Computer Age Management Services Ltd · NSE:CAMS
Computer Age Management Services — Q4 FY2023 Earnings Presentation
55 slides from Computer Age Management Services's earnings presentation, May 6, 2023
Slide 1: Cover letter to stock exchanges
06th 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: Presentatio
Slide 2: Investor Presentation May 2023
COMPUTER AGE MANAGEMENT SERVICES LIMITED Investor Presentation May 2023
Slide 3: Safe Harbour Statement
Safe Harbour Statement 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
Slide 4: Presenters: Managing Director and Chief Financial Officer
Anuj Kumar Managing Director Ram Charan Sesharaman Chief Financial Officer FY23 Q3 Earnings Presentation
Slide 5: Presentation flow
Presentation flow Business Overview Financials About CAMS Appendix Key Highlights for Q4 FY23 Revenue & Financial Highlights – Q4 FY23 Business at a Glance Corporate Structure Page No: 06 Page No: 19-23 Page No: 38 Page No: 49 AAuM Q4 FY23 – MF industry & CAMS Standalone P&L – Q4 FY23 Mutual Fund Se
Slide 6: Business Overview
BUSINESS OVERVIEW
Slide 7: Key Highlights for the Q4 FY'23
Key Highlights for the Q4 FY’23 Alternative Services vertical continued its Our AA + TSP offering has gained momentum Navi Mutual Fund live on CAMS Platform high growth trajectory recording ~21% Y-o-Y with over 20+ sign ups in the quarter taking AUM of CAMS funds was at Rs.28 Tn in Q4 growth
Slide 8: Think360.ai Products and Services
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 Data management platform - SaaS that offers analytics and credit scoring based on
Slide 9: CAMS growth trend in AuM, SIP registrations and transaction volumes
CAMS growth trend upwards in overall AuM, SIP registrations and transaction volumes AuM growth New SIP Registrations Transaction volume Historic high 27.0 27.8 28.0 7.6 26.2 124.1 Tn Tn Tn Tn 37 37.6 lakh38.3 40.3 111.3 Mn lakh lakh lakh lakh Mn Jun- 22 Sep-22 Dec-22 Mar-23 * Average AuM for the res
Slide 10: Mutual Fund Industry & CAMS AAuM – Q4 FY23
Mutual Fund Industry & CAMS AAuM – Q4 FY23 CAMS – Market Share (based on Quarterly AAuM Serviced by CAMS Industry AAuM AAuM) 68.2% ₹ 28.0 trillion ₹ 41.1 trillion 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 Inf
Slide 11: Operational Metrics – Q4 FY23
Operational Metrics – Q4 FY23 SIP Book Systematic Transactions Transaction Volume 35.4 Mn Processed 124.1 Mn 101.9 Mn (as on 31st Mar 23) YOY: 8% YoY: 16% YoY: 18% QoQ: 6% QoQ: 4% QoQ: 5% Live Investor Folios Unique Investors Serviced 57.4 Mn 25.7 Mn (as on 31st Mar 23) (as on 31st Mar 23) YoY: 11%
Slide 12: Mutual Fund Industry & CAMS AAuM – FY23
Mutual Fund Industry & CAMS AAuM – FY23 CAMS - Market Share (based on Quarterly AAuM Serviced by CAMS Industry AAuM AAuM) 68.3% Rs. 27.3 trillion Rs. 39.9 trillion During the year Net 7.1% YoY 8.3% YoY flows into equity assets positive Equity AAuM - CAMS Equity AAuM - Industry Inflows through SIP in
Slide 13: Operational Metrics – FY23
Operational Metrics – FY23 SIP Book Systematic Transactions Transaction Volume 35.4 mn Processed 465.7 mn 382.8 mn (as on 31st, Mar 23) YoY: 12% YoY: 23% YoY:18% Live Investor Folios Unique Investors Serviced 57.4 mn 25.7 mn (as on 31st, Mar 23) (as on 31st, Mar 23) YoY: 11% YoY: 12% 12
