Ladies and gentlemen, good day. Welcome to the Central Depository Services (India) Limited Q4 FY 2018 earnings conference call hosted by Axis Capital Limited. As a reminder, all participant lines will be in the listen-only mode, there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. I now hand the conference over to Mr. Praveen Agarwal from Axis Capital. Thank you. Over to you, Mr. Agarwal.
Thank you, Aniket. Good evening, everybody. Welcome to this earnings call. We have with us Mr. P.S. Reddy, MD & CEO, Mr. Bharat Sheth, CFO, and Mr. Nilesh Kittur, to discuss the results. I would request Mr. Reddy to give us a brief overview of the quarterly results, post which we'll open the floor for Q&A. Over to you, Mr. Reddy.
Thank you, Mr. Agarwal. Welcome to the conference call, earnings call of CDSL. This year we have done exceedingly well as you have seen the results. Apart from the quarter, the overall years have been good. Capital markets are booming, the new issues have substantially lifted our revenues. Mr. Bharat will tell you the revenue hikes, which have substantially contributed. At the macro level, our market share is now 46.5% as of the end of the financial year, as against 44% at the beginning of the year. That's a substantial gain that we have made. In the last year, we have opened 25.72 lakh accounts, as against the competition, 15.11 lakh accounts. The incremental market share has gone up to 63%, so that has lifted the aggregate market share.
The CVL also has substantially contributed to the growth, now it's almost 30% of the top line, at this point in time. One minute, sir. This is 19% of the top line and 23% of the profits that's contributed. In terms of CVL KYC, we have about 1.7 crore KYCs fully digitized, available, and people are using it. What is important is the multiple usage of the KYCs has resulted in substantial income. That's one part of it. The second part of it, eKYC is doing well. A lot of online account opening is happening using the eKYC. Of course, there is some rough patch that we are currently going through because of the KYC, Aadhaar should not be used, the matter is sub judice.
Until that final issue is finally decided by the Supreme Court of India, probably there will be some slow process of approving the applications. Otherwise, it's doing well. The other part of it is the National Academic Depository. Here again, we are a market leader at this point in time, and the number of academic institutions which have signed up with us are 231 as against the competition, 190. We have 47 universities or academic institutions who have additionally given a letter of intent. We are setting up their, whatever the integration part of it, once that is done, they will also sign up. When it comes to the commodity repository, which recently we launched, of course, there's no income except the investment income at this point in time.
It's been launched sometime in September, and there are about 72 repository participants we have registered so far. Very few accounts have been opened, and the ecosystem is still being developed. We are conducting a lot of awareness programs with the warehouses, with banks, with commodity traders, and we see a lot of mandis, major mandis where the various products are being traded. The response has been very encouraging. That's one another important thing that we have done there. The other part of it is SEBI has granted the registration for registrar to the issue. RPA license, we got it, and that we will be starting shortly. There's also news you must have read in the papers also.
The unlisted companies are also going to be admitted with the depositories, because then only the government or the Ministry of Corporate Affairs will get a complete view about what's happening in these companies with respect to their shareholding. That process is also, discussions are on, and that's another lineup business that we are looking at it. Of course, will not be as big as the listed companies' revenues. Obviously, there won't be much transfers. That's one important thing. We are also looking at another important piece. Thanks to the online account opening, there is an eSign project. For doing eSign, You can work with somebody who is a certifying authority or you yourself can become a certifying authority. We are currently working with (n)Code Solutions. There's another branch of GNFC which is a certifying authority.
We thought there are only four in this space, and we too should be doing well by entering into it. Maybe going forward, online e-signing will take in a major shape. We should be there when it is really big. That's why our board, especially the CVL board, has decided to take up that activity as well. Initially, we don't expect any great revenues, only time will tell how far we will do it, how better we will do it in this space, that e-sign part of it. These are the major developments in this space. There is another thing that the board has decided was to last year we had issued about 30%. This year it is decided to declare a 35% dividend, that is INR 3.50 per share as dividend.
That gives you a dividend payout ratio of 57%, which is by and large maintained the last three years. That's what we have been doing it, and then that maintains it, 57% dividend payout ratio. I'll ask my colleague, Bharat Sheth, to speak on the financials.
