Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q3 FY2019 Earnings Presentation
20 slides from Care Ratings's earnings presentation, Feb 12, 2019
Slide 1: CARE Ratings Limited Investor Presentation – Q3 & 9M FY19
CARE Ratings Limited Investor Presentation – Q3 & 9M FY19
Slide 2: CARE Ratings – Professional Risk Opinion
daz Ratings Professional Risk Opinion TING gy * Ay ; , 0 q + o x G + of x raiytic?
Slide 3: Safe Harbor Statement
SAFE HARBOR STATEMENT THIS PRESENTATION AND THE ACCOMPANYING SLIDES (THE “PRESENTATION”), WHICH HAVE BEEN PREPARED BY CREDIT ANALYSIS & RESEARCH LIMITED (THE “COMPANY”), HAVE BEEN PREPARED SOLELY FOR INFORMATION PURPOSES AND DO NOT CONSTITUTE ANY OFFER, RECOMMENDATION OR INVITATION TO PURCHASE OR SU
Slide 4: CARE Ratings Group
CARE Ratings Group CARE Ratings Limited CARE Risk CARE Advisory CARE Ratings CARE Ratings Solutions Research and (Africa) (Nepal) Private Training Private Limited, 51% Limited,100% Limited, 100% Limited, 78% Investors Presentation 9M FY19 4
Slide 5: Major Factors affecting results of 9M FY19
Major Factors affecting results of 9M FY19 • Revenue estimate change impact of Rs. 18.11 crore resulting in higher operating income and Rs. 13.14 crore resulting in higher profit after tax has been adjusted in 9MFY18 (PY) column in the next two slide to make the performance comparable with current y
Slide 6: Highlights: 9M-FY19 (adjusted)
Highlights: 9M‐FY19 (adjusted) • Growth in Financial Indicators (Consolidated) – Growth in Operating Income of 6.44% in 9M‐FY19 over 9M‐FY18 * – Growth in Total Income of 7.30% over 9M‐FY18 * – Operating Profit margin at 53.64% and PAT margin at 40.50% in 9M‐FY19 * • Growth in Financial Indicators(S
Slide 7: Adjusted Financials for analytical comparison
Adjusted Financials for analytical comparison Rs. Lakhs Standalone Consolidated % Change % Change Particulars 9M FY19 9M FY18 9M FY19 9M FY18 Revenue from Operations* 21,587 20,906 3.3% 22,955 21,566 6.4% Total Expenses 8,381 7,269 15.3% 9,657 8,031 20.3% Operating Profit * 13,206 13,637 ‐3.2% 13,29
Slide 8: 9M-FY19 Performance
9M‐FY19 Performance (As per audited result published in 9M FY19) Rs. Lakhs Standalone Consolidated % Change % Change Particulars 9M FY19 9M FY18 9M FY19 9M FY18 Revenue from Operations 21,587 22,717 ‐4.97% 22,955 23,376 ‐1.80% Total Expenses 8,381 7,269 15.29% 9,657 8,031 20.25% Operating Profit (wi
Slide 9: Business Performance: 9M-FY19
Business Performance: 9M‐FY19 14 8,000 Volume of Debt Rated (Rs lk cr) No of Instruments Rated 7,000 6,696 12 11.46 6,377 10.40 6,000 5,545 10 4,852 5,000 8 4,000 6 4.88 3,000 4.09 4.10 3.85 4 2,000 1,470 2.47 2.48 2 1,000 527 115 259221 84 ‐ 0 Short & Long term Bank Loan Others Total Short & Long t
Slide 10: Rating Movement
