Computer Age Management Services Limited (CAMS), India's largest registrar and transfer agent of mutual funds, has announced its financial results for the first quarter, along with an interim dividend declaration.

Financial Performance

CAMS reported a consolidated revenue of Rs. 354.15 crore for Q1, marking a 6.9% year-on-year growth. The company's EBITDA stood at Rs. 154.82 crore, up by 2.8% compared to the same quarter last year, with an EBITDA margin of 43.7%. Profit After Tax (PAT) saw a modest increase of 0.8% year-on-year, reaching Rs. 109.09 crore, with a PAT margin of 29.7%.

Dividend Declaration

The Board of Directors has approved an interim dividend of Rs.11 per equity share. The record date for determining eligible shareholders has been set as August 8, with the dividend expected to be disbursed on or before August 29.

Operational Highlights

CAMS achieved several milestones in the mutual fund sector during Q1:

• Assets Under Management (AuM) crossed Rs.50 trillion in June, maintaining a market leadership with approximately 68% market share.
• Equity assets surpassed Rs.25 trillion, reaching Rs.26.7 trillion despite market volatility.
• New SIP registrations increased by 19% year-on-year, with 11.2 million registrations in Q1.
• The company's unique investor base crossed the 41 million mark, growing 27% year-on-year.

Beyond Mutual Funds

CAMS reported growth in its non-mutual fund businesses:

• CAMSPay's revenue grew by 26% year-on-year, with its proprietary payment gateway infrastructure becoming operational.
• CAMS Alternatives saw Assets Under Service crossing Rs.2.70 lakh crore in Q1.
• CAMSRep's policy base grew 41% year-on-year to 12 million policies.
• CAMSKRA entered into a definitive agreement to acquire the KRA business from NSE Data Analytics Ltd.

Management Commentary

Anuj Kumar, Managing Director of CAMS, commented on the results: "It is heartening for us to share that, despite global headwinds, our company has delivered strong results with a revenue growth of 7% Y-on-Y, and healthy EBITDA margin of 43.7%. This quarter's results affirm the resilience of our business segments and the unwavering execution focus of our teams."

Future Outlook

The company is set to onboard more Asset Management Companies (AMCs) in the coming months and expects Life Insurance Corporation of India (LIC) to go live with eInsurance accounts in Q2. CAMS continues to focus on innovation and customer-centricity to drive sustainable growth and deliver value to its stakeholders.

As CAMS maintains its market leadership in the mutual fund domain and expands its presence in non-mutual fund businesses, the company appears well-positioned to capitalize on the growing financial services sector in India.

Computer Age Management Services Limited (CAMS), India's largest registrar and transfer agent of mutual funds, has announced its financial results for the first quarter. The company reported mixed results with some declines in key financial metrics compared to the previous quarter, but showed growth on a year-on-year basis.

Financial Highlights

Despite the quarter-on-quarter decline, the company reported a 6.9% year-on-year increase in consolidated revenue.

Dividend Declaration

The company's board has declared an interim dividend of Rs. 11 per equity share. The record date for this dividend is set as August 8, with the expected disbursement by August 29.

Operational Details

Standalone Performance

CAMS reported standalone revenue from operations of Rs. 334.38 crore and a net profit of Rs. 106.08 crore.

Consolidated Performance

On a consolidated basis, revenue from operations stood at Rs. 354.15 crore with a net profit of Rs. 109.09 crore.

Strategic Acquisition

In a significant move, CAMS' wholly-owned subsidiary, CAMS Investor Services Private Limited (CAMS KRA), has signed a Business Transfer Agreement to acquire the KYC Registration Agency business from NSE DATA & ANALYTICS LIMITED through a slump sale arrangement. This strategic acquisition is expected to strengthen CAMS' position in the KYC services segment.

Audit Report

The statutory auditors have issued unmodified limited review reports on the financial results, indicating that the financial statements present a fair and accurate view of the company's financial position.

Despite facing some challenges as evidenced by the quarter-on-quarter declines, CAMS continues to show resilience with year-on-year growth. The company's strategic moves, including the acquisition of the KYC business and the declaration of an interim dividend, demonstrate its commitment to growth and shareholder value. As CAMS navigates through market fluctuations, its focus on expanding services and maintaining market leadership positions it well for future opportunities in the financial services infrastructure space.