Central Depository Services (India) Ltd
NSE:CDSL
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Central Depository Services (India) Ltd
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Ladies and gentlemen, good day and welcome to the Q1 FY '23 earnings conference call of CDSL India hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. [Operator Instructions] Please note that this conference is being recorded.
Please note that CDSL does not provide specific revenue or earnings guidance. Anything said on this call, which reflects CDSL's outlook for the future or which could be constructed as forward-looking statement must be reviewed in conjunction with the risks that the company faces.
I now hand the conference over to Mr. Anshuman Singh from Axis Capital Limited. Thank you, and over to you, sir.
Yes. Thank you, Jacob. Good morning, everyone. On behalf of Axis Capital, a very warm welcome to the Q1 FY '23 conference call of CDSL India Limited. We have the management team of CDSL represented by Mr. Nehal Vora, MD and CEO; Mr. Girish Amesara, CFO; Mr. Sunil Alvares, MD and CEO, CDSL Ventures; Mr. Ramkumar, Chief of Business Development, Operations and New Projects; Mrs. Nayana Ovalekar, Chief Regulatory Officer; Mr. Vinay Madan, Chief Risk Officer; Mr. Swaroopkumar Gothi, VP; and Mr. Nilesh Kittur, AVP.
Without further ado, I would hand over the floor to the management for their opening remarks, post which we can open the floor for Q&A. Thank you, and Nehal sir, over to you, sir.
Okay. Thank you, Anshuman. A very good morning and welcome everyone. I hope each one of you and your loved ones are safe and healthy. Thank you for joining us today to discuss CDSL's financial results for the first quarter financial year '22-'23. As in the previous quarters, we have posted a detailed financial presentation on website for your reference.
I'm joined by the CDSL Group's leadership team. We are happy to present the first quarter of the new financial year. Our primary focus in the first quarter this year remained on maintaining an organic and sustainable growth and providing diversified services. Our services for DPs, investors and other market participants, staying on the promise of making it easier to access markets independently, and improve the experience of all market participants. This is a result of being innovative and using technology to deliver a unique experience.
During the quarter, the number of active companies with CDSL as on June 30, 2022, stood at about 18,798, an increase of 12% increase from the number of active companies as on June 30 of 2021. Further, the value of securities in DEMAT custody with CDSL as on June 30, '22 stood at about INR 33 lakh crores. This is an increase of about 6% in the value add as on June 30, '21. CDSL added 55 lakh beneficiary owner accounts, taking the number of beneficiary accounts to 6.85 crores at the end of the quarter with a market share of CDSL at about 71%, compared to 64% in Q1 of '21-'22. The growth has been possible because of our focus on technology and CDSL's reach, which covers about 98% of the pin codes in India through over 20,700 service locations.
Having said that while the Indian securities market has increased remarkably over the past few years, only a small minority of the population, 7% have DEMAT accounts, signifying the great potential for expansion in this area. Simply put, India is a long way from being fully penetrated by the securities market and a large portion of the population still can have access to the securities market.
We have been following this path for a long time and the technology has been continually evolving to fit the needs of our various clients and the investors. We are working with the regulator and various other market infrastructure institutions to build various platforms for all market participants and we take a cue from the Honorable Prime Minister's speech earlier this month during the launch of the new Digital India Platform. The emphasis on technology will enable us to remain part of this transformation, which India is witnessing.
We aim to leverage our reach and continue our long-term strategy of investing in our technology infrastructure to ensure our investors and customers enjoy best-in-class experience and security, while staying consistent with our values are being convenient, dependable and secure. As India celebrates the 75th year of independence, while we find ourselves at a crossroad where the decision we make today will shape the future we build tomorrow, further reflect on our past efforts that we have spent years constructing this future that is defined by our steadfast commitment to a better India, our shared objective to empower every Indian through financial independence and the opportunity to build a better economy for all Indians.
