CAMS in demand after Q4 PAT rises 39% YoY

Computer Age Management Services (CAMS) rose 1.16% to Rs 2,491.95 after the company's consolidated net profit increased 39.6% to Rs 60.13 crore on 14.3% rise in revenue from operations to Rs 199.77 crore in Q4 FY21 over Q4 FY20.

Profit before tax stood at Rs 80.87 crore in Q4 FY21, up 19.8% over Q4 FY20. Profit after tax margin stood at 29.5% for Q4 FY21 as against 24.1% in Q4 FY20.

The average Asset under of Management (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 five Asset Managers in the country and has a market share of 70%.

CAMS registered a 19.4% increase in consolidated net profit to Rs 205.29 crore in the year ended March 2021 (FY21) compared with the year ended March 2020 (FY20). Revenue from operations rose 0.8% year-on-year to Rs 705.50 crore in FY21 over FY20.

Commenting on the results, Anuj Kumar, whole time director & CEO of CAMS 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 onboarding portal is seeing positive market response and will strengthen our value proposition for this segment."

Commenting on new business products and services, Anuj Kumar said, "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."

Meanwhile, the board has recommended a final dividend of Rs 11.84 per equity share and fixed 29 July 2021 as the record date for the dividend.

CAMS is a technology-driven financial infrastructure and services provider to mutual funds and other financial institutions with over two decades of experience.

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