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Computer Age Management Services Limited — Investor Presentation 2023
May 6, 2023
61773_rns_2023-05-06_1260cad3-464b-4450-82ca-61c0324dd0ec.pdf
Investor Presentation
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06[th] May 2023
BSE Limited, National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers, Exchange Plaza, 5th floor, Plot No. C/1, Dalal Street G Block, Bandra Kurla Complex, Bandra Mumbai 400 001 (East), Mumbai 400 051 Scrip Code: 543232 Trading Symbol : CAMS
Dear Sir / Madam,
Sub: Presentation of the Standalone and Consolidated Financial Data for the quarter and year ended March 31, 2023
Please find enclosed presentation of the Standalone and Consolidated Financial Data for the quarter and year ended March 31, 2023. The Company has scheduled an Earnings call on May 08, 2023 at 10.00 AM IST. During this call, the Management will discuss the company’s Q4 FY23 financial performance for the quarter and year ended March 31, 2023.
The details of the said earnings conference call has already been filed with the Exchanges and are available on the website of the Company.
We request you to kindly take the same on record.
Thanking you,
Yours faithfully, For Computer Age Management Services Limited
Digitally signed by Manikandan Manikandan Gopalakrishnan DN: cn=Manikandan Gopalakrishnan Gopalakrishna c=IN o=PersonalReason: I am approving this document n Location: Date: 2023-05-06 16:18+05:30 G Manikandan Company Secretary and Compliance Officer
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COMPUTER AGE MANAGEMENT
SERVICES LIMITED
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Investor Presentation May 2023
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Safe Harbour Statement
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This Presentation, except for the historical information, may contain statements, including the words or phrases such as ‘expects, anticipates, intends, will, would, undertakes, aims, estimates, contemplates, seeks to, objective, goal, projects, should’ and similar expressions or variations of these expressions or negatives of these terms indicating future performance or results, financial or otherwise, which are forward looking statements.
These forward-looking statements are based on certain expectations, assumptions, anticipated developments and other factors like risk and uncertainties regarding market growth, competition, ability to maintain and manage key customer relationship and those factors which may affect our ability to implement business strategies successfully.
The Company, therefore, cannot guarantee that the forward-looking statements made herein shall be realized. The Company does not undertake any obligation to update forward looking statements that may be made from time to time by or on behalf of the Company to reflect the events or circumstances after the date hereof.
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Anuj Kumar
Managing Director
Ram Charan Sesharaman
Chief Financial Officer
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FY23 Q3 Earnings Presentation
Presentation flow
Business Overview
Key Highlights for Q4 FY23 Page No: 06
AAuM Q4 FY23 – MF industry & CAMS Page No: 09 Operational Metrics Q4 FY23 Page No: 10
Financials
Revenue & Financial Highlights – Q4 FY23 Page No: 19-23
Standalone P&L – Q4 FY23 Page No: 24 Consolidated P&L – Q4 FY23 Page No: 25
Revenue Profile Page No: 26-27
Update on ESG Initiatives Page No: 28-36
About CAMS
Business at a Glance Page No: 38 Mutual Fund Services Business Page No: 39-42 Non-Mutual Fund Services Business Page No: 43-44 Governance / Management Team Page No: 45-47
Appendix
Corporate Structure Page No: 49 History / Milestones Page No: 50
Awards & Accolades Page No: 51 Shareholding Page No: 52 Glossary Page No: 53
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BUSINESS OVERVIEW
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Key Highlights for the Q4 FY’23
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Navi Mutual Fund live on CAMS Platform
-
AUM of CAMS funds was at Rs.28 Tn in Q4
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Equity asset trend in CAMS serviced funds are encouraging. Share of Equity AUM saw a 0.5% increase from 64.8% to 65.3%. Equity Net sales share rose by ~10 percentage points from 63.7% to 73.3%
-
CAMSRep achieves 2.2X growth in policy addition and 2X growth in platform transactions in FY23
-
CAMS NPS continues to retain the #2 position with 9% market share in eNPS segment
-
Subscriber addition through POP and corporate channels have commenced
-
Alternative Services vertical continued its high growth trajectory recording ~21% Y-o-Y growth in revenue in Q4 FY23, 26% growth in FY23 over FY22
-
CAMS WealthServ, the digital onboarding platform transform client onboarding for Alternatives Industry with 75+ signups
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CAMSPay delivers a stellar year with 27% growth in revenue driven by increase in transaction volumes and slew of new product offerings
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Received RBI's in-principle authorization to be a Payment Aggregator in Feb 2023
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Expanded industry presence - Growing rapidly within BFSI space, unprecedented merchant addition in FY23
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Our AA + TSP offering has gained momentum with over 20+ sign ups in the quarter taking the total count to 79 mandates
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Acquisition of Think360.ai to bolster the offering in the AA+TSP ecosystem
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myCAMS holds fort among the Top 2 fintech apps with close to 6 Million downloads
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MFCentral gains popularity amongst the intermediary ecosystem with feature rich APIs for MF lifecycle. Daily API hits cross 20,000 a day
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| CAMS acquired majority stake in Think360.ai, a full-stack Data Science and AI-focused firm, focused on creating |