Considering this a long-term goal at CDSL is not only to grow individually but to grow collectively as responsible contributors to the growth of our nation. We will also need to learn how to serve our nation in ways that are more effective to achieve the same, CDSL as a market infrastructure institution will continue to deliver on our promise of making the securities market a convenient and secured place.
Finally, I would like to thank -- finally, I would like to take this opportunity to thank all our stakeholders, regulators, investors, issuers, the Registrar and Transfer Agents, Depository Participants, partners, associates and employees, who have played an extremely important role in the growth of our company.
Now I request our CFO, Shri Girish Amesara to take you through our financial performance.
Thank you, Nehal. Good morning to everyone. On a Y-o-Y performance, the consolidated total income for the quarter ended June 30, 2022, has increased by INR 16 crore, which is 12% increase to an amount of INR 145.49 crore, compared to INR 129.79 crore for the quarter June 2021. The net profit on a consolidated basis for the quarter is achieved at INR 57.61 crore as against net profit of INR 63.99 crore for June 2021.
The total income on a standalone basis for the quarter ended June '22 has increased by INR 35.83 crore, which is 29% increase to an amount of INR 157.52 crore as against INR 121.69 crore for the quarter June 2021. The net profit on a standalone basis for the quarter ended June '22 is at INR 89.10 crore as against INR 73.30 crore for the quarter ended June '21.
Now I shall request Shri Sunil Alvares to give an update about the operation of our wholly-owned subsidiary, CDSL Ventures Limited. Thank you. Over to you, Sunil.
Yes. Thanks, Girish. Good morning everyone and thanks for joining this investor call of CDSL. So far, as CDSL Ventures is concerned, the operational income actually down by 2% as compared with Q1 FY '22. The operational income in Q1 FY '23 was INR 37.67 crores as compared to INR 28.11 crores in Q1 FY '22.
Other income took a substantial hit, Q1 FY '23 income was just INR 23 lakh as against INR 2.74 crores in Q1 FY '22. The total income was down by 10% to INR 27.90 crores as against INR 30.85 crores. The profit before tax for this finance -- this quarter was 1.4 -- sorry, INR 14.17 crores as compared to INR 18.84 crores last year.
So far, as the core business is concerned, in terms of KYC creation, we added 30 lakh new KYC records as compared to 29.37 lakhs in the -- in Q1 FY '22, taking the overall KYC records to 4.61 crores as of June 2022. So far, as KYC fetch was concerned, there was a marginal drop by 6% in line with the total market condition. In terms of KYC interop fetch, okay, it was higher by 42% to 3.52 lakh as compared to 2.44 lakh last year. In the RTAs space, we have added 30 companies taking the total number of companies to 870. Similarly, from GST filing, we were higher by 14% to -- at 55 lakh -- sorry, at, yes, 55.48 lakh as compared to 48.86 lakh.
With this, I open the floor for questions and will be very happy to take any questions from the investors. Thank you.
[Operator Instructions] The first question is from the line of Prakash Kapadia from Anived Portfolio Managers Private Limited.
A couple of questions from my end. Sunil, if I look at the KYC business, the subsidiary business, post 2 years, we have seen a 2% revenue decline. You mentioned in your opening remarks, the addition, fetches were less. So is the revenue declined due to some pricing mix or some competitive pressure or is it just lesser fetches from the mutual fund industry, if you could give us some sense?
It is a combination of all. There is pricing pressure because of the competition, as well as lesser fetches. Because so far as the KYC business is concerned, around 80% of the income would come from fetches.
Okay. So because that volume is less, you are saying that affected the...
Absolutely, yes.
And this KYC fetch would be the largest contributor to our subsidiary business, right? Because the others are still relatively smaller.
Yes. They are in a very nascent stage, but we -- but they should...
To add to what Sunil is saying -- This is Nehal here -- is that there is an overall market sentiment also existing in this quarter. There has been muted volumes in the overall market picture. So obviously, that kind of derives its business from there. It is a function of an overall market participation.
