CAMS Consolidated Quarterly PAT up

CAMS Consolidated Quarterly PAT up 39.6 % YoY, Recommends Final Dividend of Rs 11.84 per share

 

Consolidated PAT for Q4 stood at Rs 60.13 Cr. as against Rs. 43.07 Cr. in Q4 FY20, up 39.6 %

Consolidated PAT for FY 21 stood at Rs 205.29 Cr as against 171.89 Cr in FY20, up 19.4 %

 

Chennai based Computer Age Management Services Limited (CAMS), India’s largest registrar and transfer agent of mutual funds (a SEBI regulated entity) has announced its financial results for the fourth quarter and for the full year ended 31^st March 2021.

 

Q4 FY 21 Highlights

 

·         CAMS has reported a consolidated revenue from operations of Rs 199.77 Crore in Q4 FY21, an increase of 14.3% YoY from Rs 174.77 Crore in Q4 last year (Rs. 185.95 Crore Q3 FY21).
 
·         PAT increased by 39.6% YoY to Rs 60.13 Crore from Rs 43.07 Crore in Q4 last year (Rs. 56.42 Crore Q3 FY21).
 
·         PAT Margin stood at 29.5% for the quarter as against 24.1% in Q4 FY 20 (29.3% in Q3 FY 21).

 

 

·         CAMS has reported a consolidated revenue from operations of Rs 705.50 Crore in FY21, an increase of 0.8% YoY from Rs 699.63 Crore in FY 20
 
·         PAT increased by 19.4% YoY to Rs 205.29 Crores from Rs 171.89 Crore in FY20.
 
·         PAT Margin stood at 27.9% for FY 21 as against 23.8% in FY 20 

 

Business Update

 

The Company commenced its journey as a publicly listed company on 1^st October 2020 after its listing on BSE. Subsequently the company’s shares got listed on NSE on May 7^th, 2021.The Stock has been recently added to the MSCI Global Small Cap Index. The Average AUM of CAMS serviced Funds grew to Rs.22.3 Trillion and the company recorded the largest transaction volumes at 86 Million during the quarter.

 

SIP new registrations which were subdued in the first nine months of the year saw an uptick in the last quarter, recording 25 lakh new registrations. CAMS serves all Top 5 Asset Managers in the country and has a market share of ~70%.

 

Commenting on the results, Mr. Anuj Kumar, Whole Time Director & Chief Executive Officer, CAMS Limited, said “We had a satisfactory quarter both in terms of our financial results and in maintaining our strong focus on operational excellence and financial prudence. We have navigated the tough business environment induced by COVID and have ensured that mutual fund investors and clients are not impacted and continue to get high fidelity service. It was a milestone quarter with both AuM and transactions volumes recording new highs.

 

Digital pursuits remained central to empower investors & intermediaries and we launched Aadhaar OTP based eKYC, edge360 mobile app and investor services using AI and ML technologies as new additions to our offering suite. Our digital platforms continued to make significant contribution to the digital adoption momentum in the industry with myCAMS touching the 4 million user base. AIF and PMS digital on-boarding portal is seeing positive market response and will strengthen our value proposition for this segment.”

 

Commenting on new business products and services, Mr. Anuj Kumar explained “Our new products Recon Dynamix and Loan against Mutual Funds continue to gain traction with new clients getting acquired. Account Aggregator platform, NPS Central Record Keeping Agency and Payment Aggregator services are the new areas we are pursuing to expand our business in the emerging financial infrastructure and platform-based services arena.”

Swaminathan J and Ashwini Kumar Tewari take

 Swaminathan J and Ashwini Kumar Tewari take charge as MD’s of SBI

Swaminathan J and Ashwini Kumar Tewari have taken charge as the Managing Directors of the country’s largest lender State Bank of India (SBI). They would be holding this position for up to 3 years.

 

Prior to his appointment as SBI’s MD, Mr. Swaminathan was the Deputy Managing Director (Finance) at the bank where he was overseeing Budgeting, Capital Planning, Financial Reporting, Taxation, Audit, Economic Research, Investor Relations, and Secretarial Compliance. Mr. Swaminathan - in his career spanning over three decades with SBI - has held various assignments across Corporate and International Banking, Trade Finance, Retail & Digital Banking, and Branch Management. He has also served the bank as Chief Digital Officer - heading the Digital & Transaction Banking vertical. Mr. Swaminathan has been instrumental in driving the digital transformation of the bank with YONO SBI. Before this, Mr. Swaminathan served as the CGM of Hyderabad Circle and also had a stint in SBI's New York office. He is a Certified Anti-Money Laundering Specialist (CAMS) as well as Certified Documentary Credit Specialist (CDCS).

