This high ROE depository company reported stellar Q2FY23 results; do you own it?

The company became the first depository to register 7 crore demat accounts in August 2022, while 48 lakh demat accounts were opened in Q2 FY22-23.

Central Depository Services (India) Limited (CDSL), Asia’s first and only listed depository, announced its audited consolidated and standalone financial results for the half-yearly ended September 30, 2022. 

CDSL became the first depository to register 7 crore demat accounts in August 2022, while 48 lakh demat accounts were opened in Q2 FY22-23. In the period ended September 30, 2022, your company through its subsidiary CDSL Ventures Ltd (CVL) continued to generate capital market investor records under CVL and being the first and largest KYC Registration Agency (KRA) in the country.

On a consolidated basis, the company's Q2FY23 total income came in at Rs 170 crore, up by 16 per cent on a sequential basis. While net profit saw a robust QoQ growth of 40 per cent from Rs 58 crore in Q1FY23 to Rs 80 crore in Q2FY23. 

To quote Nehal Vora, MD & CEO, CDSL from a press release filed with the exchange, "The financial performance this quarter continues to be strengthened by our sustainable long-term strategy of investing in the digital eco-systems and robust technology to provide all market participants an easy and secured platform."

On Tuesday, shares of CDSL soared more than 1.40 per cent during early market hours to record an intra-day high of Rs 1,241.95 per share on NSE.