meaningfully better, and July cash volumes or data is much, much superior?
Nehal Vora, MD and CEO
It's a future-looking statement. I'm sorry, I will not able to comment on this.
Answered
High priority
Whether employee cost growth of 50% YoY includes one-offs or is run-rate.
Asked by Sanketh Godha, Avendus Spark
Management confirmed the number is the run-rate going forward.
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Question
if I knock off that number in the base and see the growth, the growth is year-on-year 50% in the employee cost... Just wanted to understand this INR 22.6 crore of employee cost, has any similar kind of a one-off or this is the number what we need to see in subsequent quarters?
Nehal Vora, MD and CEO
Yes. Yes.
Answered
Low priority
Revenue from insurance repository and user base.
Asked by Devansh Nikotia, SIMPL
CFO provided the exact revenue figure.
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Question
What is the current revenue mix, or the current revenue from insurance repositories?
Girish Amesara, CFO
Currently, the income from operation in this quarter that we have achieved is roughly INR 16 lakhs, is against INR 12 lakhs of the previous quarter.
Quantitative claims vs filed numbers
| Claim | Management said | Filing | Verdict |
|---|---|---|---|
| Transaction income INR 36 crore | ₹36 cr | ₹150 cr | Understated vs filing |
Filed figures sourced from Screener.in. Claims within a small tolerance of the filing are marked “matches filing”.