Q2/Q3 2024 Earnings Review -3
In this post we will cover the companies who have reported their results
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CDSL
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JM Financial
CDSL
CDSL had another fantastic quarter, the market activity has been on upswing so there market related revenues have seen huge upswing. you can read the detailed results here or look at investor presentation here
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a 56% increase in total income for the quarter ended September 2024, reaching INR 359 crore compared to INR 230 crore in the same period last year.
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Net profit for the quarter increased by 49% to INR 162 crore
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The company added about ~2 crore DMAT accounts in the first six months of FY24-‘25, indicating robust growth in user base
As markets cool down overall their market linked income will come down, but I am not worried about it too much as regulator is constantly finding ways to add more to their kitty
In a significant move aimed at enhancing the security, efficiency, and transparency of shareholding management, the Government of India has mandated that all private companies, excluding small and government companies, must convert their physical shares to electronic form by September 30, 2024. This requirement, introduced by the Ministry of Corporate Affairs (“MCA”) through Rule 9B, marks a substantial shift in how private companies manage their securities.1
The quality of income is also improving
why I am saying that ?
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Issuer charges have increased by 26%
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Online Data income has increased by 60%
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Subsidiaries are delivering well as other income is also improving
Things to watch out for
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One thing to watch out for is that one of the long term holder, PPFAS mutual fund is selling and reducing stake probably indicating that fair value is achieved and near term weakness in markets could potentially derate the business
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Transaction charges income is likely to go down, effect from 1st of October where single charge as per SEBI circular would be levied, 23% of revenues came from this segment
JM Financial
You can read the detailed opening note below
Related: JM Financial
The company is executing on its promised path, you can read the latest investor presentation here . Management needs to walk the talk on improving investor outcomes
some of my highlights from concall
Approx INR 5,000 crore cash available to management, due to wholesale book rundown
The management is proposing return of cash via dividends next year, this will be a large boost to investor confidence
and finally some optionality if affordable housing finance is listed
rest we will pick up in next earnings or annual reviews
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Aditya Vision
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Neuland Labs
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EPACk Durables
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Swiss Military Consumer
looking forward to upcoming cricket season
Footnotes
This is a record of the author's thinking in November 2024, kept as written. It is not a recommendation to buy or sell, and the author may hold the securities discussed. See the disclosures.