Central Depository Services (India) Ltd
NSE:CDSL
| US |
|
Fubotv Inc
NYSE:FUBO
|
Media
|
| US |
|
Bank of America Corp
NYSE:BAC
|
Banking
|
| US |
|
Palantir Technologies Inc
NYSE:PLTR
|
Technology
|
| US |
C
|
C3.ai Inc
NYSE:AI
|
Technology
|
| US |
|
Uber Technologies Inc
NYSE:UBER
|
Road & Rail
|
| CN |
|
NIO Inc
NYSE:NIO
|
Automobiles
|
| US |
|
Fluor Corp
NYSE:FLR
|
Construction
|
| US |
|
Jacobs Engineering Group Inc
NYSE:J
|
Professional Services
|
| US |
|
TopBuild Corp
NYSE:BLD
|
Consumer products
|
| US |
|
Abbott Laboratories
NYSE:ABT
|
Health Care
|
| US |
|
Chevron Corp
NYSE:CVX
|
Energy
|
| US |
|
Occidental Petroleum Corp
NYSE:OXY
|
Energy
|
| US |
|
Matrix Service Co
NASDAQ:MTRX
|
Construction
|
| US |
|
Automatic Data Processing Inc
NASDAQ:ADP
|
Technology
|
| US |
|
Qualcomm Inc
NASDAQ:QCOM
|
Semiconductors
|
| US |
|
Ambarella Inc
NASDAQ:AMBA
|
Semiconductors
|
If you don’t study any companies, you have the same success buying stocks as you do in a poker game if you bet without looking at your cards.
Utilize notes to systematically review your investment decisions. By reflecting on past outcomes, you can discern effective strategies and identify those that underperformed. This continuous feedback loop enables you to adapt and refine your approach, optimizing for future success.
Each note serves as a learning point, offering insights into your decision-making processes. Over time, you'll accumulate a personalized database of knowledge, enhancing your ability to make informed decisions quickly and effectively.
With a comprehensive record of your investment history at your fingertips, you can compare current opportunities against past experiences. This not only bolsters your confidence but also ensures that each decision is grounded in a well-documented rationale.
Do you really want to delete this note?
This action cannot be undone.
| 52 Week Range |
827.767
1 600.95
|
| Price Target |
|
We'll email you a reminder when the closing price reaches INR.
Choose the stock you wish to monitor with a price alert.
|
|
Fubotv Inc
NYSE:FUBO
|
US |
|
|
Bank of America Corp
NYSE:BAC
|
US |
|
|
Palantir Technologies Inc
NYSE:PLTR
|
US |
|
C
|
C3.ai Inc
NYSE:AI
|
US |
|
|
Uber Technologies Inc
NYSE:UBER
|
US |
|
|
NIO Inc
NYSE:NIO
|
CN |
|
|
Fluor Corp
NYSE:FLR
|
US |
|
|
Jacobs Engineering Group Inc
NYSE:J
|
US |
|
|
TopBuild Corp
NYSE:BLD
|
US |
|
|
Abbott Laboratories
NYSE:ABT
|
US |
|
|
Chevron Corp
NYSE:CVX
|
US |
|
|
Occidental Petroleum Corp
NYSE:OXY
|
US |
|
|
Matrix Service Co
NASDAQ:MTRX
|
US |
|
|
Automatic Data Processing Inc
NASDAQ:ADP
|
US |
|
|
Qualcomm Inc
NASDAQ:QCOM
|
US |
|
|
Ambarella Inc
NASDAQ:AMBA
|
US |
This alert will be permanently deleted.
Central Depository Services (India) Ltd
You don't have any saved screeners yet
Ladies and gentlemen, good day, and welcome to the Q4 FY '22 Earnings Conference Call of CDSL India Limited. This call is hosted by Axis Capital Limited. [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 viewed in conjunction with the risks that the company faces.
I now hand the conference over to Mr. Anshuman Singh from Axis Capital. Thank you. And over to you, sir.
Yes. Thank you, Margaret. Good morning, everyone. On behalf of Axis Capital, a very warm welcome to the Q4 FY '22 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 Limited; Mr. Ramkumar, Chief of Business Development, Operations and New Projects; Mr. Amit Mahajan, Chief Technology Officer; Mrs. Nayana Ovalekar, Chief Regulatory Officer; Mr. Vinay Madan, Chief Risk Officer; Mr. Swaroop Kumar Gothi, VP; and Mr. Nilesh Kittur, AVP.