|---|
| innovative solutions using cutting-edge technologies, advanced analytics, AI/ML and mobile cloud computing |
| Products Data management platform - SaaS that offers analytics and credit scoring based on SMS data SaaS product that offers video or digital KYC solutions using AI Low code platform to enable rapid delivery of apps with minimum hand-coding Feed based data analytics platform for Account Aggregator framework (TSP Layer) |
| Services Analytics Data science services related to data engineering, storage and analysis, BI & Modelling ADMS Data science services related to building, maintaining and supporting software applications |
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CAMS growth trend upwards in overall AuM, SIP registrations and transaction volumes
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AuM growth New SIP Registrations Transaction volume
Historic
high
7.6
26.2 27.0 27.8 28.0 124.1
37.6 lakh38.3 40.3
Tn Tn Tn Tn 37 111.3 Mn
lakh lakh lakh
lakh Mn
Jun- 22 Sep-22 Dec-22 Mar-23
Average AuM for the respective month Apr-Jun’22 Jul-Sep’22 Oct-Dec’22 Jan-Mar’23 Jan-Mar’23
Apr-Jun’22
Strong growth in SIP registrations for
Overall AUM for Q4FY23 was at Rs.28
the quarter with 40.3 lakh new
lakh Cr (a marginal increase over
registrations has led to an improved
Q3FY’23)
market share of 62% (5% growth over
Equity AUM share of CAMS Serviced NFO
CAMS has
Q3FY’23)
funds continues its growth trajectory 71% Share
with share increasing from 64.8% in Q4FY’23 SIP inflows remain strong, in Industry 14,836 Cr
14,023 Cr
Q3’FY23 to 65.3% in Q4’FY213 reaching a historic high of ₹ 24,605 Cr
12,061 Cr
Equity Net Sales share has increased for CAMS serviced funds (6% growth
3,130 Cr
by 9.6 percentage points in Jan- over Q3FY’23 inflows)
Mar’23 (73.3% market share) Apr-Jun’22 Jul-Sep’22 Oct-Dec’22 Jan-Mar’23
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- Average AuM for the respective month
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Mutual Fund Industry & CAMS AAuM – Q4 FY23
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CAMS – Market Share (based on Quarterly
AAuM Serviced by CAMS Industry AAuM
AAuM)
₹ 28.0 trillion ₹ 41.1 trillion
68.2%
5.1% YoY 5.9% YoY
Net flows into equity
assets remain
positive in Q4 FY23 0.7% QoQ 0.6% QoQ
Equity AAuM – CAMS Equity AAuM – Industry
Inflows through SIPs
increased by
5.8% QoQ / 22.3%
₹ 13.0 trillion ₹ 19.4 trillion
YoY
18.0% YoY 12.6% YoY
0.8% QoQ (0.3)% QoQ
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Operational Metrics – Q4 FY23
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SIP Book Systematic Transactions Transaction Volume 35.4 Mn Processed 124.1 Mn (as on 31[st] Mar 23) 101.9 Mn YOY: 8% YoY: 18% YoY: 16% QoQ: 6% QoQ: 4% QoQ: 5% Live Investor Folios Unique Investors Serviced 57.4 Mn 25.7 Mn (as on 31[st] Mar 23) (as on 31[st] Mar 23) YoY: 11% YoY: 12% QoQ: 3% QoQ: 4%
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Mutual Fund Industry & CAMS AAuM – FY23
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CAMS - Market Share (based on Quarterly
AAuM Serviced by CAMS Industry AAuM
AAuM)
Rs. 27.3 trillion Rs. 39.9 trillion
68.3%
During the year Net 7.1% YoY 8.3% YoY
flows into equity
assets positive
Equity AAuM - CAMS Equity AAuM - Industry
Inflows through
SIP increased by
Rs. 12.4 trillion Rs. 18.6 trillion
27.7% YoY
22.6% YoY 18.3% YoY
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Operational Metrics – FY23
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SIP Book Systematic Transactions
Transaction Volume
35.4 mn Processed
465.7 mn
(as on 31 [st] , Mar 23) 382.8 mn
YoY: 12%
YoY:18% YoY: 23%
Live Investor Folios Unique Investors Serviced
57.4 mn 25.7 mn
(as on 31 [st] , Mar 23) (as on 31 [st] , Mar 23)
YoY: 11% YoY: 12%
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The Alternatives business grows 21% Y-o-Y on the back of accelerated signings and rapid adoption of CAMS WealthServ
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Versatile technology & contemporary digital utilities
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Full stack services for investor onboarding, fund accounting and operations
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Wealthserv digital on-boarding provides a transformational experience to investors
300+
₹1.5 Tn
funds serviced assets under service across 140+ fund houses
75+
1[st]
Installations
RTA at GIFT City of CAMS Wealthserv & to set up full-stack Fintuple digital operations for AIFs on-boarding solution
-
The business grew by 26% over FY22
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Fintuple Technologies continues to make inroads with large ticket wins from marquee clients
CAMS GIFT City operations scaling with 9 signed up clients
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AA+TSP business is gaining momentum with expanded outreach and superior product positioning
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Business Wins
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Razor-sharp focus on sales yielding continuous wins
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79 AA/TSP wins 20 in Q4
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Creating newer use cases – Bank account Validation through AA as Substitute to penny drop
Business Updates
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CAMS RTA / to be live as FIP Gateway in Q1 FY24
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CAMS CRA live as FIP Gateway in Q4
-
IRDA entities initiating integration journeys
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Catapulted to leadership position in the industry on FIP integration
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- product offerings further fortified
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>50% Market Share In Mutual Funds Ecosystem for RP*
2 Lakhs +
₹5000 Crores +
UPI Autopay Mandate Registrations worth of Monthly Transactions
Key Highlights
140 Million NACH Active Mandate registrations
₹ 520 Crores
worth of UPI+ Transactions
Expanded Industry Presence
30% CAGR / Merchant Base Growing rapidly within BFSI space , unprecedented merchant additions in FY23