Good evening, everybody. On consolidated results on annual basis, first time we have crossed total income of INR 225 crore, means more than INR 200 crore we have crossed, and first time we have crossed on profit after tax of INR 100 crore. It comes to INR 103 crore as such. Increase in operational income by 31% and increase in expenditure by 20%. Profit before tax was increased by 21% on consolidated basis. PAT is of 20%. On standalone basis, first time we have crossed INR 150 crore turnover operational income.
Profit before tax, first time we have crossed INR 100 crore, that is INR 106.38 crore as such. My standalone basis operational income increased by 27%, total expenses increased by 14%, profit before tax increased by 16%. Profit after tax is 14%. On quarterly basis, if you see Q4 versus Q3 on a consolidated basis towards operational income is more or less same. There is 1% increase is there. Other income has increased by 67% quarter four versus quarter three. Total expenditure increased by 13%, profit before tax increased by 4% and net profit by 2% as such. On standalone basis, operational income quarter four versus quarter three by 2%, other income increased by 55%. Other income means income from mutual funds as such.
Total expenditure increased by 10% quarter-on-quarter basis. Profit before tax increased by 6% and profit after tax by 7%. Consolidated basis as well as standalone basis I have told. I would like to open forum for question and answer.
Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to only use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from the line of Sanjay Latta from Perfect Research. Please go ahead.
Hello.
Hello.
Hello. Hi, good evening to you all. My first question is-
Go ahead.
Hello.
Ha.
The depository services being offered seem to be similar across competitors. What strategies are we deploying to get incremental market share?
Well, to get incremental market share, the online account opening is one thing that we are concentrating on, and we are looking at more and more admitting more and more DPs and more and more FinTech firms. If they become DPs, obviously they will be able to ramp up our account opening faster than anybody else. That's the way we are looking at it.
Sir, the second question is, you described that unlisted companies also have to register. Could you please elaborate how this process works?
MCA is considering asking the private limited companies and others to admit their DPs mandating these. Okay. Once that mandate takes a concrete shape, obviously they will be asked to dematerialize the entire shareholding into deposit shares. Now they may choose one of the depositories. We don't know whether they will mandate it with both so that investors may have an accord with either of the depositories and still they get service. They may say that, "No, you go only with one of them to reduce this cost." Obviously, the cost will not be, or the tariff will not be as high as what SEBI has mandated the listed companies to pay.
To that extent, it will be much lower than what it is.
Okay. Because the last question from my side is, what is the addressable size of opportunities at present?
Come again.
What is the addressable size of opportunities?
Of the unlisted companies?
From the services you are offering.
What are the other opportunities available, like addressable opportunities?
What are the addressable opportunities?
Addressable size of opportunity as like how much the total size of the opportunities we are getting is like in FMCG, they are INR 1,000 crore market share and food, where they are INR 1,000 crore industry. as like what we earn.
That we will not be able to share anything of those things. That's not appropriate for us to comment.
Okay, sir. Thank you so much. Thank you.
Thank you.
Thank you.
The next question is from the line of Nitin Aggarwal from JM Financial. Please go ahead.
Thank you for giving an opportunity, and congratulations on a good set of numbers. Sir, my first question is regarding the recent news where SEBI set panel headed by R. Gandhi is likely to recommend allowing new corporate houses or private companies to get license for depository services. I wanted to know what is the status on this, and if allowed by SEBI, how will the competition pan out in the next two years?
See, we thought two itself is a crowd in the depository space. If the third one comes, I don't know what to say on that. As you said, I don't know what the Gandhi Committee actually said because nothing official has come out as yet on this. It's only newspaper reports.
Yes, right.
that discussed in bits and pieces. We will see and evaluate strictly what the Gandhi Committee has said and what we should do to withstand the competition. Having said that, my view is that there's not enough space for too many depositories to work in this space. Because the depository participants have an inter expenditure and the product is by and large homogeneous. The market is, especially the ones, the established players are already tied up with either NSDL or CDSL. Even if a third one comes, the depository participants have to tie up with the third one, and there's an expenditure at their end. Whether they will be willing to look at that expenditure, I don't know. I don't think that's a viable option, okay, at this point in time. That's what our thinking is.
