CARE Ratings Ltd · NSE:CARERATING
CARE Ratings — Q3 FY24 Earnings Presentation
27 slides from CARE Ratings's earnings presentation, January 2024
Slide 1: CARE Ratings Limited Investor Presentation Q3 & 9M FY24
CARE Ratings Limited Investor Presentation Q3 & 9M FY24
Slide 2: Macro-Economic Indicators
Macro-Economic Indicators 2
Slide 3: Fundraising Activity Moderates in Q3FY24
FUNDRAISING ACTIVITY MODERATES IN Q3FY24 Corporate Bond Issuances CP Issuances Corporate Bond Issuances Moderate in Q3 FY24; Commercial Paper Issuances Moderate But Remain Upbeat in 9M FY24 (Rs. Lakh Crore) (Rs. Lakh Crore) 7.20 10.5 10.0 5.90 2.70 2.40 3.2 2.9 Q3FY23 Q3FY24 9MFY23 9MFY24 Q3FY23 QFY
Slide 4: Bank Credit to Industry Moderates
BANK CREDIT TO INDUSTRY MODERATES Sectoral Deployment of Bank Credit Sectoral Deployment of Industrial Credit Data as on November Data as on November 25 30 27.9 21.3 21.9 25 20 19.5 20 17.2 15 13.0 Y-o-Y % Y-o-Y % 15 12.0 10 10.3 6.1 10 5 3.6 5 0 0 Industry (25.1) Services (29.0) Micro and Small (19
Slide 5: Government Capex Supports Investment
GOVERNMENT CAPEX SUPPORTS INVESTMENT Centre’s Capex Focus Continues Gross Fixed Capital Formation 25% 3.5% 25 20.4 20% 3.0% 20 15% 2.5% 15 Y-o-Y % 12.4 10% 2.0% 11.0 9.6 10 8.9 8.0 8.0 5% 1.5% 5.0 5 0% 1.0% FY18 FY19 FY20 FY21 FY22 FY23 (RE) FY24 (BE) 1.2 0 Mar-22 Mar-23 Sep-21 Dec-21 Sep-22 Dec-22
Slide 6: Investment Projects Slow; Capacity Utilization Moderates
INVESTMENT PROJECTS SLOW; CAPACITY UTILIZATION MODERATES New Project Announcements Capacity Utilisation 80 14 75 14.5 12 70 73.6 10 65 Rs. Lakh Crore 9.4 9.7 8 60 % 6 7.4 6.8 55 5.8 4 4.6 50 4.4 4.4 4.3 2 2.8 45 1.9 2.0 2.2 0 1.3 40 Jun-20 Jun-21 Jun-22 Jun-23 Sep-20 Mar-21 Sep-21 Mar-22 Sep-22 Mar-
Slide 7: Financials
Care=dge RATINGS. Financials QBF Ia Zee NE «
Slide 8: Standalone: 9MFY24 Key Highlights
STANDALONE: 9MFY24 KEY HIGHLIGHTS EBITDA PAT Rs. 92.54 Cr Rs. 84.61 Cr Operating (+8% YoY) (+9% YoY) Income Rs. 208.27 Cr (+15% YoY) EBITDA Margin PAT Margin 44% 35% 8
Slide 9: Standalone: Q3FY24 Key Highlights
STANDALONE: Q3FY24 KEY HIGHLIGHTS EBITDA PAT Rs. 27.04 Cr Rs. 22.23 Cr Operating (+22% YoY) (+4% YoY) Income Rs. 66.68 Cr (+22% YoY) EBITDA Margin PAT Margin 41% 29% 9
Slide 10: Profit & Loss Statement: 9MFY24
PROFIT & LOSS STATEMENT: 9MFY24 Standalone Consolidated Profit and Loss (Rs. Crs) 9MFY24 9MFY23 YoY 9MFY24 9MFY23 YoY Total Operating Income (TOI) 208.27 180.79 15% 241.54 201.48 20% Other Income 33.29 26.98 23% 36.40 27.57 32% Total Income 241.56 207.77 16% 277.94 229.05 21% Total Expenses 125.98 1
Slide 11: Profit & Loss Statement: Q3FY24
PROFIT & LOSS STATEMENT: Q3FY24 Standalone Consolidated Profit and Loss (Rs. Crs) Q3FY24 Q3FY23 YoY Q3FY24 Q3FY23 YoY Total Operating Income (TOI) 66.68 54.56 22% 78.68 62.14 27% Other Income 10.58 11.03 (4%) 13.68 11.59 18% Total Income 77.26 65.59 18% 92.36 73.73 25% Total Expenses 45.52 38.30 19%
Slide 12: About Us
About Us
Slide 13: About Us: Serving the financial markets for over three decades
ABOUT US Who Are We Established in 1993, we are India’s second largest credit rating agency. With an established presence in the credit ratings industry, we are now leveraging and diversifying into knowledge-based analytical businesses like Research and Advisory, Sustainability and Analytics. We are
Slide 14: CareEdge Turns 30
CareEdge TURNS 30 1993-1996 1997-2000 2001-2004 Commenced Rating Operations Launched ‘CARE Loan Ratings’ for rating term loans Founding member of Association of Credit Rating Agency Expansion of ratings operations to rating of toll Ventured into Advisory business and bagged 13 in Asia (ACRAA) roads,
Slide 15: CareEdge Group: Foresight Backed by Expert Insights
