A thread on Central Depository Services (India) Ltd
#CDSL #Depository
1/ About the Company
CDSL is one of the two securities depository in India
A depository is a facilitator for holding of securities in the dematerialised form and an enabler for security transactions
BSE Ltd is the promoter of the company and owns 20% of the company
2A/ Number crunching
Annual Issuer Charges for FY21 – INR 861M (+11.6% YoY)
CAGR 13.7% FY17-21
5% CAGR in no. of securities
8% CAGR in folio charges
1.23Crores Demat accounts added during FY21
First Indian Company to reach 3 Cr. Demat accounts
2B/ Number crunching
Consolidated Revenue grew by 53% (YoY)
Consolidated Operating Profit up 138% (YoY)
Consolidated PAT increased by 88.7% (YoY)
Cash flow from operating activity grew to INR 193 Cr. from INR 82 Cr.
60% Dividend payout policy
The company has been debt-free
3/ Subsidiaries
CVL is the largest KYC Registration Agency (KRA) in the country
2.81 crore fully digitized KYC records FY21
CIRL is an insurance repository with 6.03 lakh e-insurance accounts FY21
CCRL is a commodity repository with 3258 registered warehouses FY21
4/ Competitive Landscape
Duopoly Market between NSDL & CDSL
However NSDL is not listed and hence there is lack of information
CDSL has a higher number of registered demat accounts as it became the first Asian depository to reach 3 Cr. Demat accounts
5/ Sectoral Analysis
Barriers for entry imposed
Indian equity markets have presented strong growth
Dematerialization of shares is compulsory for all companies resulting in increased business
Total Demat Accounts in India – 5.15 Cr. (Jan 2021)
Growing awareness in smaller cities
6A/ Future Outlook
Agreement with Nepal stock exchange to set up a depository and clearing and settlement system
MoU with Korea, New York, Russia, Japan, etc to increase cooperative relationship
CDSL became the first depository to open a branch at IFSC at Gift City
6B/ Future Outlook
The management’s focus is on value creation for customers, product digitization and automation on KRA
Increased availability in tier-2, tier-3 and tier-4 markets
Gaining market share over competitor to boost business

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