Central Depository Services Limited (CDSL) is a key institution in India’s capital markets, enabling the electronic holding and trading of securities. Founded in 1999, CDSL has become integral to market infrastructure, offering services that boost operational security and efficiency. Its revenue streams include annual issuer fees, transaction charges, and a variety of value-added services for investors and financial intermediaries.
Revenue Streams of CDSL
Central Depository Services Limited (CDSL) derives revenue primarily from six major streams. Annual issuer charges contribute the largest portion, at Rs.25,377.93 lakh, or 31.2 percent of total revenue, followed by transaction charges at Rs.22,158.42 lakh, making up 27.3 percent.
IPO and corporate action fees add Rs.9,256.12 lakh (11.4 percent), while online data charges generate Rs.15,945.53 lakh (19.6 percent). Additionally, e-CAS and BO statement fees bring in Rs.3,416.27 lakh (4.2 percent), and e-voting services provide Rs.2,577.70 lakh (3.2 percent).
The remaining revenue comes from various other streams, such as user facility charges, account maintenance fees, document storage and verification, e-KYC services, e-sign charges, and insurance repository fees, collectively contributing to CDSL’s total revenue of Rs.81,225.66 lakh. These diversified revenue streams underscore CDSL’s role in supporting a range of essential capital market services.
Financial Performance
According to its recent filing, in the quarter ending September 2024, Central Depository Services (India) Ltd reported a 56 percent increase in revenue to Rs.322 crore compared to Rs.207 crore in Q2 FY24. Furthermore, on a quarter-over-quarter basis, the company saw an increase of 25 percent from Rs.257 crore in Q1 FY25.
In the same period, the company reported a significant increase in net profit of 49 percent to Rs.162 crore in Q2 FY25, up from Rs.109 crore Q2 FY25 and 21 percent from Rs.134 crore in Q1 FY25.
Share Price Movement
The share price of CDSL increased by 2.23 percent on Wednesday, reaching an intra-day high of Rs.1,629.95 per share, up from the previous close of Rs.1,587.60 apiece. However, the shares adjusted since then and closed at Rs.1,622.00 each. Over the last five years, the stock has delivered returns exceeding 1,300 percent.
Company Profile
Central Depository Services Limited is a part of the capital market structure that serves all market participants, including exchanges, clearing corporations, depository participants (DPs), issuers, and investors.
It facilitates the holding of securities in dematerialized form and enables securities transactions. As of June 2024, CDSL held a 77 percent market share in the number of demat accounts. CDSL is the only depository securities company listed on the stock exchange.
Written by – Siddesh S Raskar
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