Without further ado, I would like to hand over the call to the management for their opening remarks. Post which, we will open the floor for Q&A. Nehal, sir, over to you.
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 -- fourth quarter and the full year financial year that has ended on March 31, 2022. As in the previous quarters, we have posted a detailed presentation on our website for your reference. I'm joined by the CDSL Group's leadership team.
Our company has continued progress on its strategy. That is the acceleration of core operating income and providing ease of doing business to all market participants. As a result, we saw a year-on-year growth momentum continuing in Q4, with an improved earnings quality as compared to Q4 of the previous financial year.
For the financial year '21-'22, we delivered a strong growth of 65% on the stand-alone profits, which stood at INR 264 crores. We are happy to report that following these results, our Board of Directors have approved a final dividend of INR 15 per equity share for FY '22, subject to the approval of the shareholders, which is the highest ever in the history of the company.
During the year, in February '22, we crossed the milestone of 6 crore demat accounts. As on March 31, '22 the total number of demat accounts in India stood at 8.97 crores. Out of which, CDSL accounts for about 70%. Furthermore, the number of active companies with CDSL as on March 31, '22, stood at about 18,268, which is an 11% annual increase from the number of active companies as on March 31, '21. The value of securities in demat custody with CDSL as on March 31, '22, stood at about 37 lakh crores, which is an increase of about 35% from the value held as on March 31, '21. All these numbers and statistics are an encouraging testimony of the success of our efforts of making technologies simple and trustworthy for all market participants.
In summation, as mentioned in our earlier interaction, our aim remains to provide services that empower and protect every investor, making him truly self-sufficient. I am proud of how consistently CDSL has been able to deliver its transformation journey, with the inclusion of EDIS, or the Electronic Delivery Instruction Slip, margin pledge system and other regulatory changes over the past year, the entire financial system of the Indian securities market has grown to be convenient, dependable and secure.
Moreover, to empower investors to make informed decisions to be aware of their rights and to be safe while being part of the Indian securities market, the CDSL Investor Protection Fund in association with SEBI and other market infrastructure institutions and DPs have conducted 178 investor awareness programs during FY '22. Finally, I would like to take the opportunity to thank all our stakeholders, regulators, depository participants, investors, issuers, and other market participants and employees for their constant faith in us.
Now may I request, our CFO, Shri Girish Amesara, to take you through our financial performance. Over to you, Girish.
Thank you, Nehal. Good morning to everyone.
On an Y-o-Y performance, the consolidated total income for the quarter ended March 31, '22, has increased by INR 38 crores, which is 34% increase over previous quarter, to an amount of INR 148 crore compared to INR 110 crore for the same quarter previous year. The net profit after -- on a consolidated basis for the quarter ended March 31, '22, has increased by INR 26 crore, which is a 51% increase, to an amount of INR 78 crore as against INR 51 crore for the previous year's same quarter. The total income on a stand-alone basis for the quarter ended March 31, '22, has increased by INR 24 crore, which is 28% increase, to an amount of INR 119 crore as against INR 85 crore achieved during same quarter previous year. The net profit on a standalone basis for the quarter ended March 31, '22, has increased by INR 17 crore, which is 39% increase, to an amount of INR 58 crore as against INR 42 crore for the previous quarter same year.
Now I request Shri Sunil Alvares to give you an update about the operation of our wholly owned subsidiary, CDSL Ventures Limited. Thank you.
Over to you, Sunil.
Yes. Thank you. Good morning, everyone. On the CDSL Ventures side, the company continued to do well on the KRA creation, we added 1.5 crore new accounts, which was a growth of 127% over the previous year, where we had added 65 lakhs in the previous year. On the Fetch side, we added around 3.38 crore record refresh as compared to 1.5 crore last year, which was a growth of 125%.
On the CKYC front, we processed 32 lakh records as compared to 13 lakh records, which was a growth of around 143%. On the RTA front, we added 175 companies, taking the total number of RTA companies to 840 as compared to 665 in the previous year. On the GST front, we processed 2.33 crore records as compared to 2.6 crores on the previous year, which was a marginal drop of 27 lakh records or a drop of 11%.
