CDSL shares fall 4% after Q4 revenue, margins, demat accounts decline from December period

Shares of Central Depository Services Ltd. (CDSL) fell as much as 4% on Monday, May 5, in reaction to its quarterly results for the January-March period. The results were reported over the weekend and saw key parameters decline yet again on a sequential basis.

Compared to the December quarter, CDSL's revenue declined by 19.3% to ₹224.4 crore. The decline in revenue was mainly due to the underperformance of its core depository activity business. The depository services business saw a decline of 18% on a quarter-on-quarter basis.

CDSL's net profit fell 23% from last year to ₹100 crore. The decline in profitability was due to lower revenue and despite a higher other income compared to the December quarter.

Earnings Before Interest, Tax, Depreciation and Amortisation, declined by 32% quarter-on-quarter to ₹109.35 crore, while margins narrowed by nearly 10 percentage points to 48.73% from 57.79% during the quarter.

CDSL opened 30% fewer net accounts during the January-March period, compared to the December quarter. The figure for the March quarter stood at 64 lakh, compared to 92 lakh in the previous quarter. During the December quarter, the net new accounts opened had declined by 22%.

Demat custody also fell for the second quarter in a row to ₹71 lakh crore from ₹75 lakh crore during the December quarter.

The company's board has approved a dividend payout of ₹12.5 per share for its shareholders.

Shares of CDSL are trading 4.1% lower on Monday at ₹1,270.9. The stock has declined over 35% from its record high of ₹1,989.