Payment Aggregator
Received RBI's in-principle authorization to be a Payment Aggregator in Feb 2023
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scaling new highs in eIA and epolicy and ramps up deep contact tracing services
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The singular platform in India to service both Insurance companies & policy holders
Empowers over 40 insurance companies with end-to-end operational support and technology-driven solutions
- Proprietary servicing portal Policy Genie facilitates customer lifecycle management including policy generation, renewal, payout and policy holder services
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2.5X
New Insurers Onboarded into Digital Services
5 million
Increase in Policy Service to 2,57,000 Transaction
E-Insurance policies - Growth of over 35% from FY22
₹8 Billion
9 million Payout transactions processed
Unclaimed Amount Processed using Deep contact tracing
New Product and Services
Insta EIA
Real-time creation of an e-Insurance account
Digital Loan Assignment
Digitizing the entire loan policy assignment process
KYC
KYC platform for Insurance companies
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CAMS CRA – focusing on simplifying customer journeys for eNPS and extending API stack for POPs
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CAMS launched the industry first CRA platform on cloud in March 2022
Within a short span of time, achieved 9% share and #2 position in new eNPS sales in Q4 FY’23
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~3 lakh 25K
visitors to the registrations website / month which is 10% market share
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Innovation and Transformation
- Industry first features of CAMS CRA - CKYC and UPI based Bank account verification (recommended by PFRDA to other intermediaries)
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Subscriber addition through POP and corporate channels has commenced
-
Onboarded 9 POPs and 6 corporates and built a strong pipeline in place including fintechs
Total eNPS industry registrations
2,86,000
Total eNPS through camsnps.com
24,874
eNPS registrations, Market share FY23
9%
Position in new eNPS sales
#2
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FINANCIALS
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Revenue Highlights – Q4 FY23
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2.5 % YoY
Revenue ₹24,923.9 Lakhs
2.3% QoQ
Asset 3.3% YoY Non-Asset 5.0% YoY 7.7% YoY
Non-MF
Based Based
Revenue
0.2% QoQ 5.3% QoQ 18.6% QoQ
Revenue Revenue
Asset Mix
Equity component: Q4 FY23 @ 46.5% (Q4 FY22: @41.4% / Q3 FY23: @ 46.4 %)
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Numbers are after eliminating non-controlling interest
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Financial Highlights – Q4 FY23
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Operating EBITDA – 43.9% PBT – 38.4% PAT – 29.0%
Return on
Net-Worth
11,217
9,894 9,879 7,461 ~38.9%
9,794
7,384
10,930
10,832 7,372
Cash & Cash Equivalent
Q3 FY23 Q4 FY22 Q4 FY23 Q3 FY23 Q4 FY22 Q4 FY23 Q3 FY23 Q4 FY22 Q4 FY23
as on 31 [st] Mar 2023 was
₹ 482.2 Cr
2.6 % YoY 0.1% YoY 1.1% YoY
0.9 % QoQ 0.9% QoQ 1.2 % QoQ
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Profit numbers are after considering the non-cash charge (ESOPs) amounting to ₹ 5.1 Crs (Q4 FY’23), ₹ 7.5 Cr (Q4 FY’22) and ₹ 5.5 Cr (Q3 FY’23)
Final Dividend Proposed: ₹12 Per share
-
*Return on Net-worth – PAT (annualized) / Average Equity | ** Includes Bank balances, Fixed deposit, Govt Bond & Investment in MF / Excludes money held in trust (ECS, NPS & Stamp duty collection a/c & Money in unpaid dividend a/c
-
Numbers are after eliminating non-controlling interest
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Revenue Highlights – FY23
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Revenue ₹97,182.72 Lakhs 6.8 % YoY
Asset Non-Asset
Non-MF
Based 7.3% YoY Based 2.7% YoY 9.3% YoY
Revenue
Revenue Revenue
Asset Mix
Equity component: FY23 @ 45.3% (FY22: @ 39.6 % )
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Numbers are after eliminating non-controlling interest
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Financial Highlights – FY23
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Operating EBITDA – 43.4% PBT – 38.1% PAT – 28.6%
42,413 42,175 38,265 38,080 28,695 28,525
Return on
Net-Worth
39.9%
FY22 FY23 FY22 FY23 FY22 FY23
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0.6 % YoY
0.5% YoY
0.6% YoY
Profit numbers are after considering the non-cash charge (ESOPs) amounting to ₹26.7 Cr vs. FY’23 ₹25.3
*Return on Net-worth – PAT / Average Equity
Numbers are after eliminating non-controlling interest
22
Consolidated Financial Highlights – Quarterly
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In INR Lakh In INR Lakh
Total Operating Revenue OP.EBITDA & OP. EBITDA in %
30,500 0.2 12,000 90.0%
80.0%
25,500 0.1 10,000
70.0%
0 8,000 46.2% 60.0%
20,500 46.5% 47.7% 46.1% 41.4% 43.8% 44.5% 43.9% 50.0%
-0 .1 6,000
40.0%
15,500
-0 .2 4,000 30.0%
10,500 20.0%
-0 .3 2,000
20,118 22,760 23,771 24,318 23,665 24,237 24,357 24,924 9,289 10,575 11,332 11,217 9,804 10,610 10,832 10,930 10.0%
5,500 -0 .4 0 0.0%
FY 22 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY 22 Q1 Q2 Q3 Q4 FY 23 Q1 Q2 Q3 Q4
Total Revenue OP.EBITDA OP.EBIDA in (%)
PBT & PBT in % In INR Lakh In INR Lakh
PAT & PAT in %
12,000 90.0%
9,000 80.0%
80.0%
10,000 70.0% 8,000 70.0%
8,000 60.0% 7,000 60.0%
6,000
6,000 41.3% 41.6% 42.3% 40.0% 36.1% 38.8% 39.1% 38.4% 50.0%40.0% 5,0004,000 30.7% 31.3% 32.0% 29.8% 26.9% 28.9% 29.4% 29.0% 50.0%40.0%
4,000 30.0% 30.0%
3,000
2,000 20.0% 2,000 20.0%
10.0% 1,000 10.0%
8,499 9,647 10,225 9,894 8,708 9,699 9,794 9,879 6,324 7,256 7,731 7,384 6,478 7,214 7,372 7,461
0 0.0% 0 0.0%
FY22 Q1 Q2 Q3 Q4 FY23 Q1 Q2 Q3 Q4 FY 22 Q1 Q2 Q3 Q4 FY 23 Q1 Q2 Q3 Q4
PAT PAT in (%)
PBT PBT in (%)
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Numbers are after eliminating non-controlling interest
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Q4 FY23 Standalone P&L