Basis this, the total KRA records in CVL as of 31st March is 4.3 crores. And the income so far as CPL is concerned, for the period FY '22, the operational income was INR 134.93 crores as compared to INR 71.9 crores for FY '21, which was a growth of 88%. The total expenses increased by INR 18.24 crores from INR 32.65 crores in FY '21 to INR 50.90 crores in FY '22, which was an increase of 56%. The profit before tax has increased by 89% from INR 51 crores in FY '21 to INR 96.32 crores in FY '22. The total profit after tax for CVL for FY '22 was INR 73.09 crores as compared to INR 39.28 crores in FY '21, which was a growth of INR 33.82 crores or a growth of 86%.
With this, now I open the floor to the questions of the participants.
[Operator Instructions] The first question is from the line of Prakash Kapadia from Anived Portfolio Managers.
Congrats to the team on the good performance. A couple of questions from my end. If I look at the annual employee cost of INR 50 crores, does it include variable or salary increase? Or will it get reflected in FY '23? That's my first question. The second question is, other income has declined 4% for the year. So if you can quantify the mark-to-market impact on fair value due to our investments.
And lastly, of the 4.3 crores KYC records, we've seen a huge jump. Sunil did mention in his opening remarks about Fetch and KYC. So that's a huge jump from 2.84 crores records last year. So if you could give some color on market share gain in terms of SIPs, new folios. And is it more fetches? So if you could give some qualitative flavor, that would be helpful.
So on the first question, last year's bonus is included in this year's financial year. And this year's bonus will get included in next year's. And I'll just hand it over to Girish to give you further details on the first and second question. And after that, Sunil can take the third question.
So on the employee cost, on an average, we have given an increment of 9.5%. And roughly, the cost of increment promotion and employees who have joined during the year and those who were left is around INR 6.5 crores. And in previous year, in financial year ended March '21, we had a reversal of expenditure pertaining to variable pay of '19/'20 amounting to an amount of roughly INR 2.5 crore. So if that expenditure was not there, our increase would have been only INR 6.5 crore and of provision with respect to actual valuation. So this explains the increase in the employee cost. And in terms of mark-to-market gain, the whatever decrease that you see, it is pertaining to mark-to-market valuation.
Yes. So if you have that figure ready in terms of what is the absolute number, if that's readily available due to rising interest rates. Is it...
So if you compare last year's treasury income and this year treasury income from our presentation, you will notice the difference. And difference is only on account of mark-to-market.
Okay. Okay. So it's fair to say we'll have the employee cost increase starting Q1 onwards in this financial year?
So the normal increment promotion that we may give would be there. And as I explained during '21, there was a reversal. Because of that, that year, expenditure is showing less.
Sure. Understood.
And Sunil, if you can answer the third question.
Yes. On the market share for the KRAs, currently, the figures of none of the KRAs are published in the public domain. So we really wouldn't know exactly what is the market share. And the second question is, what amount of accounts Fetch attribute it to mutual fund, et cetera? Again, that is -- would not be known because the fetches happen both by AMC as well as by brokers who opened broke income demat account. And also, these demat accounts have take credit of mutual fund unit. So it's very difficult to give you any breakup on that.
Okay. And Sunil, you did mention Fetch side, there were 33.8 million records. What was that KYC record number, if you could just repeat that?
On the Fetch side, we had 3.38 crore fetches, yes.
Right. And that you said was 125% increase on a year-on-year basis, they are only KYC?
Sorry?
On the KYC side also, there was a number which you mentioned in the opening remarks.
On the creation side, yes, that was 1.5 crore as against 65 lakhs for the previous year.
Okay. Versus 65 lakhs. Fine. I have some more questions I'll join back the queue. And congrats to Nehal for the Best CEO Award.
Thank you. Thank you so much.
[Operator Instructions] The next question is from the line of Madhukar Ladha from Elara Capital.
So I have a few questions. First, just continuing on the earlier participant's question on employee costs. So I just wanted to clarify my understanding. So this year, net-net, we see on a running basis, INR 6.5 crore increase in employee costs for FY '23. And this probably does not take into account the change in bonus. So versus FY '22 -- I mean FY '22, bonus will come into FY '23. So the difference in variable pay between FY '22 and FY '23 will also impact employee costs in FY '23. So what would be that amount? Because that would be sort of the approximation for next year's employee cost. Will I be right on it? So Girish, if you could answer on that.