CareEdge GROUP: FORESIGHT BACKED BY EXPERT INSIGHTS CareEdge Group CARE Ratings Limited (Parent Company) Subsidiaries 100% 100% 51% 78% CARE Analytics CARE CARE Ratings CARE Ratings and Advisory Private ESG Rating Limited (Nepal) Limited (Africa) Limited Private Limited 100% CARE Ratings South Afric
Slide 16: Ratings Business
RATINGS BUSINESS CareEdge Ratings - India CareEdge Ratings – Africa (Subsidiary of CARE Ratings Ltd. with 78% stake) ▪ India’s second largest credit rating agency with a track record of rating companies belonging to diverse ▪ Provides ratings for various instruments such as Bonds, Debentures, sector
Slide 17: Analytics and Advisory - ESG & Sustainability Solutions
ANALYTICS AND ADVISORY - ESG & SUSTAINABLITY SOLUTIONS ESG Offerings Clientele Analysis and performance tracking for pre-determined KPIs along E, S & G Funds, FIs and Corporates ESG Benchmarking parameters, along with a comparison against industry leaders and industry peers seeking ESG data ESG GAP
Slide 18: Analytics and Advisory – Consulting & Research
ANALYTICS AND ADVISORY – CONSULTING & RESEARCH CONSULTING RESEARCH Provides advisory services to Corporates, Financials Institutions, Banks and Institutional Investors Provides customised research services to Indian and Multinational corporates based on their specific needs Offering services in the
Slide 19: Analytics and Advisory - Risk & Analytics
ANALYTICS AND ADVISORY - RISK & ANALYTICS Analytics Driven Risk Solutions 15+ years global experience in providing cutting edge Risk & Compliance solutions to Banks and Financial Institutions Sustained presence in more than 10 countries 80+ implementations across the globe Experienced professionals
Slide 20: Outreach Activities
Care=dge RATINGS Outreach Activities
Slide 21: Outreach Activities: Q3FY24
OUTREACH ACTIVITIES: Q3FY24 Guest Speakers Webinars: Moderated by Corporate India - On a Steady Course View 1 Amid Challenges?- Mr. Rajiv Sabharwal Mr. Sandip Ghose Mr. Ramkumar Ramaswamy Mr. Kailash Vaswani Sachin Gupta Ma na ging Director Ma na ging Director Chi ef Financial Officer, Jindal Steel
Slide 22: Outreach Activities: Q3FY24
OUTREACH ACTIVITIES: Q3FY24 CareEdge as Knowledge Partner Accolades • CareEdge partnered with CNBC-TV18 as the Knowledge Partner • CareEdge Analytics and Advisory achieved the 90th rank in the Chartis for the ICAI CA 40 Under 40 Awards. In this role, CareEdge RiskTech100 2024, ascending from 93rd th
Slide 23: Outreach Activities: Q3FY24
OUTREACH ACTIVITIES: Q3FY24 Knowledge Sharing Forums and Speaker Invitations: • Mehul Pandya, MD & CEO of CareEdge, advocated for trade as India's growth catalyst in The Times Of India. • Mehul Pandya, MD & CEO of CareEdge, spoke at USIIC's event honouring NASA's Dr. Ravi Margasahayam. • Sachin Gupt
Slide 24: Outreach Activities: Top Reports
OUTREACH ACTIVITIES: Q3FY24 Top Reports: Credit quality assessment for H1FY24 View Canada Stir Unlikely to Hit Specialised Education Loan NBFCs Portfolio View Unsecured Lending - Opportunity for Growth or Looming Risk? View Hospital Industry in India Set to Grow at 12 percent CAGR till FY26 View Net
Slide 25: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by CARE Ratings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 26: Contact Us
CONTACT US Company : Investor Relations Advisors : CARE Ratings Limited Strategic Growth Advisors Private Limited CIN: L67190MH1993PLC071691 CIN: U74140MH2010PTC204285 Ms. Ami Parekh / Mr. Chaitanya Satwe investor.relations@careedge.in ami.parekh@sgapl.net / chaitanya.satwe@sgapl.net +91 80824 66052
Slide 27: Thank You!
Thank You! About Us CareEdge is a knowledge-based analytical group that aims to provide superior insights based on technology, data analytics and detailed research. CARE Ratings Ltd, the parent company in the group, is one of the leading credit rating agencies in India. Established in 1993, it has a