Slide 14: Alternatives business grows 21% Y-o-Y
The Alternatives business grows 21% Y-o-Y on the back of accelerated signings and rapid adoption of CAMS WealthServ Versatile technology & contemporary 300+ ₹1.5 Tn digital utilities funds serviced assets under service Full stack services for investor on- across 140+ fund houses boarding, fund a
Slide 15: AA+TSP business gaining momentum
AA+TSP business is gaining momentum with expanded outreach and superior product positioning Business Wins Business Updates Razor-sharp focus on sales yielding CAMS RTA / to be live as FIP Gateway continuous wins in Q1 FY24 CAMS CRA live as FIP Gateway in Q4 79 AA/TSP wins 20 in Q4 IRDA ent
Slide 16: Payments product offerings further fortified
- product offerings further fortified >50% Market Share 140 Million In Mutual Funds Ecosystem for RP* NACH Active Mandate registrations ₹5000 Crores + 2 Lakhs + ₹ 520 Crores UPI Autopay Mandate Registrations worth of UPI+ Transactions worth of Monthly Transactions Key Highlights Expanded Industry Pr
Slide 17: Scaling new highs in eIA and epolicy
scaling new highs in eIA and epolicy and ramps up deep contact tracing services 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 porta
Slide 18: CAMS CRA – simplifying customer journeys for eNPS
CAMS CRA – focusing on simplifying customer journeys for eNPS and extending API stack for POPs 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 Total eNPS industry registrations 2,86,000
Slide 19: Financials
FINANCIALS
Slide 20: Revenue Highlights – Q4 FY23
Revenue Highlights – Q4 FY23 2.5 % YoY Revenue ₹24,923.9 Lakhs 2.3% QoQ Asset 3.3% YoY Non-Asset 5.0% YoY Non-MF 7.7% YoY Based Based Revenue 0.2% QoQ Revenue 5.3% QoQ 18.6% QoQ Revenue Asset Mix Equity component: Q4 FY23 @ 46.5% (Q4 FY22: @41.4% / Q3 FY23: @ 46.4%) Numbers are after eliminating non
Slide 21: Financial Highlights – Q4 FY23
Financial Highlights – Q4 FY23 Operating EBITDA – 43.9% PBT – 38.4% PAT – 29.0% Return on 11,217 Net-Worth* 7,461 ~38.9% 9,894 9,879 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 31st Mar 2023 was ₹ 482.2 Cr 2.
Slide 22: Revenue Highlights – FY23
Revenue Highlights – FY23 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 %) Numbers are after eliminating non-controlling interest 21
Slide 23: Financial Highlights – FY23
Financial Highlights – FY23 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 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
Slide 24: Consolidated Financial Highlights – Quarterly
Consolidated Financial Highlights – Quarterly In INR Lakh In INR Lakh Total Operating Revenue OP.EBITDA & OP. EBITDA in % 30,500 0.2 12,000 90.0% 80.0% 0.1 10,000 25,500 70.0% 0 8,000 46.2% 46.5% 47.7% 46.1% 60.0% 20,500 41.4% 43.8% 44.5% 43.9% 50.0% -0 .1 6,000 40.0% 15,500 -0 .2 4,000 30.0% 20.0%
Slide 25: Q4 FY23 Standalone P&L
Q4 FY23 Standalone P&L FY 23 vs. 22 Particulars (In Rs Lakhs) Q4 FY23 Q4 FY22 YoY% Q3 FY23 QoQ% FY23 FY22 % 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.
Slide 26: Q4 FY23 Consolidated P&L
Q4 FY23 Consolidated P&L FY 23 vs. 22 Particulars (In Rs Lakhs) Q4 FY23 Q4 FY22 YoY% Q3 FY23 QoQ% FY23 FY22 % 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.