Rating Movement The credit quality of the entities rated by CARE Ratings; as measured by CARE Ratings ‘modified credit ratio’ (MCR), for the first 9 months of the current fiscal year continues to be fairly stable. This indicates that a higher proportion of entities have seen their ratings being reaf
Slide 11: CARE Ratings Debt Quality Index (CDQI)
CARE Ratings Debt Quality Index (CDQI) CDQI showed an improving trend in the nine months ended August 2018. However, it fell marginally in the months of September and October’18 and remained more or less stable in the month of November’18. Thereafter, it improved in the month of December. 102 CDQI I
Slide 12: Economic Backdrop
Economic Backdrop GDP growth (%) 6.0 IIP growth % 9.0 5.0 8.2 5.0 8.0 7.7 7.0 7.1 7.0 4.0 6.3 6.0 5.6 3.2 5.0 3.0 4.0 2.0 3.0 2.0 1.0 1.0 0.0 0.0 Q1FY18 Q2FY18 Q3FY18 Q4FY18 Q1FY19 Q2FY19 FY18 (Apr‐Nov) FY19 (Apr‐Nov) CSO has estimated 7.2% growth for FY19 We are expecting 7.4% for the fiscal year I
Slide 13: Economic Backdrop
Economic Backdrop 7.0 Inflation Rs/$ May‐18 Nov‐18 Aug‐18 Dec‐18 Sep‐18 Apr‐18 Oct‐18 Jun‐18 5.5 Jul‐18 6.0 4.4 5.8 60.00 5.0 5.1 3.7 5.2 4.9 5.0 62.00 4.0 4.5 4.6 4.2 4.5 3.8 3.8 64.00 3.0 3.4 2.3 3.1 66.00 2.2 2.0 68.00 1.0 70.00 0.0 72.00 74.00 CPI (%) WPI (%) 76.00 Investors Presentation 9M FY19
Slide 14: Economic Backdrop
Economic Backdrop 9 Incremental Bank credit Growth (%) 8 7.7 7 6 5 4 2.9 3 2 1 0 9M‐FY18 9M‐FY19 Investors Presentation 9M FY19
Slide 15: Economic Backdrop
Economic Backdrop 12.0 CP Issuances (Rs lakh cr) Growth in Credit 10.8 25.0 10.0 10.0 8.9 19.7 8.0 20.0 16.8 6.0 5.0 15.0 4.0 1.9 2.0 10.0 0.6 0.5 0.0 5.0 5.0 4.1 ‐2.0 ‐1.7 ‐4.0 Agriculture Industry Services Retail 0.0 9M‐FY18 9M‐FY19 9M‐FY18 9M‐FY19 Oustanding CPs Issuances CP issuances for Q3 FY19
Slide 16: Economic Backdrop
Economic Backdrop 500,000 Corporate Debt Raised (Rs cr) 464,185 460,061 400,000 401,940 373,375 300,000 200,000 100,000 28,565 4,125 ‐ Public Issue Private Placement Total 9M‐FY18 9M‐FY19 Investors Presentation 9M FY19 16
Slide 17: Economic Backdrop
Economic Backdrop Repo Rate (%) & MCLR(%) 8.50 G Sec Yield (%) 11.50 8.00 9.50 7.50 7.00 7.50 6.50 6.00 5.50 Aug‐18 Nov‐18 Dec‐18 Jun‐18 Apr‐18 May‐18 Oct‐18 Jul‐18 Sep‐18 Aug‐17 Dec‐17 Aug‐18 Dec‐18 Jun‐17 Jun‐18 Oct‐17 Oct‐18 Apr‐17 Apr‐18 Feb‐18 G Sec Yield (%) Repo Rate (%) MCLR (%) Investors Pr
Slide 18: Economy Overview
Economy Overview Positives Negatives • Industrial output up • high interest rates • Core sector growth up • FPI flows were negative in • Easing inflation Sept’18, Oct’18. Turned • Expected improvement in positive in Nov’18, Dec’18. GDP growth Jan’19 witnessed outflows • Increasing bank credit off •
Slide 19: Economic Outlook for FY19
Economic Outlook for FY19 • GDP growth is expected to be around ~7.4% in FY19 • Inflation expected to be around 3‐3.2% by March end • Rupee to be in the range of Rs.70‐71/$ • Reduction in repo rate by 25‐50 bps in FY20. Investors Presentation 9M FY19 19
Slide 20: Thank You
Thank You Investors Presentation 9M FY19 20