Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q4 FY24 Earnings Presentation
37 slides from Care Ratings's earnings presentation, May 9, 2024
Slide 1: Exchange cover letter for press release and investor presentation
CareEdge RATINGS Date: May 9, 2024 SE/2024-25/12 To, The General Manager The National Stock Exchange India Ltd. Corporate Relation Department Listing Department BSE Limited Exchange Plaza Phiroze Jeejeebhoy Towers Bandra Kurla Complex 14th Floor, Dalal Street Bandra (East) Mumbai 400 001 Mumbai 400
Slide 2: Investor Release: standalone financial highlights
CareEdge CARE Ratings Limited Ratings • Analytics • Consulting • Sustalnabillty Investor Release: 9th May 2024, Mumbai CARE Ratings Limited (NSE: CARE, BSE: 534804) The Board of Directors of CARE Ratings Limited have declared its audited financial results for quarter & full year ended 31 st March 20
Slide 3: Press release: management commentary on FY24
CareEdge CARE Ratings Limited Ratings • Analytics • Consulting • Sustalnabillty In FY24, the Indian economy demonstrated resilience amidst various challenges, including weak external demand, geopolitical uncertainties, and weather-related adversities. Despite these obstacles, the GDP growth remained
Slide 4: Key new initiatives
CareEdge CARE Ratings Limited Ratings • Analytics • Consulting • Sustalnabillty Some of the key new initiatives: CARE ESG Ratings Ltd. to function as a Category I ESG Ratings Provider after having received approval from SEBI on May 2, 2024. CareEdge shall offer Sovereign Credit Ratings & Global Scal
Slide 5: About Us
CareEdge CARE Ratings Limited Ratings • Analytics • Consulting • Sustalnabillty About Us CareEdge is a knowledge-based analytical group offering services in Credit Ratings, Analytics, Consulting and Sustainability. Established in 1993, the parent company CARE Ratings Ltd . (CareEdge Ratings) is Indi
Slide 6: CARE Ratings Limited Q4 & FY24
CareEdge Ratings • Analytic s • Con sulting • Sustainability CARE Ratings Limited Investor Presentation Q4 & FY24
Slide 7: Macro-Economic Indicators
Macro-Economic Indicators 2
Slide 8: Fundraising Activity in the Economy
FUNDRAISING ACTIVITY IN THE ECONOMY CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Corporate Bond Issuances Commercial Paper Issuances Corporate Bond Issuances Up by 19% in FY24, & 10% in Q4FY24 CP Issuances Stable in FY24, & Up by 16% in Q4FY24 (Rs. Lakh Crore) (Rs. Lakh Crore) 10.2 13
Slide 9: Lead Indicators: IIP, GST, E-Way Bills & PMI
LEAD INDICATORS: IIP, GST, E-Way Bills & PMI CareEdge Ratings • Ana lytics • Consulting • Sustainabilily IIP Growth Holds Up Well GST Revenue & E-Way Bills Upbeat Manufacturing & Services PMI Stay in the 14 2.5 12 Expansionary Zone 11.9 2.1 65 12 10.9 2.0 1.9 10 1.7 1.7 1.6 1.7 1.7 1.8 60.8 10 1.6 1
Slide 10: Bank Credit Offtake
BANK CREDIT OFFTAKE CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Industrial Credit Growth Industrial Credit Growth Improves, 16 Credit to Services Stays Healthy 14.9 25 14 13.2 13.2 12.0 19.6 20.2 12 20 10 Y-o-Y % 15 8 Y-o-Y % 7.0 10 8.5 6 5.6 5 4 3.1 2 0 Industry Services 0 Micro & S
Slide 11: Government Capex Focus Continues
GOVERNMENT CAPEX FOCUS CONTINUES CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Centre’s Capex (% GDP) Budgeted to Rise Further in Growth in Gross Fixed Capital Formation FY25 20 17.5 4.0 3.4 15 3.5 3.2 11.2 3.0 2.7 10.2 2.5 10 2.5 2.1 6.6 Y-o-Y % 2.0 % 1.6 1.7 5 1.5 1.0 0.5 0.0 0 -5 -1
Slide 12: Investment Announcements Rise; Capacity Utilization Improves