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| Particulars (In Rs Lakhs) | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% | FY23 | FY22 | FY 23 vs. 22 % |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 23,674.80 | 23,014.29 | 2.9% | 23,347.65 | 1.4% | 92,861.69 | 86,377.00 | 7.5% |
| Other income | 616.35 | 307.72 | 100.3% | 557.17 | 10.6% | 2,115.04 | 3,976.29 | -46.8% |
| Total revenue | 24,291.15 | 23,322.01 | 4.2% | 23,904.82 | 1.6% | 94,976.73 | 90,353.29 | 5.1% |
| Expenses | ||||||||
| Employee benefits expense | 7,170.31 | 7,072.06 | 1.4% | 7,194.42 | -0.3% | 29,488.28 | 27,030.38 | 9.1% |
| Finance costs | 174.34 | 163.13 | 6.9% | 169.15 | 3.1% | 666.64 | 662.40 | 0.6% |
| Depreciation and amortisation expense | 1,439.00 | 1,434.23 | 0.3% | 1,392.99 | 3.3% | 5,419.50 | 4,739.88 | 14.3% |
| Operating expenses | 4,061.17 | 3,888.85 | 4.4% | 3,977.73 | 2.1% | 15,756.41 | 13,919.75 | 13.2% |
| Other expenses | 1,997.67 | 1,681.69 | 18.8% | 1,782.83 | 12.0% | 7,091.17 | 6,416.53 | 10.5% |
| Total expenses | 14,842.49 | 14,239.96 | 4.2% | 14,517.12 | 2.2% | 58,422.00 | 52,768.94 | 10.7% |
| Profit before tax | 9,448.66 | 9,082.05 | 4.0% | 9,387.70 | 0.6% | 36,554.73 | 37,584.35 | -2.7% |
| Tax expense | ||||||||
| Current tax | 2,140.05 | 2,211.92 | 2,415.20 | 9,061.13 | 8,891.76 | |||
| Current tax expense of earlier years | (43.82) | - | (69.27) | (113.09) | (190.30) | |||
| Deferred tax | 195.96 | 60.12 |
(55.77) | 152.66 | (58.54) |
|||
| Net tax expense | 2,292.19 | 2,272.04 | 0.9% | 2,290.16 | 0.1% | 9,100.70 | 8,642.92 | 5.3% |
| Profit / (Loss) for the period | 7,156.47 | 6,810.01 | 5.1% | 7,097.54 | 0.8% | 27,454.03 | 28,941.43 | -5.1% |
| Earnings per share (In ₹): | ||||||||
| Basic | 14.61 | 13.93 | 14.49 | 56.07 | 59.23 | |||
| Diluted | 14.51 | 13.84 | 14.39 | 55.71 | 58.91 |
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Q4 FY23 Consolidated P&L
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| Particulars (In Rs Lakhs) | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% | FY23 | FY22 | FY 23 vs. 22 % |
|---|---|---|---|---|---|---|---|---|
| Revenue from operations | 24,923.87 | 24,318.39 | 2.5% | 24,357.23 | 2.3% | 97,182.72 | 90,966.75 | 6.8% |
| Other income | 788.12 | 425.04 | 85.4% | 707.97 | 11.3% | 2,681.30 | 1,727.44 | 55.2% |
| Total revenue | 25,711.99 | 24,743.43 | 3.9% | 25,065.20 | 2.6% | 99,864.02 | 92,694.19 | 7.7% |
| Expenses | ||||||||
| Employee benefits expense | 8,761.86 | 8,525.56 | 2.8% | 8,713.02 | 0.6% | 35,808.18 | 32,175.22 | 11.3% |
| Finance costs | 203.19 | 178.99 | 13.5% | 199.04 | 2.1% | 760.75 | 713.39 | 6.6% |
| Depreciation and amortisation expense | 1,639.43 | 1,568.61 | 4.5% | 1,550.57 | 5.7% | 6,025.00 | 5,162.17 | 16.7% |
| Operating expenses | 2,937.03 | 2,742.51 | 7.1% | 2,823.22 | 4.0% | 11,226.00 | 9,298.80 | 20.7% |
| Other expenses | 2,316.10 | 1,833.72 | 26.3% | 2,000.41 | 15.8% | 8,025.36 | 7,079.79 | 13.4% |
| Total expenses | 15,857.61 | 14,849.39 | 6.8% | 15,286.26 | 3.74% | 61,845.29 | 54,429.37 | 13.6% |
| Profit before tax | 9,854.38 | 9,894.04 | -0.4% | 9,778.94 | 0.8% | 38,018.73 | 38,264.82 | -0.6% |
| Tax expense | ||||||||
| Current tax | 2,280.01 | 2,391.61 | 2,539.31 | 9,543.21 | 9,762.42 | |||
| Current tax expense of earlieryears | (43.82) | - | (69.27) | (113.09) | (190.30) | |||
| Deferred tax | 182.12 | 118.88 |
(48.03) | 125.18 | (1.99) | |||
| Net tax expense | 2,418.30 | 2,510.49 | -3.7% | **2,422.01 ** | -0.2% |
9,555.39 | 9,570.13 | -0.2% |
| Profit / (Loss) for the period | 7,436.08 | 7,383.55 | 0.7% | 7,356.93 | 1.1% | 28,463.44 | 28,694.69 | -0.8% |
| Non-ControllingInterest | (25.04) | - | (14.80) | (61.39) | - | |||
| Profit attributable to Owners of the Company | 7,461.12 | 7,383.55 | 1.1% | 7,371.73 | 1.2% | 28,524.83 | 28,694.69 |
-0.6% |
| Earnings per share (In ₹): | ||||||||
| Basic | 15.23 | 15.10 |
15.05 | 58.26 | 58.73 |
|||
| Diluted | 15.13 | 15.00 |
14.95 | 57.88 | 58.41 |
25
Revenue Profile Q4 FY24
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Revenue Breakup
9.5% 10.5% 11.0% 100%
13.5% 15.0% 13.9%
77.0% 74.5% 75.1%
31-Dec-22 31-Mar-22 31-Mar-23
Quarter ended
Non-Mutual Fund MF-Non assets Based MF – Assets Based
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| Particulars | Quarter ended | Quarter ended | Quarter ended |
|---|---|---|---|
| 31 Dec ’22 | 31 Mar’22 | 31 Mar’23 | |
| AIF | 2.8% | 2.5% | 2.9% |
| CAMS Pay | 2.3% | 2.3% | 2.8% |
| CAMS REP | 1.8% | 2.3% | 2.0% |
| Others | 2.6% | 3.4% | 3.3% |
| Non Mutual Fund | 9.5% | 10.5% | 11.0% |
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Revenue (In ₹ Lakh)
2.5%
24,924
24,318 24,357
31-Mar-22 31-Dec-22 31-Mar-23
Quarter ended
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26
Revenue Profile FY23
Revenue Breakup
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9.8% 9.8% 10.1% 100%
13.3% 14.3% 13.7%
76.9% 75.9% 76.2%
31-Mar-21 31-Mar-22 31-Mar-23
Year ended
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Non-Mutual Fund MF-Non assets Based MF – Assets Based
Breakup of Non-Mutual Fund
| Particulars | Quarter ended | Quarter ended | Quarter ended |
|---|---|---|---|
| 31 Mar ’21 | 31 Mar’22 | 31 Mar’23 | |
| AIF | 2.6% | 2.3% | 2.8% |
| CAMS Pay | 2.5% | 2.2% | 2.6% |
| CAMS REP | 2.1% | 2.1% | 1.8% |
| Others | 2.6% | 3.2% | 2.9% |
| Non Mutual Fund | 9.8% | 9.8% | 10.1% |
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Revenue* (In ₹ Lakh)
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37.8%
6.8%
97,183
90,967
70,550
31-Mar-21 31-Mar- 22 31-Mar-23
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Year ended
27
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ESG
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Update on ESG Initiatives
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29
The publicly available CRISIL ESG score for the company is 58 considered as Adequate
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30
As part of the Environmental related initiatives the company partnered with an NGO - Environmentalist Foundation of India for renovating a lake with 18 acres of water holding. The renovation is complete.