Right. But Nehal, on the other side, the depository segment has still grown 26%. I couldn't get the PPT on the website or the stock exchange filing. So if you could give us some sense of despite capital markets being volatile, despite the volumes -- cash volumes being lower, what has driven this revenue growth for us? Or if Girish has the numbers handy in terms of the key revenue items, that will give us more clarity.
Yes. So first of all, the website -- CDSL website has the presentation, just wanted to clarify that. I think maybe the NSE is facing some issue in kind of uploading. Our team is in touch with the NSE. Second is CDSL has a function of 2 principal sources of revenue. One is, obviously, the market-related revenue and second is, basically the annuity which we receive from companies. So in overall, both of them and also [ the IPOs ] and the corporate actions, et cetera. Which is in a way not directly related to markets, but it is connected to markets.
So it's a function of both these that which are strictly directly related to the market volumes and some which are kind of an annuity based and that is why the culmination of CDSL's revenue mix is a combination of both these factors, and therefore that has led to a 28% increase.
Okay. And on the employee cost, there was a INR 10.86 crores payout to subsidiaries. So what was that and to which subsidiary and was there some milestone to that? And even if I exclude that from the base, employee costs are up almost 25%, 26%. So is it due to the annual bonuses and hikes, which are captured in this quarter kind of a cost for employees?
Yes. It's -- basically, it is not to subsidiaries. It is to the -- It is on account of the bonuses and the hikes, which have happened, and we had -- it is linked to the financial performance of the previous year. So it's all linked as per what is our internal policy. So it's a [ fallout ] of the bonuses and the increments based on the financial performance of last year.
Okay, okay. Understood. And given that most of this is there in the base, the addition to employee costs should be much lower, right, on a balance of...
No, it's a combination. We are even in an expansion mode, so there are regulatory responsibilities, which are also increasing. And our prime focus as an MII is to ensure the regulatory responsibilities is of prime focus to ensure that the trust in the system is being built, technology also is our second focus and whilst we build the technology, it's also the right key people and we've all seen that there have been huge amount of attrition all around, especially in the technology areas, but also in the other area. So to get the right people, the right expertise, you need to ensure that you are adequately compensating.
Right, right. Okay. Understood. And lastly, the other income is fallen by more than 50%. What would be the M2M impact or the hit we would have taken because of rising interest rates, if you could quantify, Girish?
Yes, I'll ask Girish.
So if you compare our quarter-to-quarter, last quarter, we had an M2M income of -- investment income of almost INR 11 crore. This year, we have closed at INR 4.75 crore. So the difference you can consider as M2M hit.
[Operator Instructions] The next question is from the line of Madhukar Ladha from Elara Capital.
I wanted to -- see, the presentation is not available on the CDSL website. I've been trying to [ tell it ] but it's just not there. Can I get the revenue break up in terms of annual issuer charges, transaction charges, and IPO and online data charges for the quarter? That would be helpful.
Second, one thing I wanted to understand that the standalone net profit is about INR 89 crores and the consolidated net profit is at about INR 57.6 crores. I can see that there's INR 9 crores of loss from associates coming in. So that would still mean a difference of about INR 23 crores, so -- which is a negative item. So is the subsidiary sort of contributing a negative amount of about INR 23 crores, is that right?
So one is -- I'll ask Girish to answer that. There has been some -- but anyway the website -- CDSL website has have got it confirmed by my team. It is [ obviously ] if you refresh the website, if -- the presentation is there on the CDSL website. I'll just ask Girish to answer that.
So first to answer your question on the standalone profit, we -- in this quarter, we have received dividend of -- dividend from our subsidiary, CDSL Ventures Limited, of INR 41 crore. That's the reason standalone profits are higher and this dividend get eliminated on consolidation. So consolidated profit is lower. And...
Understood. That explains it. Yes.
Yes. Answering your breakup of income, we have achieved annual issuer income of INR 45.23 crore in this quarter, transaction charge of INR 40.81 crore, KRA -- KYC charges at INR 22.54 crore, IPO corporate action income of INR 14 crore, cash income of INR 4.5 crore, E-voting income of INR 2.84 crore. This breakup covers almost 90% of our operating income.
