CAMS shares decline nearly 7% post Q2 results, dividend announcement

Shares of Computer Age Management Services Ltd. (CAMS) declined nearly 7% on Wednesday, October 29, after the company reported steady growth in its second quarter results.

It also declared an interim dividend of ₹14 per share. Earlier this month, the company had also announced a stock split in a 1:5 ratio.

CAMS reported its all-time high quarterly revenue of ₹376 crore in the second quarter, which increased 6.4% sequentially.

Its earnings before interest, tax, depreciation and amortisation (EBITDA) increased 8.6% to ₹167.6 crore from ₹154.29 crore from the previous quarter and margin expanded by 93 basis points to 44.49% from 43.57% in the previous quarter. This was supported by higher operating leverage.

The company's profit after tax (PAT) was up 5.4% sequentially at ₹113.9 crore in the September quarter.

While its revenue was below expectations, EBITDA and PAT were in-line with estimates.

Its overall assets under management (AUM) increased 7% sequentially to ₹52.1 lakh crore, which was in-line with the industry AUM growth.

Its equity net sales were at an all-time high of ₹1.02 lakh crore, up 77% from the previous quarter.

Its mutual fund (MF) revenue grew 6.4% sequentially and its non-MF revenue increased 17.9% sequentially, led by CAMSKRA, which was up 46% sequentially.

CAMS Alternatives posted its highest-ever quarterly revenue.

The company's market share is steady at 68%.

CAMS shares declined 6.7% to hit an intraday low of ₹3,718.1 apiece on Wednesday. The stock was down 5.2% at ₹3,777 apiece around 9.25 am. It has declined 26.3% this year, so far.

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