We will see how it will pan out. There's no immediate danger in our view.
Okay. Thank you. My second question is, if you could give us the revenue bifurcation for FY 2018 for annual issuer charge, transaction charges, IPO, corporate action, and online data charges.
Okay. On consolidated basis, annual issuer charges, FY 2017, it was INR 51.71 crores. It has increased to INR 55.62 crores, increased by 8%. Transaction charges from INR 31 crores, it has increased to INR 44 crores, that is increased by 41%.
Okay.
IPO corporate action charges from INR 16.5 crores, it has increased to INR 29.48 crores, that is increased by 79%. Online data charges from INR 18.7 crores, it has increased to INR 29.18 crores, that is 56%.
Okay. Thank you, sir.
Okay.
Thank you. The next question is from the line of Anand Laddha from HDFC Mutual Fund. Please go ahead.
Hello, sir.
Hello.
Sir, if you can give some color, like how is this annual listing charges calculated?
Yeah. Annual issue charges on 2 front, one on a slab basis or on a folio basis. For example, if share capital admitted is more than INR 20 crore, then we can charge them INR 75,000. For example, Reliance, if you take it, XYZ company is having INR 25 crore share capital, then I can charge them INR 75,000 on the basis of slab. They are having a INR 10 lakh folio with us, then I can charge INR 10 lakh into INR 11. Whichever is higher, like that we are charging.
Okay. These charges are standard across both NSDL and CDSL?
Yes. Mandated by SEBI.
Okay. In the case of IPO corporate action charges, how that is levied, sir?
IPO corporate action charges based on the number of folios as such, that is INR 10 per folio we are charging, or minimum file size INR 10,000 per file, like that it is.
Sir, how is the transaction charges being charged, sir?
Transaction charge is from INR 4.25 to INR 5.50, depends on volume of business given by the depository participants.
Okay.
That is transaction only, like mobile phone, incoming is free, outgoing is chargeable.
Sorry, I didn't get the last one, sir.
It is like only debit transaction we are charging.
At the time of selling only we have to pay the charge, not at the time of purchasing.
Right.
Okay. Sir, if you can give, what is the number of company listed with the CDSL? Corporate.
At present, 7,539 companies are there, listed with us.
It includes listed, unlisted, both together or?
Yeah.
All?
Yeah. Both together, 10,628 companies are there.
10,000?
Which are listed.
With us?
Yeah.
Of this 7,539 are listed.
Yeah.
Okay. Sir, if you can give also the revenue of CDSL Ventures.
CDSL Ventures, yes. One minute. CDSL Ventures. CDSL Venture on a annual basis.
As on 31st March 2017, operational income was INR 24 crores. It has increased to INR 37 crores, 51% increase in operational income. Other income means mutual fund investment income from INR 5 crore 40 lakhs to INR 6 crore 13 lakhs, that is increased by 14%. Whereas total expenditure from INR 6 crores to INR 10 crores, it has increased by 63%, whereas profit before tax from INR 23 crore to INR 32 crores, that is increased by 39%. Profit after tax from INR 17 crores to INR 24 crores, that is increased by 38%.
Okay. Sir, how much stake we have in this venture? I mean, 100% owned by us?
100%.
Okay. Sir, in the CDSL Ventures, we charges on the basis of the KYC.
Yeah.
Right? Sir, what is the basis of charge? Like, we charge per transaction, we charge certain amount like in the case of transaction charges?
Here per case, per KYC usage, the charges vary. Similarly, when you create KYC, there is one charge, and when somebody uses the KYC, the charge is different. That's the way it works.
Okay. How much do we charge, sir, per KYC usage and how much do we charge for creation of KYC?
By and large standard, some of the intermediaries who are giving big volume, there is a discount also are there.
Okay.
That can be said.
Okay. Sir, if you can give some data, like how much KYC we could have created in FY 2018 versus FY 2017?
Yeah. I'll tell you. Creation is 2,128,000.
Yeah.
Around INR 22 lakhs KYC created during the year.
It is a new KYC created.
Yeah, during the year.
This INR 22 lakh is a new customer which has come or it is a, suppose a customer could have done KYC for one mutual fund and second, is it considered into a new KYC?
New KYC.