So just to clarify. What I had said back, on an average increment promotion and employees, those who have joined during the year, and less the net cost increase due to that was around INR 6.5 crore. Now this amount also included the variable portion which has been provided in this financial year. And what I told was that in previous year, in March '21, there was a reversal of variable pay off around INR 2.5 crore. That has reduced the expenditure of previous year. That's the reason this increase is showing a 22%. So...
So this was not for FY '23...
Expenses are accounted on an accrual basis.
Okay. Okay. So I thought that the -- okay, I understand where you're coming from. And for FY '23, how much would the variable be higher? So for FY '22, how much is the variable higher than FY '21?
These are forward-looking statements. I don't think we'll able to answer this.
No. I mean, for FY '22. So that will get accounted for in FY '23, right?
These are all forward-looking statements. Once the...
Also, that has not yet been decided, you mean to say?
Means it is in the process of getting decided and finalized. So we're not able to give those numbers right now.
Okay. Okay. Okay. Got it, got it. The other thing -- so I noticed that last couple of months, if you see, our share in incremental demat accounts has come off a little bit. So any color on what is happening in the market?
These are all market dynamics. I don't think it has come off. It is ranging -- it ranges in that particular range. And I think it is in sync with that. So I don't know how you made that comment that it has come off.
No. In the sense that if I look at incremental demat accounts for March '22, and yes, March '22, then that has -- that is March '22 and '23. So we were like in the 85% to sort of 90% range in most of last year. But in Feb and March, we see that sort of drop off to below 80%. So is there something incremental to read on? Or is it just sort of...
These are all market dynamics. I don't think we will able to put any specific reason. I think our -- and I have said this earlier in many investor calls, the focus of the management team more than the numbers is to provide a seamless platform, like an infrastructure. We are a financial infrastructure company. So to ensure that it's seamless and creates that value add and then leave it to the market to gauge, which is a better value proposition. So our intent is not to worry too much about numbers going up or down. Important thing is to ensure a seamless financial platform.
Okay. So the other question I had was on the cost slide which you have included. So there is a regulatory cost line item. And so is this just the contribution to the investor protection and education fund? Or is there anything more on this more in this as well?
So regulatory costs consist of amount that is required to be paid to investor protection fund, fees that we are supposed to pay to SEBI and the incentives that we are supposed to pay to DPs based on SEBI circular. These are the 3 main component. Out of which, IPF is the largest contributor.
Okay. Okay. And the others on an annual basis, how much would that be? Just to get a idea, just to get a sense.
Others in the sense, you mean...
Apart from IPF, the other 2?
So IPF would be 2/3 of total expenditure.
IPF would be 2/3 of total. Okay. Understood, understood. And sir, I understand on the KYC side, when we do Aadhaar-based KYC versus the SEBI way of doing KYC, which -- the 4 agencies, other KRAs fall, there is a difference in economics. So can you explain what the difference is? So I believe we get about INR 30, INR 35 per Fetch in the KRA methodology versus the Aadhaar-based KYC, those amounts are different. So can you just explain the economics a little better?
See, in which way you have to do a KYC through the KRA. And for creation, we charge INR 20, and for Fetch, it is INR 35. Aadhaar-based KYC is one of the ways of adding to the KRA KYC. So you -- so the KYC form ask for a lot of information. The information which is fetched from Aadhaar, apart from that, there are other information also which is added. And then the record is pushed into the KRA.
[Operator Instructions] The next question is from the line of Kunal Thanvi from Banyan Tree Advisors.
Congratulations, Nehal, for the award that you won. You certainly deserved it. My question was, from a longer-term perspective, like when we look at CDSL and the depository as a business as a whole, last 2, 3 years have been phenomenal, with the retail participation going very high. And the same was true for all the markets globally. Now -- but if you see what has happened recently is that the retail participation is coming off in global markets, especially with the way, say, operating investors have been believing in the last 6 months, there's certainly a moderation.
Now if the similar trend was to happen in India with retail participation moderating or coming down, then certainly, it will have a short-term impact on depository business because of the cyclicality. Wanted to understand how do we look at it from 3 to 5 year perspective in terms of cycles? And secondly, what are the other businesses that we kind of feel could somehow negate any adverse or elongated slowdown in the retail participation over the next 2 to 3 years? Yes. That's my first question.