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31
Environment
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We help combat climate change and environmental challenges by ensuring resource efficiency and reducing our environmental footprints. We operate through 281 offices, including one Corporate Office and six back offices. To achieve our environmental goals, we have stringent internal targets to reduce waste, water, and carbon emission and invest in renewable green energy.
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Replace
Reduce
-
Paper use is actively discouraged across the organization, Installation of lower energy LED lighting system and internal processes have been aligned to process Digital transformation for enhanced resource efficiency transactions through electronic submissions
-
Digital transformation for enhanced resource efficiency
-
Internal targets are to reduce waste, water, and carbon emission and invest in renewable green energy
Reuse & Recycle
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-
No hazardous waste is produced since CAMS is a service-based Company
-
Segregation of dry and wet waste
-
Computers, monitors, computer accessories, printers, projectors, and other such hardware that are under-utilized or have reached the end of useful life are managed by the Company’s e-waste recycling program, which includes handover to original suppliers or certified disposal vendors
-
Plastic waste is collected, segregated, and transported to Local Government agencies / for processing and disposal
The company partnered with an NGO to restore two lakes and create two urban forests. The restoration of these lakes is expected to directly influence the surroundings and ensure increased water percolation and enhanced ground water recharge. This project involved cleaning up of the water body, removal of invasive weeds, increase in water storage, establishment of strong bunds, inlet-outlet regulation, tree plantation and protective fencing. While plants are expected to turn the lake into a biodiversity hotspot, the urban forest will enhance the air quality, reduce water run-off and soil erosion, and absorb noise, dust, and heat from the region.
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Social
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As global citizens, we believe that we can thrive only when the communities in which we operate also thrive. We remain committed to impacting communities through initiatives that improve access to jobs, education, and training, protect the environment, promote people’s health and well-being, and encourage equality and care for the underprivileged.
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Customer-Centricity
-
Grievance Redressal Mechanism for customers
-
Interaction through email, mobile apps, face-to-face meetings on monthly basis to improve customer experience
-
Customer Satisfaction surveys are carried out periodically for enhancing customer satisfaction levels
-
The Company extensively educates the customers on data privacy and security via website, social media platforms and other digital solutions like mobile apps. CAMS focusses on enhancing customer experience through various digital solutions and technology upgradations
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Commitment to Community
-
Virtual learning enhances the school students’ capacity and improves quality during the pandemic through online mediums
-
Experimental-based learning through online platforms for underprivileged school students to respond to COVID-19
-
Senior Citizens who do not have children/relatives looking for support
-
Women self-help groups looking for entrepreneurial skills
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Support for Education of HIV- affected children
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Tree plantation to improve the green cover
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Social
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Commitment to Employees
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-
Grievance Redressal Mechanism for employees
-
The employees undergo mandatory induction training where the stakeholders are made aware of CoC, Human Rights, Company policies, insider trading
-
The Company also conducts refresher training through “WeLearn programme” to apprise the employees periodically
-
Focused training on Skill Development & periodic drills on Risk Mitigation
-
Employee well-being is the foremost priority : POSH committee, Communication, Accountability, Maternity benefits, Human Rights, and Training on Health and safety
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The Company has in place POSH policy, Whistle blower policy and Employee Safety policy applicable to all employees
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The grievance redressal mechanisms are available for the employees to raise their concerns. The Company provides opportunity for physically challenged persons to get profitable employment
-
Diversity & Inclusion : 14% representation of women on the Board, and the Turnover rate for women in FY22 is 27% which is higher than the previous year
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Governance
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We recognize ethics and governance to be of paramount importance. We are committed to maintaining the highest standards of governance in the conduct of our business and continuously strive to create lasting value for all our stakeholders. Since our inception, we have been building on our organization's foundation by continually enhancing the governance structures, policies, processes, and controls that support and promote accountability, transparency, and ethical behaviour. We remain steadfast in our commitment to creating and reinforcing a strong and healthy culture in which all employees feel respected and empowered to do what is suitable for our customers, communities, and shareholders.
