CDSL 2023-24 Annual Report Analysis

Thu, 1 Aug

CDSL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during FY23-24.

CDSL Income Statement Analysis

• Operating income during the year rose 46.3% on a year-on-year (YoY) basis.
• The company's operating profit increased by 53.1% YoY during the fiscal. Operating profit margins witnessed a fall and down at 60.1% in FY24 as against 57.5% in FY23.
• Depreciation charges increased by 39.8% and finance costs decreased by 17.9% YoY, respectively.
• Other income grew by 44.3% YoY.
• Net profit for the year grew by 52.0% YoY.
• Net profit margins during the year grew from 49.7% in FY23 to 51.7% in FY24.

CDSL Income Statement 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Net Sales	Rs m	5,551	8,123	46.3%
Other income	Rs m	658	950	44.3%
Total Revenues	Rs m	6,209	9,073	46.1%
Gross profit	Rs m	3,189	4,883	53.1%
Depreciation	Rs m	195	272	39.8%
Interest	Rs m	1	1	-17.9%
Profit before tax	Rs m	3,652	5,560	52.3%
Tax	Rs m	892	1,365	53.0%
Profit after tax	Rs m	2,760	4,196	52.0%
Gross profit margin	%	57.5	60.1
Effective tax rate	%	24.4	24.5
Net profit margin	%	49.7	51.7

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CDSL Balance Sheet Analysis

• The company's current liabilities during FY24 stood at Rs 2 billion as compared to Rs 2 billion in FY23, thereby witnessing an increase of 30.3%.
• Current assets rose 22% and stood at Rs 8 billion, while fixed assets rose 23% and stood at Rs 10 billion in FY24.
• Overall, the total assets and liabilities for FY24 stood at Rs 18 billion as against Rs 15 billion during FY23, thereby witnessing a growth of 22%.

CDSL Balance Sheet as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	12,137	14,633	20.6
Current Liabilities	Rs m	1,842	2,400	30.3
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	14,569	17,814	22.3
Current assets	Rs m	6,558	7,986	21.8
Fixed Assets	Rs m	8,011	9,828	22.7
Total Assets	Rs m	14,569	17,814	22.3

CDSL Cash Flow Statement Analysis

• CDSL's cash flow from operating activities (CFO) during FY24 stood at Rs 4 billion, an improvement of 55.1% on a YoY basis.
• Cash flow from investing activities (CFI) during FY24 stood at Rs -2 billion, an improvement of 97.4% on a YoY basis.
• Cash flow from financial activities (CFF) during FY24 stood at Rs -2 billion on a YoY basis.
• Overall, net cash flows for the company during FY24 stood at Rs -319 million from the Rs -352 million net cash flows seen during FY23.

CDSL Cash Flow Statement 2023-24

Particulars	No. of months	12	12	% Change
	Year Ending	Mar-23	Mar-24
Cash Flow from Operating Activities	Rs m	2,488	3,859	55.1%
Cash Flow from Investing Activities	Rs m	-1,263	-2,492	-
Cash Flow from Financing Activities	Rs m	-1,578	-1,686	-
Net Cash Flow	Rs m	-352	-319	-

Current Valuations for CDSL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 40.1, an improvement from the EPS of Rs 26.4 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 2,463.7, stands at 61.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 17.6 times, while the price to sales ratio stands at 31.7 times.
• The company's price to cash flow (P/CF) ratio stood at 34.8 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Sales per share (Unadj.)	Rs	53.1	77.7
TTM Earnings per share	Rs	26.4	40.1
Diluted earnings per share	Rs	26.4	40.1
Price to Cash Flow	x	0.0	34.8
TTM P/E ratio	x	0.0	61.2
Price / Book Value ratio	x	10.4	10.6
Market Cap	Rs m	126,440	155,587
Dividends per share (Unadj.)	Rs	16.0	22.0

Ratio Analysis for CDSL

• Solvency Ratios

Current Ratio: The company's current ratio deteriorated and stood at 3.3x during FY24, from 3.6x during FY23. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 5,055.7x during FY24, from 2,726.0x during FY23. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 28.7% during FY24, from 22.7% during FY24. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 38.0% during FY24, from 30.1% during FY23. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 23.6% during FY24, from 19.0% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Current ratio	x	3.6	3.3
Debtors’ Days	Days	248	300
Interest coverage	x	2,726.0	5,055.7
Debt to equity ratio	x	0.0	0.0
Return on assets	%	19.0	23.6
Return on equity	%	22.7	28.7
Return on capital employed	%	30.1	38.0

To see how CDSL has performed over the last 5 years, please visit here.

CDSL Share Price Performance

Over the last one year, CDSL share price has moved down from Rs 0.0 to Rs 0.0, registering a loss of Rs 0.0 or around 0.0%.

Overall, the NIFTY 50 is up 0.3% over the year.

(To know more, check out historical annual results for CDSL and quarterly results for CDSL)