So I think basically, the market participation is something which is going to have an impact on the entire market infrastructure institution space, it's stock exchanges, depositories and clearing corporations. We are -- if you see, our revenue streams are basically twofold. One is the issuer income. And second is the market participants, the DPs, transfers which they pay to us as fees. So one is kind of really an annuity, which ensures that the company has a steady flow of revenue.
And second is kind of a market-driven income. The way I see it is, and this is strictly my personal view, because at CDSL, we're not able to give a view on the future. But since you asked me on the trend, the way I see it is that, today, we had about only 7% to 8% of the population has participating in the securities markets. As an -- so as we move forward, the technology is going to play a huge role in connecting the dots and giving access to a lot of investors in the remote part of India and to the other cities which they have not been able to do because it is the ease of doing business.
And therefore, as the participation grows, you're going to have more and more people. Also, India is a young population. So a lot of them are going to come into the income range where saving is going to become more market-driven as now the government guaranteed schemes are becoming far and few. So for their own savings, they have to come back to a market-driven products. And that is going to obviously increase the participation in the securities market as -- or is expected to increase the participation in the securities markets.
The second part is that as the start-up culture in India is growing, more and more companies will need to access the securities markets to raise their share capital. And that's going to come out with newer IPOs. We are going to have the LIC IPO coming in the next 1 or 2 days. And there are others which are expected in the pipeline. So more and more companies are going to come in into the securities market fold. And that will have an impact on the overall secondary market also in terms of the volumes.
And the third is there are new products which are coming in, for example, gold and other precious metals. So these are all the newer assets which are going to come in with now the commodities markets, both the derivatives markets and the spot markets being regulated by a single regulator. And that is the securities regulator also.
So there is going to be the transformation of using the reforms of securities market into the commodity space also. So these are some of the newer assets which will come in. And then there could be an interplay which is happening. Also, the mutual funds are coming out with newer types of schemes and products. So that is also what is expected to probably increase over a period of time, the participation in the securities market.
Sure. And then you see new products, you may be like gold, precious like the commodities also coming on the demat for the way they are for the securities and with mutual funds coming with multi kind of scheme. We have liquidity in those products. Got it. Sure, makes sense. And any update on the...
[Operator Instructions] The next question is from the line of Prayesh Jain from Motilal Oswal.
Congratulations on a great set of numbers. And congratulations, Nehal, for the Best CEO Award. 3 questions from my side. Firstly, could you throw some light on the transaction charges? My understanding is that was to be revised upwards. So what is the status on that?
Secondly, on the technology costs, they seem to be growing linearly and they've been rising consistently. Is there a variable element there? And how should we see this going ahead? And lastly, from a more business perspective, do you see any impact of or any opportunities coming in from the account aggregator framework would benefit CDSL in any form? Those would be my 3 questions.
So your first question is about the revision in the transaction charges. So that's something which has to be jointly done by the depositories. We've had COVID years, so obviously, there has been a general pushback in any increase in charges overall. So we'll see an opportune time and see what is the sense of regulator in terms of whether they should be increased or not, and then we will take a call on that. The second is -- your second question.
On the technology costs.
Yes, the technology costs. So I think we are finally applied technology company. And technology and human resource are going to be the 2 principal costs for this company going forward. But we need a specialized human power as well as specialized technology. And technology is going to be the key driver, because though it has been increasing linearly over the last 2 or 3 years, the revenue has kind of not increased on a linear scale. It is kind of in an exponential scale.
And that is one of the key drivers that the -- it allows a lot of people to participate into the entire fold, entire depository system and the securities ecosystem, bringing in a lot of trust into the entire way of doing things. So a person from the remotest corner of India receives his securities and money in -- on a T+2 basis on a consistent basis, which is a huge kind of a flip in building the trust. So I think we need to kind of continuously invest in our technology because the scale is growing.
As I said earlier, we are only about 7% of the population. And the important thing is that our technology is being built in a manner so that it is basically scalable. So if the volumes grow, we are easily able to increase the -- really the infra in it. And the security angle also is a very important part. So these are some of the important components of our business which needs to be continuously invested.
And your third question, on the account aggregator. It will have to be seen. There has just been an announcement. We'll have to see the exact details. But yes, there is going to be an overall interplay happening between the various asset classes. So it's expected to kind of have a more participation of those people in the country who have not been traditionally in the securities market space, but in the other markets, like the insurance or the banking, et cetera. And that kind of an interplay may lead to or could lead to some increased participation also.
My question was more on -- the last part, my question was more on the, will CDSL be a financial information provider in any form?
