CARE Ratings Ltd Share Price – NSE  /  BSE

Credit Rating Agencies, Small Cap

CARE Ratings has allotted 15,801 equity shares under ESOS on 12 April 2024. The paid up equity share capital has increased to Rs. 29,86,79,140/- consisting of 2,98,67,914 equity shares of Rs. 10/- each.

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Revenue from operations jumped 22% YoY to Rs 66.68 crore in Q3 FY24.

EBITDA stood at Rs 27.04 crore in Q3 FY24 as compared with Rs 22.25 crore in Q3 FY23, registering the growth of 22%. EBITDA margin stood at 41% in Q3 FY24.

Fundraising by businesses witnessed a moderation in Q3 FY24 with corporate bond and commercial paper issuances declining by 11.2% and 9%, respectively on a year-on-year basis.

“Bank credit growth has remained healthy, rising by 16.2% in FY24 (as on November) driven by the personal loans and services segment. Industrial credit grew by 6.1% in FY24 (as on November), lower than 13% growth in the year ago period. Credit to large industries remained muted with a growth of 3.6% in FY24 (as on November). However, it's crucial to note that the growth figures in FY24 may appear skewed compared to FY23 due to the influence of the base effect,” the company stated in exchange filing.

The company said that the corporate performance too is reflecting the improving trend as depicted by the CareEdge Ratings credit ratio (ratio of upgrades to downgrades) which has been persistently above unity since H2FY21. The entities in sectors like auto components, iron & steel, real estate, hospitality, healthcare and logistics have witnessed most upgrades. The improved credit ratio indicates that cash flow generation of corporates have remained robust, resulting in deleveraged and strong balance sheets.

Mehul Pandya, managing director & CEO of CARE Rating said, “The other income, which is driven by interest income grew on back of better yield generated on deposits. On cost parameters, the increase in employee cost is attributed to a talent management initiative.

We reiterate that our financial performance should be assessed on a cumulative basis rather than a quarterly basis. Nevertheless, our company on a standalone basis recorded a healthy YoY growth of 22% in income from operations for Q3 FY24. The consolidated operating income also recorded a YoY growth of 27% for Q3FY24.

With the government intent to maintain and intensify its push for infrastructure investments, we expect the infrastructure financing to continue. Further, with the recent RBIs directive on change in risk weight for certain asset classes, we expect some growth moderation in the NBFC segment.”

Meanwhile, the company’s board has approved infusion of capital in CARE Analytics and Advisory (CAAPL), wholly owned subsidiary of the company to meet various revenue expenditures and product development.

Total cash consideration is upto Rs 9 crore against issue of 90,00,000 optionally convertible cumulative redeemable preference shares of Rs 10 per share.

CARE Ratings has established itself as one of the leading credit rating agencies in India. It provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations.

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Net profit of CARE Ratings rose 47.08% to Rs 23.46 crore in the quarter ended December 2023 as against Rs 15.95 crore during the previous quarter ended December 2022. Sales rose 26.60% to Rs 78.68 crore in the quarter ended December 2023 as against Rs 62.15 crore during the previous quarter ended December 2022.

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Net profit of CARE Ratings rose 3.88% to Rs 22.23 crore in the quarter ended December 2023 as against Rs 21.40 crore during the previous quarter ended December 2022. Sales rose 22.24% to Rs 66.68 crore in the quarter ended December 2023 as against Rs 54.55 crore during the previous quarter ended December 2022.

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