Understood. I just got the presentation right now on the website. I'll just go through it.
The next question is from the line of Sanketh Godha from Spark Capital.
Sir, we see that the annual issuance charges have substantially increased in the current quarter to almost INR 45 crore, which last year -- in every quarter was in the range of INR 20 crore to INR 29 crore. Sir, just wanted to understand what led to this growth? And how do we see this number to play out for subsequent quarters, so it should broadly remain in the same range going ahead, too?
So this is more linked to what are newer companies getting added to the pool. Also, the newer investors coming into the pool. It's a combination of this, which kind of has led to an increase in the annual issuer peak. And so the reply to that is this.
Okay. Sir, given it is more sticky or annuity in nature, so this number should remain true for subsequent years also -- subsequent quarters, too, for the year because I believe, billing probably happens at the start of the year.
Yes. We don't give any future guidance.
Okay, okay. Okay, sir. But sir, can we get this breakup of INR 45 crores? I think you have given the numbers in the past, too, broken down into listed and unlisted companies?
One minute, I'll ask Girish to give that.
So income from unlisted company is INR 1.47 crore in this quarter.
Okay, okay. And sir, one more data-keeping point. I believe you said the transaction income was closer to INR 40.8 crore. So again, just wanted to understand how pledges behaving -- pledging companies behaving compared to the numbers what we have delivered in the past? So to the extent I remember, it is -- it was closer to INR 4 crores in last quarter. So can we get a similar number in the current quarter, sir?
So income from [ pledge ] is INR 3.41 crore in this quarter.
Okay. Perfect, sir. And just again on the same question, on the employee cost, if I see lot of the one-time performance bonus type of thing. Still, that number at around INR 150 crores seems to be higher compared to the last -- sorry, INR 15 crores seems to be higher compared to quarterly run rate of INR 12 crores to INR 13 crores of previous 4 quarters.
So even if I adjust for the inflation and all those things, it seems to be still on the higher side. Sir, just wanted to understand, is that -- the employee growth is more because of the new initiatives or the hikes have been very strong because of the really strong last 2 years? How do read these numbers basically?
So here see, we need to understand that CDSL is on a growth trajectory and 2 principal costs are technology and employees. We need the right people and we need to expand our employee teams to kind of garner and able to achieve the increased growth on a sustainable basis both from a business standpoint, the technology standpoint and operations standpoint. And lastly, but most importantly, from a compliance and regulatory standpoint.
So it is -- I think what is important to state is that, as the revenue is growing, the employee costs will also have to kind of in some form or the other to ensure that it is able to hopefully sustain, but growth is expected.
Got it, sir. Finally, can you give data provision costs? [ That is how much should be ].
For what you want that data points?
Data provision cost.
INR 3.41 crore.
INR 3.41 crore. Okay, sir.
The next question is from the line of Ravin Kurwa from ICICI Securities.
My question is related to employee costs indeed. So what will be the quarterly run rate which we can expect going forward? And sir, some sense on FY '24 also? And secondly, are other expenditures also rising sharply? So if you can help us to understand which line item has led to the increase in the cost?
So the future run rate, we don't give any future guidance. So that I'll have to kind of pass as for you to kind of judge. I have given you very transparently, the reason why this has led to an increase and it is in sync in terms of the overall performance of the company. In terms of the other expenses, I'll ask Girish to give the break up.
So first, employee cost has increased by INR 13.91 crore, depreciation has increased by INR 2.5 crore, debtor provision has increased by INR 75 lakhs, technology cost has increased by INR 3.22 crore. So [ what amount, ] all this, if you look at these numbers, this gives the breakup of the incremental costs that we have incurred in this quarter.
[Operator Instructions] The next question is from the line of [ Santosh Kumar Keshri from Keshri Wealth ].
Am I audible?
Yes.
Yes.
I just wanted to ask you 2 questions. One is that about RTA, Sunil said that there are 837 companies that CDSL Group is serving in terms of RTA. So if you can give a sense of revenue that is there and the profitability and where do we stand in the market fetch in order of -- among RTA companies? Do you stand in top 5, top ten, if you can give that? And after that, I'll come to the second question.