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Regulatory Compliance Framework
- Proactively identify, assess, monitor, control, and report compliance in adherence to country-specific laws and regulations
Board Governance and its Committees
-
Representation and inclusion of Women in Board of Directors
-
Leadership directly through board level committees
-
Compliance ownerships are aligned with corporate objectives
-
Serve the interests of the Company and its shareholders
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Governance
Compliance, Risk and Internal Audit
-
The Company has extensive Information Security Management System in place for ensuring protection of the systems and safeguard information to avoid material financial impact
-
ISO 9001-2015 Certification
-
ISO 27001 Certification
-
Audit Committee of the Board of Directors reviews the reports of the Auditors at its periodical meetings, and to oversee & review the procedures and systems effectuating the policies
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Ethical Practices
-
CAMS Code of Conduct
-
The vigil mechanism & whistle blower policy encourages directors and employees to report the concerns on (but not limited to) illegal or unethical practices or behaviour, actual or suspected fraud or violation of the Company’s code of conduct or ethics policy
-
Employee Safety Policy
-
POSH Policy
-
Policy on Anti-Corruption and Bribery
-
The Risk Management Committee and Technology Committee of the Board periodically reviews the cyber security systems
-
Data Privacy Policy
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ABOUT CAMS
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CAMS – Business at a glance
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Technology-driven India’s largest registrar and Services 10 of the 15 largest Leveraged domain financial infrastructure transfer agent (“RTA”) of MFs[2] ; ~ 19 years average expertise, processes and and services provider to mutual funds (“MFs”) with an relationship with infrastructure to cater to mutual funds and other aggregate market share of 10 largest MF clients MFs, AIFs and insurance financial institutions ~ 69 %[1] companies Pan-India physical Established track record of Marquee shareholders, Experienced management network comprising delivering robust financial including Great Terrain team with average work 280 service centers results; Fastest growing (an affiliate of experience of over spread over 25 states and MF RTA with high RoE and Warburg Pincus), LIC & 27 years in a variety of 5 union territories EBITDA margins HDFC Ltd. financial services sectors
Notes: 1. Market share basis FY23 Q4 (3 Months Average)
2. Based on mutual fund average assets under management managed by clients and serviced by CAMS as per AMF
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CAMS – Mutual Fund Services Business
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Provides a range of technology-enabled infrastructure to mutual funds –
Involved through the life cycle of an account from account creation to processing transactions and redemption of the amount invested
Uniform Regulatory change
Service Best Practice Implementation implementation Business-Continuity Mechanisms
Aggregator
Manage High Volume Infrastructural Support Timely Operational
Business Enabler
of Data / Transactions Stability Launches of NFOs Integration
Extensive Data on Actionable High Capability of Innovative Product
Knowledge Partner
Investor Preferences Insights Processing Expertise Development
Service Requests
Call Centre Mail back / Front Office Transaction
Customer Care & Investor Services and Account
Services SMS Services Services Processing
Information
Recording of Recording of
Brokerage Distributor
Distributor Services Empanelled Brokerage
Computation Queries
Distributors Structures
Transaction Investor Risk
Transfer Agency Services Operations Compliance
Origination Services Management
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CAMS – Proprietary technology platforms and mobile applications for MF, AIF and PMS
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CAMS has developed and implemented various technology platforms and its technology driven infrastructure and services are integral to the operations of its clients
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CAMSsmart Go CORP
INVESTRAK
Business intelligence service Corporate investment portal
CAMServ mfCompass
Self-service chatbot for investors Allow MFs to sight funds real-time
my CAMS mf360
B2C app over 5 Mn registered users Proprietary investor service app
Dice CAMS Wealthserv
AMC interface for brokerage structure updation Digital onboarding of PMS investors
40
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Mutual Fund Services provided by CAMS
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CAMS is involved through the life cycle of an account – from account creation to processing to redemption; Also provides statutory statements, transaction origination, operations, investor and distributor services, risk management services and compliance services
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1 Transaction Origination and Processing
Reconcile bank accounts;
Accept transaction requests
Initial verification of Management of KYC Transaction processing and Send transaction confirmation Compute and pay brokerage
from investors (both paper-
transaction request requirements of investors payment services to investors and distributors fees; Report effect on unit
based and electronic)
capital
Front Office Back Office
2 Services to Asset Management Companies 3 Services to MF Investors 4 Services to Distributors
Record keeping and management Anti-money laundering services Periodic statements and alerts Distributor help desk
Reporting to govt. authorities Suspicious transaction reporting Assist with Queries / Service Requests Recording of distributors empanelled
Compliance with KYC regulations Compliance with scheme document Mail management, mail back services Recording & maintenance of brokerage structures
Compliance with SEBI regulations Management information reporting SMS / Online customer service Computation of various brokerage
Setting up of accounts Fee computation and administration Call center to address queries Claw-back of brokerages
On-boarding of intermediaries Push and pull services Addressing distributor queries
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41
Key Highlights
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Large and Growing Scalable
Mutual Funds Market 1 4 Technology Enabled Ecosystem
Our Mission… Your Growth
Integrated Business Model & Longstanding
Strong Focus on
Client Relationships in MF Services Business 2 5
Process and Risk Management
Largest Infrastructure and Services Experienced Management
3 6
Provider in the Indian MF RTA space and Board
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CAMS – Overview of Non-MF Services
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Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors
-
Market leader servicing over ~150 AIF / PMS / Wealth Serve Clients
-
Offers services such as creation of investor record, fund accounting services and reconciliation and creation of MIS and reporting systems
-
Alternative Investment Also offers intermediaries revenue management, investor service management
-
Fund Services 30-35% AIF industry growth projected between FY19-24[1] Manages end-to-end ACH transactions and ECS and services mutual funds, NBFCs and insurance companies Provides services through CAMSPay, which is a highly automated ECS or NACH platform
-
2 Electronic Supports periodical or adhoc payments (including receipt of funds from mutual fund investors through SIP accounts) Payment 38.0 Mn ECS and ACH registrations and transactions executed in Q4 FY23, it was 33.1 Mn in Q4 FY22
-
Collection CamsPay Digital transaction executed in Q4 FY23 is 5.3 Mn against Q4 FY22 was 2.9 Mn
-
~37% market share in insurance repository business[2] , with ~5.5 Mn policies held Branch operations, servicing policies, renewal premium collections Claims processing & Unclaimed Management, Demat of Policies and
-
Insurance other permitted support functions Services Assists with back-office operations as well as physical infrastructure and facility management functions
Note: ACH – Automated Clearing House. ECS – Electronic Clearance Services. 1. According to CRISIL Report. 2. Company Estimated as on 31[st] March 2023 (Industry data not available) 3. April 2020.
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CAMS – Overview of Non-MF Services (cont’d.)
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Over the years, CAMS has leveraged its domain expertise, processes and infrastructure to diversify its service offering to cater to a variety of other financial services sectors
- Verification and maintenance of KYC records of investors for use by financial institutions
Online services for intermediaries include verification of PAN card details, facilitate uploading new KYC data and entering data for new KYC KYC Registration applicants Agency (“KRA”) Also includes scanning and uploading KYC document and viewing and downloading KYC data maintained by KRAs (including CAMS) Owns, develops and maintains the technology solutions for MF services business & MF clients Technology team of 813 personnel[1] 5 Software Developed Investrak.NET, a scalable mutual fund transfer agency platform, among others Solutions
- Assists with website design and development, provides mobility solutions, performs trend analysis, business intelligence and analytics based services, etc.
Note: 1. As of March 31, 2023.
44
CAMS – Compliance and risk management architecture
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Relentless focus on systems and processes has allowed CAMS to become a trusted provider of services to its clients and other stakeholders
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Cyber
Compliance Security
Risk Regulatory
Assists MF clients with compliance Management Oversight ISO 27001:2013 certification for
with scheme documentation, KYC, information security systems
SEBI regulations, etc .
