Ratings agency CARE Ratings declares Q3FY22 result: Consolidated results CARE Ratings Ltd. consolidated total income decreased by 1.2% from Rs 63.72 crore in Q3 FY21 to Rs 62.96 crore in Q3 FY22. Total expenses Increased by 9.2% during this period. Operating profit decreased by 18% from Rs 18.26 crore to Rs 14.97 crore and net profit after tax from Rs.18.94 crore to Rs 14.90 crore, a decrease of 21.3%. The consolidated financials include those of CARE Ratings Ltd. and its four subsidiaries. For 9M FY22 total income increased by 3. 7% and net profit after tax decreased 17%. CARE Ratings Ltd standalone total income increased by 1.1% from Rs 54.83 crore in Q3 FY21 to Rs 55.45 crore in Q3 FY22. Total expenses have increased by 5.4% during this period. Operating profit increased by 1.9% from Rs 14.65 crore to Rs 14.93 crore while net profit after tax decreased from Rs 15.81 crore to Rs 14.90 crore. Operating profit margin and net profit margin were 30.7% and 26.9% respectively in Q3 FY22. For 9M FY22 total income increased by 3.73 crore and net profit after tax decreased by 8.18 crore respectively. Operating profit margin and net profit margin were at 35.8% and 30.7% respectively. Despite the advancements, output of various segments remained below pre-pandemic levels during the third quarter of FY22. Also, the pace of improvement has been uneven across segments with some seeing robust growth while some have shown modest advances. To add to that the emergence of the new variant of the Covid-19 virus towards the end of the third quarter and the resultant intermittent restrictions has been a drag on activity, underscoring the fragile nature of recovery and the persistent economic and business uncertainty. Fund raising by businesses, which has a direct bearing on our business, in the quarter gone by presented a mixed picture. While fund raising from the corporate bond markets was subdued, it was strong for commercial paper. Bank credit demand by corporates, although restrained, picked up pace. Corporate bond issuances during the quarter totalled Rs 1.45 lakh crore which was 19% less than the issuances in the preceding quarter and 15% lower than a year ago (Q3 FY21). Issuances in the first nine months of FY22 at Rs 4.14 lakh crore has been 26% lower than last year (9M FY21) 'The strengthening of the economy bodes wells for a revival in the investment cycle in the coming future. Moreover, with the government expected to maintain emphasis on public investment led economic growth in the upcoming budget, private investment could eventually crowd in. This in turn holds encouraging potential for the debt and credit markets. That said, we are cautious in our optimistic outlook as we need to be watchful how the pandemic triggered episodic disruptions play out on the recovery' said Ajay Mahajan, MD & CEO of CARE Ratings Ltd. He further added 'Even as we bring in new business, we continue to pay due attention to our surveillance assignments. Also, with our subsidiaries business gaining reassuring traction, our resolve and focus on diversification and developing new viable businesses opportunities for the CareEdge Group has strengthened'. Result PDF
Financial Highlights for Q2 FY22 and H1 FY22 (Consolidated): Total income decreased by 1.9% from Rs. 83.87 crore in Q2 FY21 to Rs. 82.29 crore in Q2 FY22. Total expenses Increased by 23.8% during this period. Operating profit decreased by 20% from Rs. 41.92 crore to Rs. 33.53 Crore Net profit from Rs.35.84 crore to Rs. 27.07 crore, a decrease of 24.5%. For H1 FY22 total income increased by 6.15% and net profits decreased by 15.2 %. Financial Highlights for Q2 FY22 and H1 FY22 (Standalone): Total income decreased by 4.8% from Rs. 79.65 crore in Q2 FY21 to Rs. 75.83 crore in Q2 FY22. Total expenses have increased by 19.8% during this period. Operating profit decreased by 18.9% from Rs. 43.42 crore to Rs. 35.20 crore Net profit decreased from Rs. 38.00 crore to Rs. 29.76 crore. Operating profit margin and net profit margin were 50.8% and 39.3% respectively in Q2 FY22. For H1FY22 total income increased by 3.12 crores and net profits decreased by 7.27 crores respectively. Operating profit margin and net profit margin were at 38.1% and 32.5% respectively. 'The broad-based economic recovery is encouraging and could bear good tidings for a revival in the investment cycle in the next few months. This in turn holds promise for the debt and credit markets. However, we would be cautious in our outlook as we need to see how demand in the festival cum post-harvest season plays off. While we would be working towards expediting our surveillance assignments and bringing in new business, we are sanguine on our subsidiary businesses accelerating in the next two quarters' said Ajay Mahajan, MD & CEO of CARE Ratings. He further added, 'We remain focused on our stated goal of diversification and developing other viable businesses for the CARE Group'. Result PDF