See, so far as the RTA business is concerned, right now, we are pursuing only on the unlisted companies. So to that extent, we will not be able to benchmark ourselves as -- within the top 5 or top ten because we are not handling any listed public company and typically, the RTA revenue is about INR 1 crore per annum.
Okay. So it's very less as of now.
That's the idea.
Yes. So any reason that we are focusing only on unlisted companies? Like we have such an expertise in serving larger market participants, bigger companies, we have all the technologies here with us. We can serve as well the bigger companies and be a better service provider in the marketplace, being more [ trusted ]. So any reason that we are limiting ourselves only to unlisted companies?
Yes. Because you need very specialized team for this and it is in terms of the graduated approach, which we are trying to achieve. That our principal form of business and within CVL is of the KYC Registering Agency and also, serving basically unlisted space. So we want to ensure that our core competence remains there. And as Sunil mentioned, the RTA business is also a very specialized business. So as we gain the traction and experience, we may think about it in future. But as of now, our focus remains here.
Okay, okay. And lastly, my second question. Had there been no special bonus to employees in the current quarter, what would have been the hike in the employee cost, if you can give that number?
We don't generally disclose the internal workings if -- on a, basically, what if analysis. This has actually happened. So that is the actual growth this quarter. Anyway, bonuses are payable at the end of the financial year every year and it is a function of the financial performance of the company.
Okay. So just one more thing here. So is this something that is paid to all the employees across the Board or it is given all to the senior management?
It is given to all the employees.
The next question is from the line of [ Pratik Shah ], an individual investor.
Yes. So Nehal sir, just wanted to ask, so as we all know that we have recently launched our India's first Bullion Exchange. So just want to ask like, is there any role for CDSL in that? And can we expect some revenue from this current quarter once the operation starts?
Yes. I think that's a very good question. CDSL was the pioneer in terms of setting up the Depository at GIFT City. But in line with the overall ecosystem, a consortium of BSE, NSE, MCX, NSDL and CDSL was formed to own the gold ecosystem, which comprises of the exchange clearing corporation and the depository.
Now therefore, the CDSL IFSC has been sold to that consortium. CDSL is now a part of a 20% owner, an equivalent 20% owner of the entire consortium. So it [ owns ] the entire ecosystem. And therefore, again, this is kind of a future guidance, so I'll kind of refrain from saying whether what will happen in future. But the expectation and the intent behind is that we contribute to the entire ecosystem rather than only with the Depository space in the GIFT City, which is a new and upcoming area, which was recently inaugurated by the Honorable Prime Minister.
So like CDSL will definitely play a major role in this Bullion Exchange and other operations, right?
Yes, yes. Absolutely.
[Operator Instructions] The next question is from the line of Madhukar Ladha from Elara Capital.
So if I look at the online data charges, which is mainly the CVL business, that is down on a Q-o-Q basis from about INR 31 crores to INR 23 crores. I think partly it is lower fetches, what are the fetch numbers? I think you had said it in the opening remarks. But there were 2 new numbers, I missed that. And how much has that dropped year-over-year and quarter-over-quarter? And I believe there's also some pricing pressure and competing technologies as well in the KYC space. So can you elaborate a little bit on that in terms of what other kind of pricing pressure that we are seeing and with some sort of narrative around how the business is evolving over there that will be helpful?
I'll ask Sunil to answer that.
Yes. So in Q1 FY '23, the number of fetches were 6.58 lakhs as compared to in Q1 FY '22, it was 17.06 lakhs. So if I compare this financial quarter to largest year's financial quarter, it is down by about 6%. Typically, if you see the overall DEMAT and broking accounts since the last quarter has been down. So since our business is intrinsically linked to the number of DEMAT and broking accounts, obviously, the number of fetches has gone down, but the number of records created have been higher by [ above ] 5%.