New KYC. Okay. Sir, similarly, you could have a data of KYC users also, how much KYC users could have happened?
I think that is a bit confidential. We don't disclose that.
Okay, cool.
Because there's a four other competition.
Competitors
competitors are there. Yeah.
Who else are there along with you in the competition?
NDML, CAMS, Karvy, DotEx.
Sorry, NSDL?
NDML.
NSDL.
NSDL Database Management subsidiary is there.
Okay.
CAMS is there, Karvy is there, DotEx is a NSDL subsidiary.
Okay. DotEx also does the same.
Yeah. We are the largest among all the five.
Okay. Sir, just a small request. If you can give quarterly breakup of your revenue in terms of how much is the annual charges, IPO, online data charges, it will really help us in analyzing every quarter.
Every quarter you want it that. That is the format what SEBI has and companies accordingly we are giving.
You can give it especially a breakup of the revenue, it will help us, sir.
Definitely, we'll look into it.
Okay. Sir, when you say online data charges, how it is charged? On what basis they charge, sir?
It is the same thing, KYC charges only, they call it online data, sir.
Okay. DotEx.
Yeah. Thank you.
That is from my end, sir. Thank you so much.
Thank you. The next question is from the line of Abhishek Jain from Vallum Capital. Please go ahead.
Sir, your revenue on Q on Q basis seems to be flat. Sir, what are the reasons for the same? Second question is, your interest income yield is so low against so much of investment. Can you just bifurcate how much you are earning interest and how much cash is very idle?
About the operational income, it is flat. It depends always on the market and quarter-basis it is stable as such. If you see quarter one, two, three, four, it is more or less stable as such. It depends on number of IPOs as well as corporate action on particular quarter, it varies accordingly. Regarding the other income, our other income has quarter-to-quarter, it depends on that. Our 90% of the investment are in mutual funds as such. SMPs are there, short-term funds are there.
Yes, sir.
It depends on a NAV basis, because as per the index, we have to provide as per the NAV, whatever mark-to-market we have to do it. As on 31st December, whatever NAVs are there, if you see as on 31st March, it has increased, that's why investment.
Continue.
Hello. There are two components. One is tax-free and one is taxable components are there in investment also.
Hello.
So yield is-
Hello
Approximately 8.18% has come. If you compare to last one, that is last year, it has to 9.69% because investable surplus was, because we have invested in the property, around INR 52 crores was not available to us because of that reason.
How much amount is available on which you earn interest income? I'm asking that.
Corpus, how much corpus?
How much corpus is available?
Total INR 550 crores.
INR 550 crores. On which you are earning how much amount?
8%.
8.1%.
8.1% return.
Sir, some corpus is into the regulatory cash mandate. Are you earning interest on that part?
That is whatever.
Yes.
Come again, please. What are you asking?
There is some regulatory mandate for you now to maintain INR 210 crore this cash or cash equivalent.
Net worth requirement.
Net worth requirement. Are you earning some interest on that part also?
Yes. This INR 550 includes that also.
Okay.
Abhishek Jain, are you done with your questions?
Yes, sir.
Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from the line of Prakash Kapadia from Anived Portfolio Management Services.
Please go ahead. Thanks for the opportunity. Congrats on a very strong revenue growth and crossing the INR 1 billion PAT number for the year.
Thank you.
Sorry to interrupt. Mr. Kapadia, can you please speak closer to the phone?
Sure.
Am I audible now?
Yes.
Yeah. I will say congrats to the entire team for the very strong revenue growth and INR 1 billion PAT figure for the year. We were INR 1 billion sales two years ago, so we hope this is very structural and congrats to the team for that.
Thank you.
If I directionally look at the investment book, the share of non-current investments has been going up. If you could give us some idea of the tenure or duration of the non-current book, and will this continue? Is this a conscious strategy at our part to avoid repricing of interest rate shocks?
Our total investment, if you see 90% are in the mutual fund, and out of it taxable as well as non-taxable. Tax-free, we are invested in the bonds.
Right.
For taxable thing, we are following that most of our investment are on three years FMP tenure.
Okay.
There, capital gain tax benefit also we'll be able to take.
Okay. This would continue in the near future where the longer term or the non-current could see further increase also?