Slide 27: Revenue Profile Q4
Revenue Profile Q4 FY24 Revenue Breakup Revenue* (In ₹ Lakh) 9.5% 10.5% 11.0% 100% 13.5% 15.0% 13.9% 2.5% 77.0% 74.5% 75.1% 24,924 31-Dec-22 31-Mar-22 31-Mar-23 24,357 24,318 Quarter ended Non-Mutual Fund MF-Non assets Based MF – Assets Based Breakup of Non-Mutual Fund Quarter ended 31-Mar-22 31-Dec
Slide 28: Revenue Profile FY23
Revenue Profile FY23 Revenue Breakup Revenue* (In ₹ Lakh) 9.8% 9.8% 10.1% 100% 37.8% 13.3% 14.3% 13.7% 6.8% 76.9% 75.9% 76.2% 97,183 31-Mar-21 31-Mar-22 31-Mar-23 Year ended Non-Mutual Fund MF-Non assets Based MF – Assets Based 90,967 70,550 Breakup of Non-Mutual Fund Quarter ended Particulars 31 Ma
Slide 29: ESG
ESG
Slide 30: Update on ESG Initiatives
Update on ESG Initiatives The company has a Board approved ESG policy Published ESG initiatives in Annual report on voluntary basis in CAMS annual report FY2021-22. As part of the Environmental related initiatives the company partnered Coverage will be further enhanced in the Annual with an NG
Slide 31: CRISIL ESG score
The publicly available CRISIL ESG score for the company is 58 considered as Adequate 30
Slide 32: Lake renovation with Environmentalist Foundation of India
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. 31
Slide 33: Environment
Environment 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 target
Slide 34: Social
Social 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,
Slide 35: Social
Social Commitment to Employees 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” t
Slide 36: Governance
Governance 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
Slide 37: Governance
Governance Compliance, Risk and Internal Audit Ethical Practices The Company has extensive Information Security CAMS Code of Conduct Management System in place for ensuring protection of The vigil mechanism & whistle blower policy encourages the systems and safeguard information to avoid mater
Slide 38: About CAMS
ABOUT CAMS
Slide 39: CAMS – Business at a glance
CAMS – Business at a glance Technology-driven India’s largest registrar and Services 10 of the 15 largest Leveraged domain financial infrastructure transfer agent (“RTA”) of MFs2; ~19 years average expertise, processes and and services provider to mutual funds (“MFs”) with an relationship with infra
Slide 40: CAMS – Mutual Fund Services Business
CAMS – Mutual Fund Services Business 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 Implementa
Slide 41: Proprietary technology platforms and mobile applications
CAMS – Proprietary technology platforms and mobile applications for MF, AIF and PMS CAMS has developed and implemented various technology platforms and its technology driven infrastructure and services are integral to the operations of its clients mfCRM edge360 Mobility solution for MF RMs/SMs App a
Slide 42: Mutual Fund Services provided by CAMS
Mutual Fund Services provided by CAMS 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 service
Slide 43: Key Highlights
Key Highlights Large and Growing Scalable Mutual Funds Market 1 4 Technology Enabled Ecosystem Integrated Business Model & Longstanding Our Mission… Your Growth Strong Focus on Client Relationships in MF Services Business 2 5 Process and Risk Management Largest Infrastructure and Services Experience
Slide 44: Overview of Non-MF Services
CAMS – Overview of Non-MF Services 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
Slide 45: Overview of Non-MF Services (cont'd.)
CAMS – Overview of Non-MF Services (cont’d.) 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 financi
Slide 46: Compliance and risk management architecture
CAMS – Compliance and risk management architecture Relentless focus on systems and processes has allowed CAMS to become a trusted provider of services to its clients and other stakeholders Cyber Compliance Security Risk Regulatory Management Oversight Assists MF clients with compliance ISO 27001:201
Slide 47: Experienced Board of Directors
Experienced Board of Directors Board of Directors ‒ Natarajan Srinivasan Audit ‒ Dinesh Kumar Mehrotra Committee ‒ Vijayalakshmi Rajaram Iyer Dinesh Kumar Mehrotra ‒ Sandeep Kagzi Chairman & Independent Natarajan Srinivasan Director Independent Director Nomination & ‒ Vijayalakshmi Rajaram Iyer Remu
Slide 48: Experienced Senior Management Team
Experienced Senior Management Team 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
Slide 49: Appendix
APPENDIX
Slide 50: Corporate Structure
Corporate Structure Computer Age Management Services Limited Mutual Funds Services, Alternate Investment Funds Services, Payment Services, Banking and Non-Banking Service Businesses 100% 100% 100% 55% CAMS Insurance Repository Services CAMS Investor Services Private CAMS Financial Information Servic
Slide 51: History/Milestones
History/Milestones 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 re
Slide 52: Awards and Accolades
Awards and Accolades Our Company was awarded ‘Best App’ for ‘myCAMS’ 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 Collect
Slide 53: Shareholders' Information
Shareholders’ Information Stock Data as on 31st 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
Slide 54: Glossary
Glossary Term Description Term Description AAuM Average Assets under Management Kotak Kotak Mahindra Capital Company Limited ACH Automated Clearing House Kotak Mahindra AMC Kotak Mahindra Asset Management Company Limited Aditya Birla Capital Aditya Birla Capital Limited KRA KYC Registration Agency A
Slide 55: Thank You – Investor Relations contacts
Mr. Anish Sawlani, Head - IR +91 72990 07973 Computer Age Management Services @ Anish.sawlani@camsonline.com THANK YOU Limited (CAMS) Mr. Rajesh Agrawal +91 99674 91495 Investor Relations @ Rajesh.Agrawal@linkintime.co.in Orient Capital
Computer Age Management Services — Q4 FY2023 Earnings Presentation on 6ix