So far as the business is concerned, the SEBI has recently come up with the KYC amended regulations, where the KRAs would be playing a larger role in terms of validating, et cetera, KYC records. So considering this, we are here to stay.
And maybe what would that larger role entails? Can you describe that a little bit more in detail?
So I will take that question. Is -- in overall, the market infrastructure institution ecosystem and KRAs is a part of that entire ecosystem. So this is in line with the -- building the anti-ecosystem where -- as to kind of ensure higher financial inclusion, at the same time, convenience and security but [ they're ] enhanced at a centralized level. So as more and more participants are expected to join the cold -- the securities market, that is supposed to be a part of that entire story.
The next question is from the line of Deepan from Trustline.
So firstly, wanted to understand about the annual issuer charges. So the increase as you mentioned was due to higher companies addition. So can you please mention what kind of company additions happened during past quarter?
I'll ask Girish to answer that.
So initially, we had told that the increase in annual issuer income is a combination of increase in the investor accounts...
Okay.
So it's a kind of a consolidated thing of -- the number of companies as well as the number of investors. As of now, we don't disclose the number of companies, which have been added in terms of the annual issuer.
Okay, okay.
So we [ assume ] it as a consolidated.
Okay, okay. Sure, sir. And the price increase in annual issuer charges business has been due for a long time. So are we in discussion with SEBI? And is it expected anytime sooner?
Yes. I mean it is overall in terms of -- this will be -- have to be a joint initiative both the Depository. So there are numerous things which are happening simultaneously, so that we will see as the year progresses as to how it's to be handled.
Okay, okay, okay. So other than GIFT City, so any update on other newer businesses, what we are working on?
There is a Gold Spot Exchange in the local market also, which the circular has been issued. So CDSL is very much a part of that entire ecosystem.
[Operator Instructions] The next question is from the line of Abhay, an individual investor.
Yes. Just 2 questions. One, the absolute INR 10.96 crores of payment to employees, do we envisage any payments in any other quarter in this year, sir, as of date?
There is going to be the employee cost every quarter, right, because salary cost, which happens every day, and every month.
Yes. No. But in addition to the [ sum ] -- in this INR 10.96 crores is sort of annual special payment or a bonus or whatever, so do we envisage looking at...
Normally, that is paid at the end of the financial year. So in terms of -- as of now, it will go as per what is that routine salary cost and then based on the performance, there is performance appraisal done at the end of the year.
Yes. Sir, these costs were not very high in the first quarter of last year. So as you are saying, the reason is that, your annual performance has been very good in last 2 years, therefore, the amount is -- the amounts are large. And obviously, there's attrition. So what is it based on? Is it based on annual profit growth or is it based on annual absolute level of profit in a year? What is the basis of payment based on, sir?
It's a combination of various factors, financial performance, profitability, also how has the growth been. And it is -- SEBI has laid down under [ these ] regulations as to how compensation on the broad themes that needs to be construed and done. So it's completely in compliance with those broad factors which have been put in place.
Okay. So just as a guideline, do we take this INR 11 crores paid in the first quarter this year to be some sort of a benchmark and assume similar payments in future first quarters?
We don't give any future guidance, so I'll not able to answer that.
The next question is from the line of Ravin Kurwa from ICICI Securities.
We meet again, sir. And I have one more question that was in the transaction revenues, which we have booked in the quarter. So what will be the pledge income related to [ this ]?
I'll ask Girish.
INR 3.40 crore.
INR 3.40 crore. [ And what will ] be then in last quarter?
It was -- you're asking last quarter means March or you are asking June? [ INR 3.40 ] crores.
March.
March was [ okay ] around that only.
[ INR 3.40 crores ]. So sir, is there any slowdown in the pledge, which we are seeing post Q1 FY '23? Because markets have peaked out in March or something like that [ are known ]. So post that, are we seeing any reduction in pledges, which is effectively taking place right now?
I think the numbers are there for you to see. So you can make your calculations...
No, I'm asking post Q1 FY '23.
That's I am saying that you will have to see the numbers of the first quarter, compare it with the previous quarter in terms of whether there is a slowdown. We don't give any future guidance. So you will have to kind of see it in that particular spirit.