So that's why I said that it is too early to say anything because we have to see what the details are, and then kind of assess and what shape and form it will come out finally. And then we will kind of assess. But our intent is to ensure that we provide a seamless platform. And our intent will be to continue providing that platform in whichever form.
The next question is from the line of Paresh Sangani from Club Millionaire.
Nehal, congratulations on the CEO award, to you and your entire team. You guys deserve it. Now I have 3 questions in my mind, Nehal. First and foremost is, we find that the details of the insurance policy, the electronic insurance policy as well as the warehouse receipts are missing in the presentation this time. So request if that could also be provided on a quarterly basis. And I also wanted color on that, in terms of how is that business progressing and what are the key variables for the insurance policies and the warehouse receipts to kind of take traction. That will be the first question.
Okay.
You want -- yes.
Yes. So you can just give me all the 3 questions so I kind of answer.
Great. Yes. The second one was is in terms of, Nehal, we've been speaking last couple of years about having all the financial assets in one place, right, through the demat account. So any other product category that could be part of the demat account? For example, postal deposits or any government bonds for that matter. Any discussions on that area because it's been a promise that we have been having for quite some time? And the third one is, Nehal, how is the traction on the digital e-signatures? It's been maybe 3 or 4 months that have rolled out. What is the kind of monthly run rate are we getting that? How is that shaping out as well?
Okay. So on the first one, on -- the first question was -- on the insurance policies, it's -- I think it's a product of the future. And any reform in the market requires that kind of mind by the requisite people who are participating. So insurance traditionally has been a paper-based kind of product. And now it's slowly moving from a paper based to a e-product. However, it is not made compulsory. It's made optional. So I think once there is a critical mass, which moves then probably the policymakers and regulators would think of kind of making it only the e-way of doing things rather than a paper-based way of doing things. So we will see that as we go forward. I'll -- is it not part of our presentation, CCRL, CRL?
No. The numbers have not been put out in the presentation for some reason.
Okay. So I think I'll just check with my finance team as to what we can, what permitted, et cetera, and based on that. But these are products of the future, both the commodities repository as well as the insurance repository. The numbers may not look too big at this stage, but our intent is to kind of continuously invested in the products of the future. And there is a kind of an integration happening between the security space and the commodity space and basically the insurance space. So I think now with really Aadhaar and Pan linkage happening, that becomes a common field across all these asset classes.
And that becomes an important component to kind of link up various financial products. This is kind of even answering your question on the other one where all financial products. So from a technology standpoint, we are equipped to kind of add all the financial products, be it banking, insurance, pension, et cetera. Very recently, we have worked with the pension regulators. And a part of our consolidated account statement now includes both the pension as well as the securities in coming as a single statement. And that is something which I think is being worked upon. Policy makers are actively engaged in kind of taking this forward.
But obviously, the nuances of each product, the nuances of each market will have to be taken into consideration before the single platform can be taken forward. But there is a broad policy movement because there are 2 finance ministers which have kind of announced in their finance bill speech. That single demat is something which they would be kind of wanting to take forward. So I think now kind of the building blocks are there with the PAN-Aadhaar linkage and see how that takes forward.
The third question is on the CVL. So I'll ask Sunil to kind of take the question.
So far as eSign is concerned, we have just started the operation. So the figures really in terms of run rate, et cetera, and insignificant. So to give you a perspective is that, do we got the approval a couple of -- I mean, quarters back? But do we actually went live with Aadhaar-based online eKYC test a couple of months back. So we have just started operations, and I think the figures are really insignificant because even if you see in the income, it is just 0.08 -- I mean, about INR 8 lakhs, which is very, very small, right? So I hope that answers your question.
Yes. I was just looking at in terms of what is the run rate on a monthly basis, in terms of the number of clients signing up, a number of transactions that we are kind of creating for new signature.
No. That's what I said. See, this has just started off. We are in the process of speaking to getting them signed. And there also -- there is also a process at their end where they are pro integrate their APIs into their software, test it and then start operation. So it's not that I get approval, and it starts out immediately.
[Operator Instructions] The next question is from the line of Franklin Moraes from Equentis Wealth Advisory.
So just wanted to understand, like if you see the last 6 months, we have seen continuous increase in the number of the accounts getting added, but just with respect to this particular quarter on a sequential basis for the transaction revenues, we have seen a flattish kind of a growth. So considering -- I mean, the markets were a bit subdued. But considering that new additions have happened, the expectation was that we would have seen at least some bit of an increase on a sequential basis. So just wanted to understand why is there a flattish growth?