 

Mr. Tewari was serving SBI Card as MD & CEO - managing all facets of SBI’s card business - before he was appointed as MD of SBI. Mr. Tewari, who started his career with SBI in 1991 as a Probationary Officer, comes with a rich experience of over three decades in SBI handling several assignments for the bank, across various locations in India and abroad. Before taking over the card business, Mr. Tewari was the Country Head of the US Operations of SBI for more than three years, which included its offices in New York, Chicago, Los Angeles, Washington DC, and Sao Paulo (Brazil). He has also worked from Hong Kong where he oversaw the business development and control of SBI in Hong Kong, China, Japan, Korea, and the neighboring region. Mr. Tewari is an Electrical Engineer and a Certified Associate of the Indian Institute of Bankers (CAIIB). He is also a Certified Financial Planner (CFP) and has done a Certificate Course in Management from XLRI.

NSE, Warburg Pincus backed CAMS, files for

NSE, Warburg Pincus backed CAMS, files for IPO

Computer Age Management Services (CAMS), India’s largest technology driven financial infrastructure and services provider to the growing mutual fund industry, serving an AAUM of Rs. 18.7 trillion as on November, 2019 which is 69.4% of total mutual fund assets held by 16 Mutual Funds, on Thursday filed its Draft Red Herring Prospectus (DRHP) with markets regulator Securities and Exchange Board of India (SEBI) for its Initial Public Offering (IPO).

 

The IPO will be an Offer for Sale (OFS), in which 1,21,64,400 equity shares of face value Rs. 10 each will be offloaded by the Great Terrain Investment Ltd (an affiliate of Warburg Pincus), NSE Investments Ltd , Acsys Investments Ltd, HDFC Ltd and HDB Employees Welfare Trust  The issue includes an eligible employee reservations of upto 1.5% of the post offer paid up equity share capital. The Net Offer will have a 50% allocation to Qualified Institutional Buyers, 15% to Non Institutional Investors and 35% to Retail Individual Buyers.

The Book Running Lead Managers (BRLMs) to the offer are Kotak Mahindra Capital Company Limited, HDFC Bank Limited, ICICI Securities Limited and Nomura Financial Advisory and Securities (India) Private Limited.

Market sources estimate the IPO size to be anywhere between Rs. 1500-1600 crore

Spearheading the financial services segment since over 2 decades and augmenting fund growth, CAMS, offers an integrated canvas of services across physical and electronic touch points for receipt, verification and processing of financial and non-financial transactions for the BFSI sector, largely to the MF industry, in services of transaction origination and execution, payment, settlement and reconciliation; dividend processing, record keeping, report generation, intermediary empanelment and brokerage computation and compliance related services via its proprietary technology platforms and application suites such as myCAMS (2.9mn users), GoCORP (2400+ users), CAMSsmart, digiSIP, digiINFO,edge360 which caters to investors and intermediaries               

The AUM of equity mutual funds serviced by CAMS grew from Rs. 2,180 billion as of March 31, 2015 to Rs. 6,643 billion as of March 31, 2019, at a CAGR of 32.1%, and as of September 30, 2019 was Rs. 6,701 billion.

According to the DRHP, its total income and profit after tax for FY19 stood at Rs. 7,114.96 mn and Rs. 1308.95 mn respectively, its revenues have grown at a CAGR of 19% since 2017.

CAMS, the largest registrar and transfer agent for MFs going forward seeks to maintain its leadership position by deepening its technology integration and improving its value delivery, in addition to its focus on growing its business across insurance, electronic payment collection, Alternative Investment Funds, KYC Registration and Software Solutions.

According to the CRISIL Report, AAUM of the mutual fund industry has grown at a CAGR of 16.2 % between 2010 and 2019. This growth was led by increase in share of mutual funds in household savings as well as the increase in number of individual and institutional investors investing in mutual funds. Indian MF industry has a lot of headroom to grow keeping in mind higher disposable incomes and investable surplus, a growing investor base, increasing financial savings and Govt fillps towards awareness, ease, digitization and perception of MFs as a long term wealth creator