Provides risk management services to Several regulatory entities have
assist MF clients in conducting oversight over different parts of the
Cyber Security and Cyber Resilience
diligence of their investors business
Policy Implemented
Reporting to Government
Agencies and Regulators
Regulated by Several Authorities
Anti-Money Laundering Services
(SEBI, IRDAI, RBI, MCA, etc.)
Technology Committee of Eminent
Specialists to Review Processes &
Timely Fulfilment of Regulatory Systems
Requirements without Error Suspicious Transaction Reporting Periodic Inspections and Audits by
Various Regulatory Authorities
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45
Experienced Board of Directors
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Board of Directors
‒
Natarajan Srinivasan
Audit ‒ Dinesh Kumar Mehrotra
‒
Committee Vijayalakshmi Rajaram Iyer
Dinesh Kumar Mehrotra ‒ Sandeep Kagzi
Natarajan Srinivasan
Chairman & Independent
Independent Director
Director
‒
Nomination & Vijayalakshmi Rajaram Iyer
Remuneration ‒ Dinesh Kumar Mehrotra
committee ‒ Narendra Ostawal
Vedanthachari Srinivasa
Vijayalakshmi Rajaram Iyer
Rangan
Independent Director
Non-Executive Director
‒
Stakeholders Natarajan Srinivasan
‒
Relationship Sandeep Kagzi
‒
Committee Anuj Kumar
Narendra Ostawal Sandeep Kagzi
Non-Executive Director Non-Executive Director ‒
Risk Vijayalakshmi Rajaram Iyer
‒
Management Natarajan Srinivasan
Committee ‒ Dinesh Kumar Mehrotra
Anuj Kumar Corporate ‒ Dinesh Kumar Mehrotra
Managing Director Social ‒ Vijayalakshmi Rajaram Iyer
‒
Responsibility Anuj Kumar
‒
Committee Sandeep Kagzi
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46
Experienced Senior Management Team
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Experienced management team, with an average work experience of 27 years and a demonstrated ability to grow and diversify the business and innovate services
Anuj Kumar – Managing Director
Ramcharan Sesharaman – Chief Financial Officer
-
Joined the company in March 2016
-
Previously associated with Godrej & Boyce, Escorts Finance & IBM India
-
Joined the company in March 2020
-
Previously associated with Photon Interactive and Reliance Jio Infocomm
Syed Hassan – Chief Operating Officer
Ravi Kethana – Chief Platform Officer
-
Joined the company in March 2022
-
Previously associated with DXC Technology, Britannia Industries, Unilever
-
Joined the company in December 2019
-
Previously associated with Tata Consultancy Services and Wipro
Soumendu Sekar Ganguly – Chief Product officer, Head-New platforms
Manikandan Gopalakrishnan – Company Secretary & Compliance Officer
-
Joined the company in April 2017
-
Previously associated with Naukri, 99acres and Shiksha, and Sulekha
-
Joined the company in June 2011
-
Previously associated with BPL, Precot Meridian & SJK Steel Plant
Vinodh Chelambathodi – Chief Human Resources Officer
Vasanth Jeyapaul Emmanuel – CEO, CAMS Payment Services Private Limited
-
Joined the company in January 2022
-
Previously associated with Godrej, Flextronics, HCL, Capgemini, Polaris/Intellect and FSS
-
Joined the company in October 2017
-
Previously associated with Bennett, Coleman & Co, Agenda Net marketing
Vivek Bengani: CEO – CAMS Insurance Repository
Abhishek Mishra – Chief Risk Officer
-
Joined the company in March 2022
-
Previously associated with Edelweiss Tokio Life Insurance
-
Joined the company in 2[nd] January 2023
-
Previously associated with Accenture, GE, Washington Mutual Bank
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APPENDIX
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Corporate Structure
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Computer Age Management Services Limited
Mutual Funds Services, Alternate Investment Funds Services, Payment Services, Banking and Non-Banking Service Businesses
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100% 100% 100% 55%
CAMS Insurance Repository Services CAMS Investor Services Private CAMS Financial Information Services Think Analytics India Pvt Limited
Limited (CIRSL) Limited (CISPL) Private Limited (CFISPL)
100% 100% 54%
100%
CAMS Payment Services Private Think Analytics Consultancy Services
Sterling Software Pvt Ltd (SSPL)
Limited Fintuple Technologies Private Limited Pvt Ltd
Think360 AI, Inc (USA)
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49
History/Milestones
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-
The certificate of registration was issued to
-
Our Company was our Company was CISPL was incorporated incorporated as Our Company was upgraded and a fresh Our Company was CIRSL was incorporated on February 13, 2012; Computer Age issued a certificate of certificate of registration Our Company was issued a certificate of on May 12, 2011; and and Management Services registration as a as Registrar to an Issue issued a certificate of registration dated CIRSL had received in CISPL was issued a Private Limited and Registrar to an Issue and Share Transfer Agent registration dated June January 31, 2007 by principle approval of certificate of received a certificate of under category II, dated under category I, dated 1, 2006 by SEBI to act as SEBI to act as a IRDAI to carry on registration dated June incorporation from the December 24, 1993 by July 22, 1995, was issued a depository participant depository participant business as an 29, 2012 to carry on the RoC on May 25, 1988 SEBI by SEBI to our Company for NSDL for CDSL insurance repository business as a KRA
1995
2011
-
CIRSL was issued a certificate of registration dated July Our Company was Certification of 31, 2013 by IRDAI to converted into a public carry on the business as limited Company and Listed in BSE on Registration for CRA Services an insurance repository; received a fresh October 1[st] , 2020 and certificate of RBI registration for Franklin Templeton Go CAMS CRA Go-Live Live
-
Our Company acquired 100% stake in SSPL, incorporation from the RoC on September 27, account aggregator Services Set up office in GIFT City Acquired majority stake in Fintuple Technologies CAMS Acquires which provides CFISPL was Great Terrain acquired 2019; and Great Terrain Incorporation of Account aggregator Pvt Ltd majority stack in technology support to incorporated on 37.50% stake in our acquired 6.03% stake in CAMSPay (payment launch Launched innovation Think360 AI our Company September 26, 2016 Company our Company aggregator services) MF Central launch lab at IIT Madras 2013 2016 2018 2019 2020 2021 2022 2023