Yes. So I think it's a earlier function of markets. And that transaction charges, I'll just check with Girish's. Both the IPO as well as the secondary market, right?
Yes.
So if you see the IPOs, that the last -- the third quarter had a more a bigger number of IPOs coming in, in that, which kind of led to higher transaction charges. But -- and also, the situation, circumstances, both outside India especially, basically the geopolitical circumstances, has led to a muted participation. And people are basically a wait-and-watch policy. So whilst the market remains where it is, the participation is kind of easing up. And that is, I think, a function of markets, that it kind of -- you're going to have more or less.
So the intent and the focus is that have as many people joined the securities market ecosystem and provide that seamless value addition. So whenever they wish, they will be able to kind of participate seamlessly. And secondly is have newer products. So you have multiple points on which they would want to access, and thereby increasing their participation. So it is more of a long-term play rather than a quarter-on-quarter comparison is what our focus and intent has been.
So also, like just on a -- for example, on a trailing 12-month basis, what -- for the accounts that are coming in on a 12-month basis, what percentage would their contribution be in terms of the transaction charges?
We don't give these numbers out. And these are something which is, again, very difficult to accurately measure, also, in case if we did give out, but these numbers are not giving out.
But sir, just to understand, on a trend basis, is that ratio kind of increasing as the number of accounts keep getting added? Is that percentage increasing?
So it is difficult to come to a conclusion, it's because of the accounts being added or because of the markets being bullish or because of more people wanting to participate in various other products, like mutual funds, which they may be having demat transactions. Or it's because of the pledge mechanism which has been put in place. So it's a combination of various factors. It's difficult to really come to a firm conclusion, that it's because of A particular factor or B particular factor. It's like a culmination of various factors which leads to whether this increase has taken place.
[Operator Instructions] The next question is from the line of Ravin Kurwa from ICICI Securities.
Sir, I just wanted one number from your end. What will be the online data charges for Q4 FY '22 and the revenue trend?
I'll ask Girish to answer that.
So online data income is INR 119 crore.
INR 119 crore. Is it for Q4 FY '22?
Sorry?
For Q4.
No. Sorry. Sorry, this you wanted...
This is an annual number? Yes.
Yes. It's the annual number. Quarter is INR 31 crore.
INR 31 crore. Yes.
The next question is from the line of Pavan Kumar from RatnaTraya Capital.
Sir, I was just checking the NSE cash volume data. And the last quarter, there has been a fall by around 15% on an year-on-year basis, but transaction charges for us has remained relatively stable. So what am I missing in the sense is there something else I should be figured -- I should be actually factoring?
No. So that's what is the reply to my earlier question. And that kind of confirms my earlier reply also that it is a culmination of various factors. So you have the IPOs. You have with the pledge mechanism. You have the new. So it is not only one function which it is linked to. It's also the delivery percentage more than the cash volume, the delivery percentage of these cash volumes which will drive the revenues and the deposit.
Okay. And sir, on the KYC side, we have seen a substantial jump. But what are the other applications that these KYCs are being fetched apart from our demat and the -- let's say, our traditional, say, mutual fund kinds of applications? Because I have seen the applications happening in even the pension fund fetches, but are there any other -- what are the other kind of fetches that happen?
Sunil, if you can answer that?
No. Typically, this is for demat and broking account for which fetches happen. Okay? And what you mentioned for pension, it really doesn't happen from the KRA.
Okay. Okay. And you mentioned for Q4, online data plus KYC charges, the revenue was around INR 31 crores. Is that right?
Yes. INR 31 crore.
The next question is from the line of Prateek Rathi from Choice Equity.
Congratulations on a good set of results. So I just wanted to know if you could quantify the impact of less IPO in this quarter. Like last -- in the last con call I attended, I remember, INR 23 crores, INR 24 crores was the revenue in Q3 from the IPOs. So if you could quantify for this quarter.
Yes. If you can answer, Girish.
So IPO corporate income for this quarter is around INR 7.90 crore.
Okay. Okay. Okay. And also, I wanted an update regarding the price revision. Like in the previous con call I attended, so in that, there were some talks from the SEBI approvals regarding the increase in the rates or the charges. So is there any update on the same?