And sir, what will be the total number of pledges if you can help us with those numbers?
We generally don't provide these numbers. It's a consolidated value in terms of that revenue, which is given out.
The next question is from the line of Amit Chandra from HDFC Securities.
So my question is on the technology spend. So now you have mentioned that there is indeed focus on enhancing the technology and we have increased the investments significantly there on the technology. So is there any specific areas where we are trying to spend or we are trying to upgrade or in basic [ capacity ]? And where we can see -- and on the technology spend flattening or maybe some light projects are still remaining or the process of -- I just wanted a sense that where we can see the technology spends stabilizing?
So there is a continuous process of every evolution because regulation is also getting evolved with newer products, newer processes, newer controls in place. We are building a sustainable long-term solution so that it is flexible enough to kind of incorporate all these changes both from a regulatory standpoint and also from a business standpoint, make it more and more easy as well as efficient for the customers to kind of access the market.
So it'll be difficult to segregate between what is new and what is old. But it is kind of making the entire technology system more robust as well as more flexible and nimble to kind of cater to the changing requirements both from a regulation standpoint as well as from a business standpoint. So it's a continuous process of kind of reviewing our technology needs and trying to bring in line with whatever is the sophisticated technology systems of the world.
Okay. And sir, if you can provide the total number of employees that we have in the standalone entity, and this one, CDSL Ventures Limited and how that number of employees have increased over the last 2 years?
See, as of now -- as on June quarter, we had the count is 250 and in March, we had a count of 246.
Okay.
Last year June, the count was around 119.
Okay, okay. Okay. Thank you. And sir, in terms of the new initiatives, mostly on the insurance repository side and the commodity repository side, what is the progress now? Any like developments you can highlight?
So we are kind of ready with our systems in terms of the commodities. We are talking about the Gold Spot, right?
No, no. So no -- the Commodity Repository Limited, CCRL and CIRL.
Yes. So that continues to evolve. I think there is some changes in the Act, which are pending with the Honorable Parliament. But we are continuously evolving ourselves to be in sync with whatever are the changing requirements and as soon as that Act is passed, then that will kind of change the entire way of doing thing significantly.
Okay. And in terms of the revenue contribution, how much is the insurance repository contributing? Can you provide that number, please?
Yes, it is -- I'll ask Girish. It is not significant as of now, but I'll ask Girish.
It is less than 1%.
No, sir, in the other source of revenue like E-voting, which was -- and AGM, which was a significant...
So you're taking about E-voting?
Yes.
Okay. E-voting income is INR 2.84 crore in this quarter.
Okay. And so in terms of the AGMs also because the last year, it was COVID year, so the virtual AGMs were like preferred. So in this year, we can see like [ drop ] in that revenue, if you can quantify what was the contribution of AGM revenue in the last year numbers Y-o-Y, if you can give that E-voting and AGM?
As of now, I think there is an option given for holding the meetings through VCs. So we don't see -- we will have to wait and see as to how it culminates by 30th September.
Mr. Chandra, may we request you to return to the question queue for any follow-up questions? The next question is from the line of Kunal Thanvi from Banyan Tree Advisors Private Limited.
2 questions. One -- the first one was a bookkeeping one. If you can help us with that cash basis revenue for this quarter. And second was on our transaction income. So if we look at overall cash volumes in the market and the settlement volumes, there has been a sharp fall in last 2, 3 months looking at the market situation. However, when we look at CDSL's transaction income, the fall has been not that bad. Like competitively, it has been resilient. So what should one read into it? Is it because of the rise in the pledge business or any other factor that played in that respect, if you can help me -- us with that?
First question, I'll ask Girish to answer.
So cash income is INR 4.5 crores in this quarter.
Sure.
And the second question is -- the reply to that would be that, it's a combination, it's a -- a lot of the newer investors coming. And I think the delivery base volume is what there has been there. It's a combination of your pledge/repledge, the delivery-based volumes, which contributes the transaction charges. The entire way of doing things has significantly been modified. So there are multiple legs, which are there in the entire market cycle. So you'll have to see that in that sense.