Yes. Definitely.
Okay. That will avoid the capital gain. Understood. That is helpful. Investor protection fund, there has been an absolute decline in FY 2018 as per notes. Is that a right understanding at my part?
Well, last year, investor protection fund SEBI has come out in 2012, and in 2016 they have come out with the guidelines. We have transferred whatever funds last year with interest on that. That is around INR 1.6 crore we have transferred towards interest. Because of that difference only.
Optically the number looks lower this year.
Yeah.
Otherwise-
One-on-one basis it are same. Every year we have to transfer after the Board approves this, we have to transfer the fund to the trust.
Sure. Mr. Reddy, you mentioned about the eSign and the RTA license, which was just approved by SEBI. eSign is what? More linked to DBT? How does that work? If you could give some color and RTA, how does life change for us and what's the game plan on the RTA side, if you could give?
SEBI is looking at distribution of around the dividends, et cetera, by the depositories. There's a concept paper also already, I suppose, it's there on the SEBI site. Okay? There's also thinking that the depositories should be able to do whatever little is being now done by RTAs, because the RTA process has become online and substantial work has been shifted online. What is left now across the world, depositories are doing more and more of even the RTA process also. Keeping that in view, we thought we should step in and then prepare ourselves to take over that kind of responsibility, to take charge of that responsibility. It comes to eSign, you see, account opening turnaround time has to be reduced substantially, and many of the brokers or DPs are competing with banks and others who have a three-in-one account opening portal.
Right.
For that, using the eSign, they are getting all documents signed. Okay. eSign is based on Aadhaar number. Once you fetch an Aadhaar eSign using the one-time password, then that can be attested on only one PDF document. Okay. The more the PDF documents you have to sign, the number of times you need to do that Aadhaar fetching is increased. Then again, the turnaround time, as I said, it is substantially reduced from few months to maybe few minutes.
Right.
The compliance costs are also reduced because there's no doubt that whether it is signed by client or not signed by client, all the dispute is eliminated.
Right
Hobby claim is fully established. It's a very no nuisance kind of process. That's why we want to step into that as well. It is not necessarily that we will use that eSign process only for the account opening here. Once I am in a certifying authority, this eSign concept can be applied for anywhere. For any document signing, not just account opening with the depositories.
Okay. Tomorrow it could be extended.
You can sign the bills, you can sign any piece of paper, any document.
Okay. That is helpful.
Thank you, sir.
All the best.
Thank you.
Thank you. The next question is from the line of Khareej Amantri from IIFL. Please go ahead.
Good evening, sir.
Good evening.
Good evening, madam.
I just wanted to know market share with respect to increase in Demat accounts, whether it has increased QOQ and YOY.
Well, I will tell you. Yeah, you can. Year-on-year it is 64% as against 59% last year. We have now, it's about one minute quarter
Sure.
Yeah. Yes, quarter-on-quarter it's an increase. 60, 62, 63, 65. This is the way it has gone up. Okay? The average is 63.
Okay. This quarter it was 65%.
Yeah. The last quarter it was 65%.
Okay, sir.
Thanks.
That's all from my side.
Thanks.
Thank you.
Thank you. The next question is from the line of Sanketh Godha from Spark Capital. Please go ahead.
I just have a couple of questions. One was on non-depository services has shown me good growth. Just wanted to know the details, just more granular details on it. Second was that, how should one look at the impact of Central KYC? If this happens, is CDSL being paid for uploading the data?
You see, the CDSL major revenues come from the CRA business. That is where the CVL is being. We have been telling, and even in the IPO document also, one of the risk factors is if CKYC is the only KYC that is to be maintained and the CRA has no role to play, then probably this will take a big hit. At this point in time, we have been successful in living through this fear, and I'm sure we will continue to for some more time. That's what my view is, because there's a value addition that what we are doing in the KYC arena. There's no in-person verification when it comes to CKYC. There's also the data that is entered is verified by our people in our operation site. They also reject some of the applications where the KYC is done wrongly.
All that value addition is not coming through from the CKYC system. We see that we will continue to do that. When it comes to the upload charges, yes. Even we are giving the services to the intermediaries where they upload on the CRA, then we will massage the data and provide the file that is needed to be uploaded on CKYC, and the intermediaries quietly upload that data into that. There is no extra effort for them to upload that. That is where we charge a very small price for doing that kind of massaging the data.
