CAMS targets 15-16% profit increase in FY24
Anuj Kumar, Managing Director of Computer Age Management Services discussed the spike in SIP registrations and the way forward for the company.
Computer Age Management Services (CAMS) is targetting revenue growth of 14-15% in the current financial year and a profit growth of around 15-16%.
The Chennai-based company, which is a registrar and transfer agency for mutual funds, aims to sustain its EBITDA (earnings before interest, tax, depreciation and amortisation) margin at around 43-44% for the year.
Anuj Kumar, the company's Managing Director highlighted that Systematic Investment Plan (SIP) registrations have risen to 60 lakh per month from 45 lakh earlier with inflows crossing ₹10,000 crore per month.
In the second quarter of the financial year 2024, CAMS posted a net profit of ₹84.5 crore versus ₹72 crore registered in the second quarter of the last year. Revenue from operations rose 13.5% year-on-year (YoY) to ₹275 crore. The EBITDA margin, representing the profitability as a percentage of revenue, was at 44.4%.
Kumar said the plan is to enhance margins by 50-100 basis points annually. He projected a 40% margin in the non-mutual fund segment within the next 2-3 years.
CAMS has a market capitalisation of ₹13,956 crore. Shares of the company have risen over 10% in the past month versus gains of a little over 1% in the Nifty 50.
(Edited by : Shweta Mungre)
First Published: Nov 22, 2023 8:23 PM IST
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