Other financial services firm CARE Ratings announced Q2FY23 results: Standalone: CARE Ratings’ standalone income from operations was up by 12% to Rs 77.49 crore in Q2FY23, compared with Rs 69.30 crore in the corresponding quarter of the previous year. Bank loan ratings segment led this growth, with sustained momentum in initial ratings business. Total income was up by 14% to Rs 86.12 crore in Q2FY23, compared with Rs 75.83 crore in Q2FY22. Total expenses have decreased by 3% during this period compared to Q2FY22. Operating profit increased by 27% to Rs 44.68 crore in Q2FY23 from Rs 35.19 crore in Q2FY22. Net profit increased by 29% to Rs 38.47 crore in Q2FY23 from Rs 29.76 crore in Q2FY22. Operating profit margin and net profit margin were 58% and 45% respectively in Q2FY23, which reflected good growth compared to the corresponding quarter of the previous year. In H1, income from operations was up by 14% to Rs 126.23 crore in H1FY23, compared with Rs 111.07 crore in the corresponding half-year of the previous year. Total income was up by 14% to Rs 142.19 crore in H1FY23, compared with Rs 125.25 crore in H1 FY22. Total expenses have decreased by 8% during this period compared to H1FY22 (majorly due to the ESOP impact of resigned employees in Q1 FY23) Operating profit increased by 51% to Rs 63.71 crore in H1FY23 from Rs 42.31 crore in H1FY22. Net profit increased by 39% to Rs 56.55 crore in H1FY23 from Rs 40.65 crore in H1FY22. Operating profit margin and net profit margin were 50% and 40% respectively in H1FY23, which reflected good growth compared to the corresponding half-year of the previous year. Consolidated: CARE Ratings’ consolidated total income was up by 13% to Rs 93.23 crore in Q2FY23, compared with Rs 82.29 crore in Q2FY22. Operating profit increased by 25% to Rs 42.00 crore in Q2FY23 from Rs 33.53 crore in Q2FY22. Net profit increased by 29% to Rs 34.86 crore in Q2FY23 from Rs 27.07 crore in Q2FY22. In H1, total income increased by 12% to Rs 155.32 crore in H1FY23 from Rs 138.81 crore in H1 FY22. Operating profit increased by 38% to Rs 58.13 crore in H1FY23 from Rs 42.17 crore in H1FY22. Net profit increased to Rs 48.99 crore in H1FY23 from Rs 38.62 crore in H1FY22, an increase of 27%. “India’s economy is recording relatively healthy growth even in the midst of global headwinds. However, we need to be cautious given the strong interlinkages of Indian economy with the global economies. While the global demand is slowing down, the most crucial aspect would be for the domestic demand to continue recovering. With the deleveraging in the last few years and rising capacity utilisation level, we can expect the private capex cycle to pick up in the next few months," said Mehul Pandya, MD & CEO, CARE Ratings Ltd. Result PDF
Financial services company CARE Ratings announced Q1FY23 results: Standalone: Total income from operations was up 17% to Rs. 48.74 crore in Q1FY23, compared with Rs. 41.77 crore in the corresponding quarter of the previous year. Total income was up 13% to Rs.56.07 crore in Q1FY23, compared with Rs. 49.42 crore in Q1 FY22. Total expenses have decreased by 13% during this period compared to Q1FY22, majorly due to ESOP cost reversal attributable to resigned employees (refer to note 8 of published results for details). Operating profit increased by 168% to Rs. 19.04 crore in Q1FY23, compared with Rs. 7.11 crore in the corresponding quarter of the previous year. Net profit increased by 66% to Rs. 18.08 crore in Q1FY23 from Rs. 10.89 crore in Q1FY22. Operating profit margin and net profit margin were 39% and 32% respectively in Q1FY23 Consolidated: CARE Ratings consolidated total income increased by 10% to Rs. 62.09 crore in Q1 FY23 from Rs. 56.52 crore in Q1 FY22. Operating profit increased by 87% to Rs. 16.13 crore in Q1FY23 from Rs. 8.64 crore in Q1FY22. Net profit rose to Rs. 14.14 crore in Q1FY23 from Rs. 11.55 crore in Q1FY22, an increase of 22%. "The domestic fundamentals are showing gradual improvement and the private investment is expected to revive with capacity utilisation level inching towards 75%. However, India's economy needs to brace up for prevailing headwinds in the form of slowing global growth, high inflation and tighter liquidity for a major part of the current financial year. The global uncertainties, high commodity prices and rising interest rates would be dampening factors for investor sentiments. This notwithstanding, our initial ratings business witnessed good growth from the bank loan ratings and securitization segments," said Mehul Pandya - Managing Director & CEO, CARE Ratings Limited. Result PDF
CARE Ratings declares Q4FY22 result: Standalone results: CARE Ratings standalone total income decreased by 1.6% from Rs.251.61 crore in FY21 to Rs.247.63 crore in FY22, majorly due to certain reversals of provision last year which was not there in current year. However, the rating income has increased by 4% in FY22 largely contributed by increase in initial ratings business. Total expenses have marginally increased by 1.3% during this period. Net profit has been almost at same level at Rs.84.47 Crore in FY22. Operating profit margin and net profit margin were 39.2% and 34.1% respectively in FY22 and are at almost same level as last year. For the fourth quarter total income decreased by 10.5% from Rs. 74.82 crore to Rs. 66.94 crore which is largely impacted by reversal of provision last year which was not there in the current year. Net profit increased by 30.9% from Rs. 22.09 crore Q4FY21 to Rs. 28.92 crore in Q4FY22. Consolidated Results: CARE Ratings consolidated total income decreased by 1.8% percent from Rs. 279.74 Crore in FY21 to Rs. 274.82 crore in FY22. However, total income has increased by 1.5% from last year excluding the provision reversal last year. Total expenses have increased by 9.4% during this period. Net profit decreased from Rs.90.97 crore to Rs.76.83 crore mainly due to provisions made on conservative basis in one of our subsidiaries for the exposure to Sri Lanka business. Hence, net of provisions, residual exposure to Sri Lanka stands at Rs. 2.36 Cr. We are hopeful of recovery once the situation in Sri Lanka improves For the fourth quarter total income decreased by 14.3% from Rs. 85.25 crore to Rs. 73.06 crore which is largely impacted by reversal of provision last year, which was not there in current year, while net profit decreased from Rs. 26.49 crore to Rs. 23.31 crore as majority of provisions mentioned above have been taken in this quarter. The Board of Directors has recommended a final dividend of Rs. 10/- per share (of Rs. 10/- face value) which will take the total dividend declared for the year to Rs. 17/- per share ‘While the Indian economy is relatively better placed amidst global turbulence, we need to be cautious of the global headwinds. Driven by supply bottlenecks and the war situation, inflation has emerged as a big cause of concern not just for India but globally. The resultant monetary tightening globally and its impact on economic growth and financial markets warrants careful monitoring. The Government has strong capex plans for FY23 and the private investors were also showing encouraging intent of investment. However, the recent global and domestic uncertainties could cause some delay in private investment pick-up, said Ajay Mahajan, MD and CEO of CARE Ratings Ltd. ‘We believe that given our focus on new ratings business and tapping new opportunities for non-ratings business, we should be able to remain on track for developing CareEdge as an Analytics focussed organisation’, he further added. Result PDF