CAMS shares in focus post Q2 results, dividend announcement

Shares of Computer Age Management Services Ltd. (CAMS) are in focus 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 ended the previous session 0.6% up at ₹3,989.9 apiece. The stock has declined 21.8% this year, so far.

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