Central Depository Services (India) Limited — Q1 FY25
CDSL reported a strong Q1 FY25 with consolidated total income up 65% YoY to INR 287 crore and net profit up 82% YoY to INR 134 crore, driven by robust market activity and retail...
bullish
high
✓ 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.
54%Questions answered4Evaded / deflected12Questions audited
Partial answer
High priority
What drives technology cost growth and outlook for compulsory dematerialization?
Asked by Supratim Datta, Ambit Capital
Explained drivers but gave no quantitative detail on cost trajectory.
no specific cost breakdownno forward guidance on run rate
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Question
Just wanted to understand what is driving the technology cost growth... Two is, in the second half of this year, the compulsory dematerialization of private company shares...
Nehal Vora, Managing Director and CEO, CDSL
Technology and human resources are two building blocks... This is more of a proactive investment... On the second question... we have built and augmented our resources...
Evasive
Medium priority
What is the revenue split in KRA business between brokers and mutual funds?
Asked by Supratim Datta, Ambit Capital
Did not provide the requested split, deflected to exchange platform.
claimed not to know the split
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Question
Just wanted to understand what would be the split of the business that you receive from brokers versus mutual funds within this KRA segment.
Sunil Alvares, Managing Director and CEO, CDSL Ventures Limited
As a KRA, I do not really know how many mutual funds are actually using... most of the transactions are happening on the exchange platform.
Answered
High priority
Was the transaction charge cut fully reflected in Q1 or spillover to Q2?
Asked by Amit Chandra, HDFC Securities
Clearly stated the cut was effective June 1, so only one month impact in Q1.
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Question
So obviously, we had the impact of the rate cut that we had. So I just wanted to clarify whether we had the full quarter impact in the first quarter or there is a spillover in the Q2 as well.
Nehal Vora, Managing Director and CEO, CDSL
The first of June is from when the transaction charges and deduction has come into play. So it has not had the full quarter, it's one month of the quarter which has ended.
Answered
Medium priority
What drove the jump in other income and is there insurance revenue?
Asked by Amit Chandra, HDFC Securities
Provided specific breakdown of other income components and amounts.
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Question
In terms of the revenue from others... there is a significant jump. So if you can clarify, is there any revenue from insurance also that we have booked in that?
Girish Amesara, CFO, CDSL
Other income is largely consisting of investment income, e-voting charges, CAS charges... e-CAS statement income... INR 11 crores... e-Voting... INR 5.6 crores.
Partial answer
Medium priority
Why did employee cost drop sequentially despite expected increments?
Asked by Mohit Motwani, Tara Capital
Attributed to March adjustments but did not quantify or explain the dip clearly.
no specific explanation for the drop
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Question
The employee cost has seen a dip sequentially. I think the impact of increments were to come in this quarter... what explains the sequential drop?
Girish Amesara, CFO, CDSL
Whatever excess or whatever adjustment needs to be made are done in the month of March by closing the financial statement. So it might happen in some quarters that the March and June quarter are quite similar.
Evasive
High priority
How will true-to-label circular affect transaction charges and real-time settlement?
Asked by Madhukar Ladha, Nuvama Wealth Management
Acknowledged the question but gave no specifics on approach or expected changes.
work in progresscannot reveal details
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Question
From October, the SEBI circular on true-to-label will also come into effect. So how are you planning to approach that? I believe you'll probably have to revise your charges...
Nehal Vora, Managing Director and CEO, CDSL
It is work in progress. We are working out. It will have to be approved by the board and then sent to SEBI for its approval... I will not be able to reveal too many details at this stage.
Answered
High priority
What was the rationale for cutting transaction charges?
Asked by Prayesh Jain, Motilal Oswal Financial Services
Clearly explained the rationale as passing on economies of scale.
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Question
Firstly, could you spell out the rationale for cutting the transaction charges?
Nehal Vora, Managing Director and CEO, CDSL
The real rationale of cutting the transaction charges is basically the economies of scale... the intent was to pass on that economies of scale to the market at large.
Answered
Medium priority
How many insurance companies are engaged with the insurance repository?
Asked by Prayesh Jain, Motilal Oswal Financial Services
Provided a specific number of companies signed up.
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Question
With respect to insurance repository, how many companies are you engaged with today? Life insurance companies and health insurance companies?
Latesh Shetty, Managing Director and CEO, CDSL Insurance Repository Limited
Including life, health, and general insurance companies, we are signed up with 44 companies.
Declined
High priority
What is the average realization per debit instruction after the price cut?
Asked by Sanket Godha, Individual Investor
Explicitly stated they do not give that breakup.
refused to provide average realization
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Question
If you can give a ballpark indicative number, average realization for the quarter per debit instruction?
Nehal Vora, Managing Director and CEO, CDSL
We don't give that breakup as part of funding, but you can take kind of off the cuff by seeing what is basically the revenue is seen as a total culmination of all that.
Declined
Medium priority
What is the growth in annual issue charges and folio mix?
Asked by Amit Chandra, HDFC Securities
Declined to provide folio numbers or mix breakdown.
refused to provide folio details
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Question
In terms of the annual issue charges... if you can just give some more color in terms of how it has been driven in terms of number of folio growth and also in terms of how the mix has been...
Nehal Vora, Managing Director and CEO, CDSL
We don't give these details out in the public domain. It is based on the overall SEBI circular...
Partial answer
High priority
What should be expected technology cost as a percentage of revenue?
Asked by Dhaval Shah, Fort Capital
Gave historical range but refused to provide forward-looking percentage.
no forward guidanceonly past range given
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Question
Regarding that technology charges... can you tell us as a percentage of revenue, what should we expect?
Nehal Vora, Managing Director and CEO, CDSL
That will mean it will be difficult to predict a percentage in the future. But if you go by the past trend, we have been ranging in around that range, about 10%-12%.
Answered
Medium priority
What drove the 170% YoY growth in IPO and corporate action charges?
Asked by Bhargav Sangi, Asian Markets Securities
Attributed growth to higher IPO activity, which is a clear explanation.
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Question
My question is on the IPO and corporate action charges. It shows growth by 170% year-over-year... what led to this significant growth?
Latesh Shetty, Managing Director and CEO, CDSL Insurance Repository Limited
The growth in IPO corporate action charges is largely related to the IPO that comes in the market. So higher number of IPO, higher number of revenue will be generated.