- 05 May 2025
- ICICIdirect Research
CDSL REPORTED DIP IN REVENUE AND PROFITABILITY MAINLY ON ACCOUNT OF SLUGGISH CAPITAL MARKET CONDITIONS
CDSL - 1409 Change: 71.60 (5.35 %)News: CDSL reported dip in revenue and profitability mainly on account of sluggish capital market conditions. Consolidated revenue of ₹256 crore declined by 14% QoQ / 4.1% YoY. Demat accounts opened during the quarter was recorded at 64 lakhs, falling sharply by 30.4% QoQ and 41.3% YoY. Segmentally, revenue from IPO & Corp action section declined sharply from Rs 58 cr to Rs 25 cr. Similarly, transaction charges and online data charges i.e. KYC & data fetching charges also declined. EBITDA stood at ₹114 crore, translating margins at 44.5% which declined by 449 bps sequentially and 531 bps YoY. Company reported consolidated PAT of ₹100 crore, which saw a decline of 23% QoQ and 22.5% YoY.
View: CDSL business is highly sensitive to equity market conditions with annual issuer income i.e. ~30% of the revenue being relatively stable while transaction charges, IPO income, online data charges are highly volatile alongwith equity markets. Considering valuation at ~53x on TTM basis and volatility in equity markets, its financials are likely to stay under pressure.
Impact: Negative