NSDL Revenue Inflows Dependent On GDP Growth, Market Sentiment: CEO Vijay Chandok After D-Street Debut
Vijay Chandok, managing director and chief executive officer of NSDL in a conversation with NDTV Profit, breaks down revenue inflows and growth drivers.
Share of National Securities Depository Ltd., after making a stellar debt with 10% premium on the BSE, has already marked gains of over 3% in trade so far. After the primary market buzz, Vijay Chandok, managing director and chief executive officer of NSDL in a conversation with NDTV Profit, breaks down revenue inflows, structure and growth drivers in the future.
"To me this whole IPO listing process is a requirement and was completed in a time bound manner. We get a sense of immense responsibility, with the shareholders expanding to 10 lakhs," he said on the D-Street debut.
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NSDL's Revenue Structure
Talking about the revenue generation structure of the company, Chandok divides the system into recurring and transactional sources of revenue.
"Our business can be divided into two categories. The revenues are recurring, which is at 42%. And then there are revenue that are transactional in nature, which are approximately 58%. There are also components that have a dependency on the markets," he explained.
Zooming in on the components, that have driven revenue in the past, he attributes the performance to positive sentiment in market as well. "When cash markets improve, then there are IPOs. It amplifies revenue on the corporate actions. So there are components of fees that get impacted," he said.
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NSDL Growth Outlook
The MD said that there are a few elements that affect the revenue going ahead. "Over the last three years our revenue growth has been around 19% while the profit after tax growth has been around 21% and this has come in at the point of time where the capital markets have done really well," he said.
Looking at the way forward, the CEO said that key economic cues, market sentiment and market action will drive revenue inflows. "We are not giving any guidance, but we are a player with a fair component of recurring revenue and there are parts that depend on the market. There is a secular or structural opportunity that we have that kicks in. The future depends on what happens in capital markets and how the GDP grows," he concluded.