INVESTMENT ANNOUNCEMENTS RISE; CAPACITY UTILIZATION IMPROVES CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Private Sector Leads Investment Announcements; Manufacturing Sector Capacity Utilisation Improves Government Drives Project Completions 80 18 16.0 74.7 16 75 14 11.4 Rs Lakh Crore
Slide 13: Financials
Financials Ltt Lil al © &
Slide 14: Standalone: Q4 & FY24 Key Highlights
STANDALONE: Q4 & FY24 KEY HIGHLIGHTS CareEdge Ratings • Ana lytics • Consulting • Sustainabilily ~ '\J37 Revenue Revenue from from Ops Ops EBITDA PATr Q4 FY24 FY24 Q4 FY24 FY24 Q4 FY24 FY24 Rs. 74.80 Cr Rs. 283.07 Cr Rs. 35.00 Cr Rs. 127.54 Cr Rs. 34.83 Cr Rs. 119.44 Cr YoY YoY YoY YoY YoY YoY 10% 1
Slide 15: Consolidated: Q4 & FY24 Key Highlights
CONSOLIDATED: Q4 & FY24 KEY HIGHLIGHTS CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Revenue Revenue from from Ops Ops EBITDA EBITDA PAT Q4 FY24 FY24 Q4 FY24 FY24 Q4 FY24 FY24 Rs. 90.15 Cr Rs. 331.68 Cr Rs. 29.03 Cr Rs. 112.13 Cr Rs. 24.55 Cr Rs. 102.56 Cr YoY YoY YoY YoY YoY YoY 16% 1
Slide 16: Profit & Loss Statement: FY24
PROFIT & LOSS STATEMENT: FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Standalone Consolidated Profit and Loss (Rs. Crs) FY24 FY23 YoY FY24 FY23 YoY Total Operating Income (TOI) 283.07 248.84 14% 331.68 278.99 19% Other Income 46.96 37.11 27% 46.69 37.94 23% Total Income 330.03 28
Slide 17: Profit & Loss Statement: Q4FY24
PROFIT & LOSS STATEMENT: Q4FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Standalone Consolidated Profit and Loss (Rs. Crs) Q4FY24 Q4FY23 YoY Q4FY24 Q4FY23 YoY Total Operating Income (TOI) 74.80 68.05 10% 90.15 77.51 16% Other Income 13.67 10.13 35% 10.29 10.37 (1%) Total Income 88
Slide 18: About Us
About Us
Slide 19: Serving the financial markets for over three decades
ABOUT US CareEd R•Uoo< • A"'lyUe< • Coo<,IUog • r ge Sustainabilily 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
Slide 20: CareEdge Journey
CareEdge Journey CareEdge Ratings • Ana lytics • Consulting • Sustainabilily 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 in Asia (ACRAA) • Expansion of ratings operations to
Slide 21: Key Highlights
KEY HIGHLIGHTS CareEdge Ratings • Ana lytics • Consulting • Sustainabilily • CARE ESG Ratings Limited to • CareEdge shall offer Sovereign • CARE Ratings (Africa) Private Limited function as a Category I ESG Credit Ratings & Global Scale signed an MoU with African Peer Ratings Provider after having R
Slide 22: CareEdge Group: Foresight Backed by Expert Insights
CareEdge GROUP: FORESIGHT BACKED BY EXPERT INSIGHTS CareEdge Ratings • Ana lytics • Consulting • Sustainabilily CareEdge Group CARE Ratings Limited (Parent Company) Subsidiaries 100% 100% 100% 78% 51% CARE Analytics CARE CareEdge Global IFSC CARE Ratings CARE Ratings and Advisory Private ESG Ratings
Slide 23: Ratings Business
RATINGS BUSINESS CareEdge Ratings • Ana lytics • Consulting • Sustainabilily 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 ratin
Slide 24: Rating Stability: Better Than Industry Average
RATING STABILITY (%) : BETTER THAN INDUSTRY AVERAGE CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Average One-Year Stability rates for the last 5 Financial Years' Period 100 97.7 98.2 93.6 94.3 100 91.6 91.9 91.1 91.0 89.1 89.0 79.2 79.8 80 80 60 60 40 40 20 20 0 0 AAA - AA 2019-2023 -
Slide 25: Advisory & Consulting Services
ADVISORY & CONSULTING SERVICES CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Excellence in Quality, Comprehensive, Timely Delivery Advisory & Consulting Sustainability Practice Research Grading Practice Services Services • Bespoke Consulting • Customized Sectoral Research • AIF Grading
Slide 26: ESG Advisory Services
