NSDL Q3 Profit Rises Nearly 30% To Rs 86 Crore

National Securities Depository Ltd. reported its financial performance for the third quarter of the fiscal year, with net profit rising 29.8% year-on-year to Rs 85.80 crore from Rs 66.09 crore in the same period last year.

Total income for the Mumbai-based depository increased by 16.2% to Rs 391.21 crore, compared to Rs 336.66 crore in the corresponding quarter of the previous year.

NSDL Q3 Highlights (Consolidated, YoY)

• Total income up 16.2% to Rs 391.21 crore versus Rs 336.66 crore.

• Net profit after tax up 29.8% to Rs 85.80 crore versus Rs 66.09 crore.

The earnings report comes as NSDL moves forward with its plans for an initial public offering. The Securities and Exchange Board of India granted approval for the company's IPO on Oct. 8, 2024. The public issue will consist solely of an offer for sale component, meaning existing shareholders will divest their holdings, with no fresh equity being issued.

SEBI issued an observation letter on Sept. 30, signalling its approval for the public offering. In its draft red herring prospectus filed in July 2023, NSDL stated it would offer up to 5.72 crore equity shares with a face value of Rs 2 per share.

ICICI Securities Ltd. is the lead book-running manager for the IPO, along with Axis Capital Ltd., SBI Capital Markets Ltd., HDFC Bank Ltd., HSBC Securities and Capital Markets (India) Pvt. Ltd., Motilal Oswal Investment Advisors Ltd., and IDBI Capital Markets & Securities Ltd.

NSDL is India's largest depository, measured by multiple parameters, including the number of issuers, active instruments, market share in demat settlement volume, and the value of assets under custody, as of March 31, 2023.