Care Ratings Ltd · NSE:CARERATING

Care Ratings — Q1 FY22 Earnings Presentation

13 slides from Care Ratings's earnings presentation, Aug 4, 2021

  1. Slide 1: Exchange intimation letter: press release and investor presentation

    Date: August 03, 2021 SE/2021-22/27 To, The General Manager The National Stock Exchange India Ltd. Corporate Relation Department Listing Department BSE Limited Exchange Plaza Phiroza Jeejeebhoy Towers Bandra Kurla Complex 14th Floor, Dalal Street Bandra (East) Mumbai 400 001 Mumbai 400 051 Scrip Cod

  2. Slide 2: Press Release Financial Results for Q1 FY22

    3rd August 2021 Press Release Financial Results for Q1 FY22 The Board of Directors of CARE Ratings approved the financial results for Q1 FY22 in the Board meeting held on Tuesday the 3rd of August 2021. Consolidated results CARE Ratings consolidated total income increased by 20.54% from Rs. 46.89 cr

  3. Slide 3: Investor Presentation – Q1 FY22

    Investor Presentation – Q1 FY22 August 03, 2021 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 1

  4. Slide 4: Table of Contents

    TABLE OF CONTENTS 1. Financials and Business Performance……. 3 2. MCR.…...…………………………………..… 4 3. Macro Progress…………………………….. 5-10 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 2

  5. Slide 5: Financial Performance – Q1 FY22

    Financial Performance – Q1 FY22 (Rs. Crore) Standalone Consolidated Particulars % Change % Change Q1 FY21 Q1 FY22 Q1 FY21 Q1 FY22 Total Income 42.49 49.42 16% 46.89 56.52 21% Total Expenses 30.09 36.43 21% 34.55 42.55 23% Profit Before Tax (PBT) 12.40 12.99 5% 12.34 13.98 13% Provision for Tax 2.47

  6. Slide 6: MCR does show gradual improvement over quarters

    MCR does show gradual improvement over quarters Movement in MCR on a 4-quarter rolling basis Movement in MCR on a quarterly basis 1.1 1.4 1.17 1.04 1.2 1.1 1.07 1.09 1.05 1.03 1.05 1.04 1.02 0.98 0.94 1.01 1 0.83 1 0.8 0.96 0.95 0.6 0.4 0.9 0.88 0.2 0.85 0 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 Q1 0.8 FY12 F

  7. Slide 7: Macro progress has been slow

    Macro progress has been slow PMI Trend points downwards IIP Trend (Cumulative) is deceptive due to base effect 80.0 68.8 60 55.5 54 60.0 50.8 50 48.1 46.4 41.2 40.0 40 % growth (yoy) 20.0 30 FY21 (Apr - May) 20 0.0 FY22 (Apr - May) 10 -20.0 0 PMI - Manufacturing PMI - Services -40.0 -45.0 -60.0 Apr-

  8. Slide 8: Inflation has been rising, while GSec yields have been managed through monetary measures

    Inflation has been rising , while GSec yields have been managed through monetary measures 10 year G-Sec yields (%) have started moving up gradually on Inflationary pressure pick up in Q1 inflation concerns 6.2 14.0 12.9 12.1 6.15 6.13 12.0 10.7 10.0 6.1 7.9 6.05 8.0 6.05 YoY% 6.3 6.3 5.5 6.0 5.0 6 4

  9. Slide 9: Bond Market witnesses sharp decline in issuances: No TLTROs like last year

    Bond Market witnesses sharp decline in issuances: No TLTROs like last year 60% decline in issuances in Q1 - FY22 2,50,000 Industry-wise issuances % share (Q1 – FY22) 2,21,668 2,00,000 Financial Services/Investments 35.9 Banking/Term Lending 20.3 Housing Finance 17.8 1,50,000 Power Generation & Suppl

  10. Slide 10: Bank Credit degrowth continues this quarter, both industry and services hit

    Bank Credit degrowth continues this quarter, both industry and services hit Incremental Bank Credit growth (Total) Incremental Bank Credit growth: Sector - wise Mar'20 - Jun'20 Mar'21 - Jun'21 Industry Services 0.00 0.0 -0.20 -0.5 -0.40 -1.0 -1.0 -1.1 -0.60 % growth -1.5 % growth -0.80 -1.7 -2.0 -1.

  11. Slide 11: Growth in CPs slows down in Q1, RBI measures see limited offtake

    Growth in CPs slows down in Q1, RBI measures see limited offtake Liquidity Infusion Measures by the RBI in Q1 – FY22 Incremental growth in CP issuances 16.0 13.6 Amount (Rs Crore) 14.0 12.0 TLTRO 320 10.0 Net OMOs (Including Special OMOs) 1,39,125 % growth 8.0 Special LTRO for SFB 890 6.0 4.0 3.2 2.

  12. Slide 12: Looking forward

    Looking forward • Our GDP projection for FY22 is 8.8-9 % • GFCF rate to increase marginally to 27.5% of GDP (from 27.1% in FY21) • CPI inflation to remain elevated at around 6%, • Repo rate will remain at 4%. • 10-years G-Sec yields could inch up to 6.20% in the absence of any change in policy stanc

  13. Slide 13: Thank You

    Thank You Page: 11

CARE Ratings — Q1 FY22 Earnings Presentation on 6ix