Okay, the charges would be very low, or you can disclose the charges here?
Very low. The charges for massaging the data are very low. For the KYC creation and then actually doing it on the CVL CRA portal, obviously they are competitive prices. That is all I can say.
Okay. Just on the initial part of the question, non-deposit services have shown good growth. If you can give more details on it would be really helpful.
It is substantially CVL. 99% CVL, Other businesses are still. In the case of CIRL, it has not taken off. As I said that the insurance industry is not as yet supporting fully the dematerialization of the policies, or they themselves are putting up on their portals the policies. When it comes to the commodity repository, this started last year sometime in September. We are still making the stakeholders aware of the benefits of the commodity repository. When it comes to the CVL, that's a well-established platform. The National Academic Depository, one which we are doing it under CVL, but the MHRD has mandated that we cannot charge the academic institutions till September 2019. We are only bringing them into our fold, but the charge will start only in September 2019 onwards.
Okay. Thank you very much.
Thank you.
That's it from my end.
Thank you. The next question is from the line of Ayush Khaitan from Prosperous Invest. Please go ahead. Apologies. The next question is from the line of Anand Laddha from HDFC Mutual Fund. Please go ahead.
Hello, sir.
Hello.
Sir, if I look at our four major revenue line, annual charges, transaction, IP, and online data, all four together is INR 160 crore. Our reported top line for the full year is INR 190 crore. Can you give some color, like the balance INR 30 crore are coming from which area, sir?
Yeah. One minute. See, there are other charges like user facility charges are there, apart from those five you have mentioned.
Okay.
User facility charges are there, then settlement charges are there, account maintenance charges are there, e-Voting charges are there. e-Voting is one of the major contributor. That is INR 4 crores what we have earned. ECAS charges are there.
Sorry. In?
e-Voting charges, INR 4 crores.
e-Voting and ECAS. What is an ECAS, sir?
That is a consolidated account statement. Electronically we are sending, physically also we are sending.
Okay.
Two processes. You want figures also? I can give you.
If you can give figure, that also will be helpful.
Yeah. User facilities charge is INR 3.4 crore.
Okay. This is in FY18?
FY18.
Okay.
Settlement charge is INR 1.6 crore.
Account maintenance charge is INR 2.88 crore.
Okay.
E-voting charge is INR 4.1 crore.
Okay.
ECAS charge is INR 6.43 crores.
Okay.
Document storage charges, that is a CVL thing, that is INR 5.28 crores.
Okay.
e-KYC, it will come to INR 2 crores.
Okay.
These are the major.
Sir, what is the growth outlook on all of these charges? What is the basis of these charges?
Basis of charges, you will find out everything on our website. It is there.
Okay. Sir, what is the growth outlook on these other charges, like ECAS, e-Voting?
For e-Voting, there is a competition, so it depends on that also. In ECAS charges, whenever transactions are there, we have to send to beneficial owner. This depends on the number of transactions we have done, and accordingly we are sending. Growth and all depends on the market over there.
Okay, sir. Thank you, sir.
Thanks.
The next question is from the line of Harit Shah from Reliance Securities. Please go ahead.
Yeah. Thank you for the call. Sir, I have a query. Do you have the data for the total beneficial owner accounts, gross and net basis at the end of FY 2018?
Yeah. We are having the data of net BO accounts.
No, gross.
Current year, CDSL has 25 lakh 72,000 accounts they have opened against NSDL of 15.11 lakh.
Right. This is on a net basis?
Yes, on a net basis.
Yes, these are net basis.
Sure. Okay. Around, I think last year, the total figure was about INR 1.6 crore, I think, the total.
Yeah, I think it was INR 1.7 crore.
Yeah.
We are having a INR 1.48 crores.
Right. That is also net, right?
Yeah. Net only.
Okay, sure. Secondly, what is the total number of depository participants at the end of FY 2018?
Yeah. We are having a 594 depository participants.
Sure. Okay, just one query about this. Sir, what is the reason for the depreciation charges increasing so substantially and your net assets?
