In a significant financial stride, Central Depository Services (India) Ltd (CDSL) witnessed a remarkable surge in its performance for the fourth quarter ended March 2024. The leading depository reported a doubling of its net profit to Rs 129 crore, marking a substantial increase from Rs 63 crore in the corresponding quarter last year. This remarkable growth underscores the company’s robust financial health and its pivotal role in the capital markets.
The total income of CDSL soared by an impressive 86 percent to Rs 267 crore during the March quarter of the financial year 2023-24, compared to Rs 144 crore in the same period of the previous year. This surge in income reflects the efficacy and efficiency of CDSL’s operations in facilitating holding and transacting in securities in electronic form and settling trades on stock exchanges.
For the entire financial year 2023-24, CDSL witnessed a commendable growth trajectory, with its net profit reaching Rs 420 crore, a remarkable surge of 52 percent from the preceding year. The total income for the fiscal year stood at Rs 907 crore, indicating a robust growth rate of 46 percent. This substantial financial growth reaffirms CDSL’s position as a key player in the depository services sector, catering to the diverse needs of market participants.
Nehal Vora, the Managing Director & CEO of CDSL, expressed the company’s commitment to empowering market participants with digital services aimed at enhancing capital market efficiency and security. Vora highlighted the significance of tools such as ASBA, e-AGM, eDIS, and Margin pledge mechanism in bolstering market operations. He attributed CDSL’s sustained business and financial growth to the trust placed in the company by stakeholders across the capital markets.
In a move to reward shareholders for their continued support and trust, the board of CDSL recommended a final dividend of Rs 19 per equity share for the fiscal year 2023-24, subject to approval. Additionally, the board proposed a special dividend of Rs 3 per equity share, bringing the total dividend payout to Rs 22 per equity share, subject to shareholders’ approval. These dividends underscore the company’s commitment to value creation and wealth distribution among its shareholders.
CDSL’s stellar performance in the fourth quarter and the fiscal year 2023-24 reinforces its position as a leading depository facilitating seamless transactions in the capital markets. With a focus on innovation, efficiency, and trust, CDSL continues to play a pivotal role in shaping the landscape of India’s financial markets, driving growth, and fostering investor confidence.
