CDSL Q3 net profit drops 24 pc, income rises 10 pc

Leading depository CDSL on Thursday reported a 24 per cent fall in net profit to Rs 21.61 crore in three months ended December 2019.

In comparison, the depository had posted a net profit of Rs 28.46 crore in the year-ago period, Central Depository Services Ltd (CDSL) said in a statement.

The company's total income rose 10 per cent to Rs 68.49 crore for the third quarter ended December 31, 2019, from Rs 62.54 crore in the October-December quarter of the previous financial year.

CDSL said it has taken a one-time charge for a non-recurring previous years' anticipated statutory liability of Rs 10.56 crore.

"The consistent income growth is a reward for the core values that the company believes in, of being convenient, secure and dependable. We want to send out a very clear message that we are strongly committed to the core principles of transparency and good governance as per the framework prescribed by the government and the regulators," the company's MD and CEO Nehal Vora said.

The number of active beneficial owners accounts with CDSL has increased from 1.67 crore as on December 31, 2018, to 1.97 crore as on December 31, 2019, which indicates growth of 17.96 per cent.

As on December 2019, CDSL has 600 depository participants offering depository participants services from over 19,000 locations across the country. These depository participants comprise of clearing members, banks, custodians and non-banking financial companies.

CDSL, which allows investors to deposit securities by opening an account in electronic form (dematerialised), gets its revenues from transaction charges, account maintenance charges and settlement charges paid by depository participants as well as annual fees, corporate action and e-voting charges paid by companies whose securities are admitted in the depository's system.