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In-line performance, PAT up 40% YoY

* AAUM grew 36.4% YoY and 3.3% QoQ to INR 46.3t in 3QFY25. Equity AUM rose 51% YoY to INR25.6t.

* CAMS reported operating revenue of INR3.7b in 3QFY25 (in-line), up 28% YoY. For 9MFY25, operating revenue was up 29% YoY to ~INR10.7b.

* Total operating expenses rose 23% YoY to INR1.97b (in-line). Employee expenses/other expenses grew 20%/28% YoY to ~INR1.2b/INR772m.

* Strong revenue growth resulted in EBITDA of INR1.7b (in-line), up 34% YoY, with EBITDA margin at 46.7% (vs 44.7% in 3QFY24 and our est. at 46.8%). For 9MFY25, EBITDA rose 36% YoY to INR4.9b.

* Other income was up 51% YoY to INR149m (11% higher than est.).

* PAT increased 40% YoY to INR1.2b (in-line) in 3QFY25, driven by strong top-line growth. For 9MFY25, PAT rose 42% YoY to INR3.5b.

* The Board has approved an interim dividend of INR17.5/equity share.

Valuation and view

* Structural tailwinds in the MF industry are expected to drive absolute growth in MF revenue. With favorable macro triggers and the right investments, the non-MF share of revenues for CAMS is expected to increase in the next three to five years.

* We will update our estimates after the conference call scheduled for 30th Jan’25.

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