No. There's no update as of now. As I said earlier, is 2, 3 years have been tough years. So we'll see how it goes. But as of now, there is no update.
The next question is from the line of Kunal Thanvi from Banyan Tree Advisors.
I wanted to understand any development on the MF Central side. Like how that platform has been doing? And what's our role there? Like how it has evolved? Second, on the depositories side. How things are going on the gold exchange? And any development that you want to share on that business?
So both of them are work in progress. The -- it's the technology platforms are being done, and it involves multiple players. So the interconnect also between these players has to be built and tested. So it's in the process of being done. And Mutual Fund Central is in 2 phases versus with the RTAs, and then will be with the depositories and RTAs. But surely, there will be a role for all the players. And the important thing is to deepen the markets and deepen more and more people being able to join. So it's a complementary role rather than a competitive role which is being really in envisaged. On the gold also, it is under active preparation in terms of the technology platforms, that will have to be tested with the exchanges, clearing corporations and the depositories. So both the depositories. There have been -- so whatever other the circular and the regulatory framework is out, it's slightly different from the securities markets. So those all nuances, et cetera, has to be kind of really implemented also.
The next question is from the line of Prakash Kapadia from Anived Portfolio Managers.
Yes. On the annual charges, we've seen a 33% growth. So if you could give some color. Is it some unlisted company scale? Were there some onetime revenues? Or is it just increase in folios? And secondly, if I look at the PPT on Page 25, the revenue breakup, INR 10.46 crores is other income and INR 47 crores is investment income. So what is the difference between that? And if Girish can just give the e-Voting and consolidated ECS for the quarter that will be helpful from the revenues.
So in terms of other income, other income largely consists of other than investment income. Now this includes debtors that we collect after it is considered as bad debts, sundry miscellaneous write-offs that we do, okay. And expenses for which provisions were created in earlier years. If they are reversed in this year, they are also considered as other income. So this is a -- other income is a culmination of such items which are not related to business.
And in terms of your other question on issuer charges, it's a combination of both increase in portfolios because more and more people are participating in the securities market and the larger number of unlisted companies also which have come into the fold. So it's a combination of both.
Okay. Okay. Okay. And if Girish has that data point ready of the revenues of e-Voting and consolidated ECS for the quarter.
Consolidate EPS is around INR 28.75.
Consolidate ECS charges and the e-Voting charges revenue breakup.
ECS is -- you are -- provision for doubtful debts?
Girish, I was looking at that consolidated ECS, the statement number of revenues and the e-Voting revenue number.
Okay. So e-Voting revenue for the quarter is INR 2.5 crore, okay? And cash charges income is INR 4.47 crore.
The next question is from the line of Madhukar Ladha from Elara Capital.
Sir, on the -- I see -- I saw on the presentation, there's a stake acquisition of 6.78% in open network for digital commerce. What is this item? What does the company do? And what is -- how much have we spent on this?
Yes. So I'll give a brief background on -- this is a kind of an open network for -- which is getting created. So all the e-commerce connects which can happen. It's a Section 8 company. And all the large institutions, all the MIIs and large banks have contributed equally, creating an alternative e-commerce platform which can be accessed by all the Indian persons. So that it kind of creates more of an Atmanirbar framework. We are not dependent on A or B particular kind of e-commerce framework. It is kind of an equal contribution. I'll ask Girish to give the numbers on how much we've contributed.
So we have contributed INR 10 crores as of now.
And just a follow-up on this. What -- I did not really follow what this e-commerce platform will do. I mean...
What it essentially does is that, today, all the shops, they have to either go to a particular say, like a -- in Amazon, Flipkart, or whoever. I mean, I don't want to give any names, but whoever. So this is kind of creating an India framework for e-commerce. So that all these shops, all these retailers, wholesalers, manufacturers can be a part of that ecosystem. And there is a lot of press on this. You can do a search. You'll able to get a lot of information. On what the regulatory intent is, it's coming under Ministry of Trade and Commerce. And they are kind of creating India framework or all these people can join that framework.
Ladies and gentlemen, due to time constraints, it was the last question for today. I now hand the conference over to the management for closing comments.
So I would wish all of you to remain safe. These are tough times, but I think, hopefully, India has fared fairly well as compared to the other countries. So would hope all of you are safe and sound and ensure that your family is also safe and sound. Thank you.
Thank you.
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.