Computer Age Management Services (CAMS) will grow in early teens in FY22, Anuj Kumar, chief executive officer (CEO), told CNBC-TV18.
A big new fund offer (NFO) rush is seen on the street with a mop-up for August stands at over Rs 23,000 crore. This is beneficial for CAMS, a mutual fund transfer agency to the Indian asset management companies. CAMS derives 90 percent of its revenue from mutual funds.
“We have been growing at about early to mid-teens over a medium-term period. The last year’s been an aberration; the pandemic (COVID-19) had an offsetting influence and from physical to electronic transactions, they suffered a revenue setback for us, which is the reason we have not seen large revenue growth in the last two years. However this year, some of those trends will definitely start changing and we should see a smart revenue pickup within the year (FY22) in early teens,” Kumar said.
On the mutual fund market, he said, “In the last 5 months, a smart uptick is seen in the number of systematic investment plans (SIPs), the industry is bursting with Rs 25 lakh number almost every month. Equity net flows, riding on the NFO boom and even otherwise, have become significantly positive, almost 1 lakh crore of net flows coming in, in the first 5 months.”
For more details, watch the video