50
Awards and Accolades
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Our Company was awarded ‘Best App’ for ‘ my CAMS’ app under finance category at the Global Mobile App Summit and Awards
2015 CIRSL was awarded ‘Best Newcomer Award’ at Asia Insurance Technology Awards
CIRSL was awarded ‘Best Service Provider’ award in ‘Feet on Street Collections’ category by ICICI Prudential Life Insurance Company Limited at Tatva Annual
Meet
2016
Our Company was awarded SME Business Excellence Awards in mid-corporate IT and IT-enabled services category by Dun and Bradstreet and RBL Bank Limited
Our Company was awarded ‘Best App’ for ‘ my CAMS’ app under finance category at the Global Mobile App Summit and Awards
Our Company was awarded ‘Best use of digital media/platform’ in the mutual fund category for ‘ my CAMS’ app at the Drivers of Digital Awards
2017 Our Company was awarded ‘Best App’ for ‘myCAMS’ app under finance category at the Global Mobile App Summit and Awards
CIRSL was awarded ‘Best Newcomer Award’ at Asia Insurance Technology Awards
CIRSL received the Celent Award for CIRSL’s iCare services
20 most promising capital market solution provider
Our Company was awarded ‘Special Mention for Use of Digital Media in the Mutual Fund Category’ for ‘ GoCorp ’ app at the Drivers of Digital Awards 2018
2018 Our Company was awarded ‘Best Application of Technology’ for ‘ my CAMS’ app at 4th edition of CX Strategy Summit and Awards
CIRSL was awarded ‘Best Service Provider’ award
CIRSL was awarded ‘OSCAR’ by TATA AIA for outstanding support in DJFM 2019
2019 CIRSL was awarded ‘Best Service Provider’ award in ‘Mandate Registration and Insurance Repository’ category by ICICI Prudential Life Insurance Company
Limited at Tatva Annual Meet
SSPL was awarded “20 Most Promising Capital Market Solution Providers – 2019” by CIO Review India
Our Company was awarded “Highly Commended – Harnessing the Power of Technology” at the Adam Smith Awards Asia 2019
SSPL was awarded for “Digital and Fintech Solutions” at the SME Business Excellence Awards 2019 by Dun & Bradstreet and RBL Bank Limited
2020
Recognized as the Star of FinTech in Tamil Nadu (highest category recognition) by Tamil Nadu Government
CAMSPay won the prestigious FINNOVITI 2021 Award
2021
CAMS Insurance Repository Services limited has been recognized as ‘Feet on Street (FOS)-Best Service provider’ by ICICI Prudential Life Insurance company
limited at the 15 [th] Annual TATVA annual awards 2021
2022 CAMS won the NASSCOM cloud innovator of the year
2023 CAMS Wins LACP vision for Annual Report
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51
Shareholders’ Information
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Stock Data as on 31[[st]] March 2023
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Stock Data as on 31 [[st]] March 2023
Shareholding Pattern (%)
Market Capitalisation Shares Outstanding
9,955.01 Cr 4,89,93,596
Promoter
19.92%
Free Float Scrip Symbol / Code Others
7,971.97 Cr CAMS/543232 35.96%
Top Institutional Holders Market Capitalisation
INR 9,955.01 Cr
Housing Development Finance Corporation Limited
HDB Employees Welfare Trust
Life Insurance Corporation of India & LICP&GS Fund
Seafarer Overseas Growth & income Fund
Smallcap world Fund , Inc 33.34%
Arisaig Asia Fund Ltd 6.94%
Goldman Sachs Funds & Goldman Sachs Trust 3.84%
Insurance Cos FPIs
Goldman Sachs Emerging Markets Equity Fund
IIFL India Private Equity Fund
MFs
J P Morgan Funds
Acsys Investments
Vanguard Emerging Markets Stock Index Fund
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52
Glossary
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| Term | Description | Term | Description | |
|---|---|---|---|---|
| AAuM | Average Assets under Management | Kotak | Kotak Mahindra Capital CompanyLimited | |
| ACH | Automated ClearingHouse | Kotak Mahindra AMC | Kotak Mahindra Asset Management CompanyLimited | |
| Aditya Birla Capital | Aditya Birla Capital Limited | KRA | KYC Registration Agency | |
| AIF | Alternative Investment Fund | KYC | Knowyour Customer | |
| AMC | Asset Management Company | MCA | Ministryof Corporate Affairs | |
| AUM | Assets under Management | MF | Mutual Fund | |
| B2C | Business-to-Customer | MIS | Management Information Systems | |
| c. | Approximately | NACH | National Automated ClearingHouse | |
| CEO | Chief Executive Officer | NBFC | Non-BankingFinancial Company | |
| DDT | Dividend Distribution Tax | NSE Investments | NSE Investments Limited | |
| DNS | Domain Name System | Nomura | Nomura Financial Advisoryand Securities(India)Private Limited | |
| DSP Investment Managers | DSP Investment Managers Private Limited | PAN | Permanent Account N umber | |
| EBITDA | Earnings before Interest,Tax,Depreciation and Amortization | PAT | Profit after Tax | |
| ECS | Electronic Clearance Services | RBI | Reserve Bank of India | |
| FI | Financial Institutions | RFI | Regulated Financial Institutions | |
| FII | Foreign Institutional Investors | RM | RelationshipManager | |
| GDP | Gross Domestic Product | RoE | Return on Equity | |
| Great Terrain | Great Terrain Investment Ltd | RTA | Registrar and Transfer Agent | |
| HDFC | HousingDevelopment Finance Corporation | SBI Fund Management | SBI Fund Management Private Limited | |
| HDFC AMC | HDFC Asset Management CompanyLimited | SEBI | Securities and Exchange Board of India | |
| HDFC Bank | HDFC Bank Limited | SIP | Systematic Investment Plan | |
| HNI | High Net worth Individual | SM | Sales Manager | |
| ICICI Prudential AMC | ICICI Prudential Asset Management CompanyLimited | SMS | Short Message Service | |
| ICICI Securities | ICICI Securities Limited | SSPL | SterlingSoftware Private Limited | |
| IIT | Indian Institute of Technology | TB | Terabyte | |
| IRDAI | Insurance Regulatoryand Development Authorityof India | TER | Total Expense Ratio | |
| IT | Information Technology | UT | Union Territory |
53
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THANK YOU
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Mr. Anish Sawlani, Head - IR +91 72990 07973 Computer Age Management Services @ [email protected] Limited (CAMS) Mr. Rajesh Agrawal +91 99674 91495 Investor Relations [email protected] @ Orient Capital
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