So your initial remarks that is pledge/repledge, that's part of it. But it's also delivery-based volumes, et cetera. And the newer people coming in, which is leading to a higher level of delivery-based volumes.
Sure. No, so when -- even if I look at the delivery-based volumes, right, which is the settlement volume that SEBI gives on their website, the fall for this particular quarter for both depositories has been very higher, like, if I look at even say CDSL, the fall has been now 36% on a Q-o-Q basis. Whereas when we look at the revenues for transaction income, the fall is 22% for CDSL, right, on a Q-o-Q basis. So the differential is like quite large. So is it like a part of, say...
It's the pledge/repledge system. I think that must be one of the principal factors. There are other ancillary factors, but this is one of the system.
Sure. Got it. And last one if I can squeeze is on the annual issuance charges. Sorry, I joined the call late. If you can help us understand the sharp increase in the annual issuer charges. However, more number of companies getting at it. But when I look at our last 4, 5 quarters number, we can figure out that, the addition has been there for a while now. Like we have been adding decent number of companies every quarter. What has changed in this quarter, particularly, both on a Q-o Q and a Y-on-Y basis? Because the jump has been very sharp. Like is that billing cycle comes in this quarter enhance these numbers but how should one read into it?
Yes. So the billing normally happens in the first quarter of every year. So you should look at it from that perspective. And quantum is a function -- you've joined late, this question was asked earlier. So we've already replied to this. As a functional newer companies joining and the number of newer investors, which have also joined the ecosystem, the combination of that which leads to the increase in the annual issuance.
Sure. So there is no impact of pricing as of now, it is just the volume that have...
That's right.
[Operator Instructions] The next question is from the line of [ Narendra Porwal ], an individual investor.
[Foreign Language]
[Foreign Language]
[Foreign Language]
[Foreign Language] What I'm trying to tell you is that whatever is the end of the month numbers, that only comes on the first of each month. We don't update on a daily basis. That is the standard operating procedure. And that is followed by both the NSDL and CDSL. CDSL has been extremely prompt in ensuring that its numbers are always put out on the first of the month without fail. So if you are facing some issue or you want to see where, then you can send us an email, we'll send link, et cetera, where you need to look at it.
We move to the next question. The next question is from the line of [ Anup Biswas ], an individual investor.
I also joined late. I'm questioning on the issuer charge -- annual issuer charge. So is annual issuer charge. [Foreign Language]?
[Foreign Language] See, this will have to be a joint proposal, has to be approved by SEBI. And generally, the overall trend is, not to increase the charges all over. But however, it is in line with whatever is with the inflation, et cetera. See, SEBI will take its own call as to what it has to take into consideration, all the conditions of the market before it really proposes.
Yes, sir. Last thing is in the 1995?
[Foreign Language] 2015.
The next question is from the line of [ Pratik Shah ], an individual investor.
So Nehal sir, in the -- at the end of last quarter, we have declared a INR 15 dividend, right? So is this 60% of operating profit as we have a fixed dividend policy? So just want to -- confirmation on that.
Yes. Girish -- I'll ask Girish to answer.
It is 60% of the net profit and it would be paid after the shareholders approved it.
Just on the previous question. I've just got an update from my team that some days, the numbers are getting updated by second or third also, some -- on some of the days. That is basically the process of internal reconciliation sometimes is done. So we will try to move towards coming on the first. So thank you for pointing it out.
In the interest of time, that was the last question. I would now like to hand the conference back over to the management for closing remarks.
Now I just wanted to ensure that all of you remain safe -- continue to remain safe. There are a lot of health hazards, which keep on being as news. So ensure that your family remains safe and secure. And our intent of CDSL is to ensure that we continuously build India as a new kind of an ecosystem and want to partner in the growth of the entire ecosystem. That's been our focus from a technology standpoint. Thank you.
Thank you. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us. And you may now disconnect your lines.