ESG ADVISORY SERVICES ~------ • ESG Assessment & GAP Analysis ESG Integration • Policy Mapping & Development • Materiality Assessment & Stakeholder • ESG Strategy & Roadmap I --- ~ Engagement • BRSR Reporting & Assurance Readiness .- - - --, ESG Reporting I • Environmental & Social Due Diligence for
Slide 27: Analytics Consulting
ANALYTICS CONSULTING CareEdge Ratings • Analytics • Consulting • Sustainabilily 01 02 01 ,--------------------------------------, 1--------------------------------------, I I ▪ I ▪ Customer Journey enhancements 02 I I I Valuation Services I I ▪ Scorecard & Model ▪ Platform evaluation support 03 ns c
Slide 28: Summary of Outreach Activities
Summary of Outreach Activities For Q4 For FY24 FY24 Reports Published 81 329 Webinars 10 26 Knowledge Sharing & Speaker Forums 33 110 Media coverages 947 2310 Opinion pieces published in Media 07 26 TV interviews 06 17 Individual Interactions & Quotes in Media 306 837 23
Slide 29: Outreach Activities: Q4FY24 Webinars
OUTREACH ACTIVITIES: Q4FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Guest Speakers Webinars: 10 Moderated by 1 CV Financing – Used CVs Marching Ahead Mr. Umesh Revankar Executive Vice Chairman, Shriram Finance Limited Mr. Anil Bhavnani Senior Executive Vice President, HDFC Bank L
Slide 30: Outreach Activities: Q4FY24 Webinars
OUTREACH ACTIVITIES: Q4FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily Guest Speakers Webinars: 10 Moderated by 6 At Cusp of Inflection, Power Financing Set for 15% Growth in FY25 Ms. Monika Kalia Deputy Managing Director, Chief Financial Officer, National Bank for Financing Infrast
Slide 31: Outreach Activities: Knowledge Partner
OUTREACH ACTIVITIES: Q4FY24 CareEdrge R•Uoo< , A"'ly< .ics • Con sulting • Sustainabilily CareEdge as Knowledge Partner In partnership with the Mauritius Institute of Directors, CareEdge Ratings Africa hosted its second ESG Summit on January 30. The summit 1. The Indian Federation of Green Energy (I
Slide 32: Knowledge Sharing Forums & Speaker Invitations
OUTREACH ACTIVITIES: Q4FY24 ~~"~eEdge ics • Con sulting • Sustainabilily Knowledge Sharing Forums & Speaker Invitations 6. Revati Kasture, Executive Director, was invited for a panel discussion by Inspire 360 Leadership Summit on ‘Gearing of India’s Financial Sector towards 30 trillion USD Economy b
Slide 33: Outreach Activities: Top Reports
OUTREACH ACTIVITIES: Q4FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily ~Top- Reports: - Press release - CareEdge Ratings estimates India’s data centre capacity to double in three years Asset Quality of Scheduled Commercial Banks to Stay Benign in FY25 -- View View Natural Gas: Impor
Slide 34: CSR Activities – FY24
CSR ACTIVITIES – FY24 CareEdge Ratings • Ana lytics • Consulting • Sustainabilily • Automatic Wheelchairs provided to Paraplegic Rehab Center supporting the best SEVA H YOG FOUNDATION aftercare and rehabilitation of the Armed Forces of India (Army, Navy & Air Force) who are MUMBAI medically boarded
Slide 35: Safe Harbour
SAFE HARBOUR CareEdge Ratings • Ana lytics • Consulting • Sustainabilily 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, recommendati
Slide 36: Contact Us
CONTACT US CareEdge Ratings • Ana lytics • Consulting • Sust ainabi l il y Company : Investor Relations Advisors : CareEdge Ratings • Analytics • Consulting • Sustainability SGA Strategic GroVvth Advisors CARE Ratings Limited Strategic Growth Advisors Private Limited CIN: L67190MH1993PLC071691 CIN:
Slide 37: Thank You!
Thank You! About Us CareEdge is a knowledge-based analytical group offering services in Credit Ratings, Analytics, Consulting and Sustainability. Established in 1993, the parent company CARE Ratings Ltd. (CareEdge Ratings) is India’s second-largest rating agency, with a credible track record of rati