Recently we have bought a new property office premises.
Right.
This is a and furniture and fixtures and all.
Right. That is the only reason, right? There's no additional nothing apart from that, right? That was, I think, part of your CapEx in any case, right?
Okay. I just wanted a clarification on that. Okay. Just one last question. What is the outlook for FY 2019 on an overall consolidated level? Obviously the market will vary based on various factors, but the overall outlook for the rest of the business, if you could just give some qualitative understanding. Thank you.
We don't see any problem in market being what it is today. Okay. Maybe the elections and then rain gods may throw some element of uncertainty. Otherwise, economy is doing well. There's no reason why we shouldn't be doing well. As long as there is an opportunity in the economy, as long as the economy does well, company sectors do well, capital market does well, we are going to capture the market. So much we can be confident about.
All right. Okay, one last question on my side. What is the CapEx outlook for FY 2018? Sorry, FY 2019?
It will be around INR 6 crore-INR 7 crore.
Okay. That's it from my side. Thank you so much.
Thank you.
The next question is from the line of Pritesh Chheda from Lucky Investment Managers. Please go ahead.
Yes, sir, I missed the CDSL Ventures revenue for FY 2018 vis-à-vis FY 2017. When you mentioned online data revenue, is that CDSL Venture revenue or it's a separate number then?
No, same thing. CDSL Ventures Limited only.
Okay, that you mentioned as INR 29 crores versus INR 18 crores last year?
Yes. Operational income CDSL Ventures Limited against FY17, INR 24 crores, they have won INR 37 crores.
Achha.
Out of the INR 29 crores from online data charges.
Okay, sir. CDSL Ventures is INR 37 crore versus INR 25 crores.
The difference between standalone and consolidated is a function of CDSL Ventures, right?
Yes.
There is no other company or subsidiary.
Operational income side, no. Out of INR 191 crore, INR 154 crore from CDSL and INR 37 crore from CDSL Venture for operational side.
Okay. Secondly, I just wanted to take some update on the GSTN. What is the status there in terms of monetization, track revenue? What is the update on National Academic Depository?
Yes. On the GST piece, as CDSL has transferred its license, rather CVL has independently applied and CVL got it, and we transferred the business from CDSL to CVL because we have not got the permission from SEBI to continue this business in CDSL. The projections, the kind of outlook that we had for GSTN was very bullish at the time when we launched. The number of filings have come down, and we have not seen as much traction as we thought we will get it. Still, we stay put in this business and then see what will happen as the time pass by.
What was the scope of area in this business? You are basically records keeper for-
No. We are providing an ASP service as well as we are a GST. We have an ASP module. If somebody wants to use that ASP module, they can use it, and then they can upload it independently without depending on anyone. If you have an ASP module, and you can connect yourself to GST, and then you upload it. That's the way it is.
Okay.
This is on the GST. I think I have explained earlier the National Academic Depository. The number of academic institutions that we have onboarded, about 231 have signed up with us, and about 47 have been letter of intent as against the competition. Again, it is there on the UGC website. You can see who has done what. It's a transparent way. We have also been told, of course, it's a part of the agreement, we can't charge the academic institutions till September 2019. There's no revenue coming at this point in time. We are engaging with all the academic institutions to register with us so that we will be able to start earning something from September 2019 onwards.
What kind of costs are sitting in the P&L from these two business areas?
It is not substantial. Less than one crore.
Okay. Thank you very much.
Thank you.
The next question is from the line of Harimal Methani from Potential Investment. Please go ahead.
Yeah. Thank you for the call.
Thanks.
Yeah. Hello.
Hello. Thank you.
I just wanted to know in terms of the technology wise, how do we upgrade the entire thing in terms of the CDSL with reference to lot of new technologies coming and the intermediaries getting out of the chain. Do you see that as a threat to your business? Technology.
We don't see any threat to business. We are also upgrading our technology. People usually ask me about the blockchain, on two, three occasions also, I did speak about blockchain. It's not a stable technology as yet and not too many developers are there, not too many applications are also there. Thanks to Bitcoin, it has become a popular talking point and flavor of the month. Otherwise, it's not a mature application as yet. Even if one fine morning blockchain comes, there's hardly anything that they can do. They have to come via the regulatory jurisdictions and systems that are put in place. It's not just depository alone will do it. Even the depository participants should be compliant with that. Existing depository participants also have to tie up with the new depository unit if a new depository comes.
They don't going to invest additional money in a new depository. We are not worried about that front. Whatever changes that takes place in the technology front, we will be able to keep pace with that or maybe stay ahead of the technology changes that the competition may enforce or that may happen in this market.
Okay, sir. Thank you. Thanks for that.
Thank you.
Thank you. The next question is from the line of Abhishek Jain from Vallum Capital. Please go ahead.
Sir, with how many insurance companies you have been tied up perpetually for electronic policies. Can you just throw some light on the same and how CDSL is being placed over there?
Yeah. One minute. Hello. We have about 22 insurance companies which have signed up, life insurance companies, and we have 15 non-life who have signed up with us.
There are 18 non-life which are still under discussion. There are two insurance companies which are again under discussion.
Okay. How many are there, which have signed perpetual contracts with you?
There's nothing called perpetual contract or anything. They sign the contract. There's always a termination clause, isn't it? All these people are doing, some of them are active, some are not active.
Mm-hmm. Sir, actually, I earlier asked you are saying that 8.1% is the bond yield that you are getting, right? On the bonds.
Return on investment 8.18%.
Okay.
Not on bond. Altogether investment.
Okay. Can you just bifurcate that also, %?
What, you mean bond do you want separate? As he said that 90% of our investment is in FMP.
Okay. The substantial revenue comes from that, not from the bonds or anything.
How much is it?
Tax-free bonds are there. Few tax-free bonds, not a very big investment.
How much it is?
Investment. Some eight point something is there. 8.18. It comes to seven point something or whatever.
How much is it?
Tax-free is six point
Tax-free is 6.85.
Okay. Sir, can you just throw some light on the warehouse receipt market size in India and positioning of CDSL on the same?
You see, as I said that we have just started this initiative. We were told that the bank's pledge business at this point in time is about INR 60,000 crore and there's a scope for INR 1 lakh crore. These are all different people saying this number or some agency is there and which has put up some report and then based on that we are saying this. The ecosystem most important stakeholder is the banks. The banks are pledging either the commodities in the warehouses, and they should make it mandatory for them to pledge via the repository route. The discussions are on, WDRA itself is engaged with them, and hope that they will be seeing merit in doing via the repository route than what is happening at this point in time.
Okay. Sir, last question from my side is, how you see the progress is being done in the space for Demat for all, sir, your last commentary from the same. How far it has been gone? How this negotiation has been like? Hello?
Hello.
Yeah.
I'm sorry, I didn't get your point.
How much progress has been done in space for this Demat for all?
Demat, sir?
All.
All. Okay, single Demat account for all financial assets, you're saying?
Yeah, exactly.
The regulatory changes are yet to be announced. Once SEBI announces those changes, the other regulators will start doing the necessary things at their end also. To begin with, it will have to happen at the signal.
Okay. Thank you, sir.
Thank you.
Thank you. We take the last question from the line of Ayush Khaitan from Prosperous Invest. Please go ahead.
Congratulations on good set of numbers, sir. The question is, how many number of companies has shifted from slab basis to folio basis in our annual issuer charge? As folio basis generates higher revenue.
Out of total revenue of issuer charges, 17% of the companies will give me on a folio basis. It gives me 58% of total income issuer charges, and 83% companies are on a capital base, that is flat basis. It gives me 42% revenue from any issuer charges. Hello? Hello.
The current participant has moved out of the question queue.
Okay.
I now hand the conference over to Mr. P.S. Reddy for closing comments. Thank you and over to you, sir.
Thank you. Thank you everyone for participating in the call, thank you for your support also. There are a lot of you are invisible to us, I'm sure you have taken a keen interest in the company. We will do our best to stay ahead of competition and then meet the expectations of all the investors. Ultimately, the markets decide what is that we get at the end of the day. Thank you once again. Stay invested. I'm sure you are in good company. That's all I can say. Thank you.
Thank you.
Thank you.
Thank you very much. On behalf of Axis Capital Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.
Thank you, Sanketh. Thank you, Mr. Agarwal.
Thank you