Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q4 FY2020 Earnings Presentation
27 slides from Care Ratings's earnings presentation, Jun 18, 2020
Slide 1: Cover letter to stock exchanges
~~Ratings Professional Risk Opinion Date: June 18, 2020 SE/2020-21/015 To, The General Manager The National Stock Exchange India ltd. The Corporate Relation Department Listing Department Bombay Stock Exchange limited Exchange Plaza Phiroza Jeejeebhoy Towers Sandra Kurla Complex 14' " Floor, Dalal St
Slide 2: Q4 and 2019-20 Results
Ruuniir Registered Office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022. CIN: L67190MH1993PLC071691 18th June 2020 Q4 and 2019-20 Results The Board of Directors of CARE Ratings approved the financial results for the fourth quarter and
Slide 3: Management quote
~@Ratings r rnh:c<,.,:;.ional Ri:.k Opir,ion "The shutdown in the first few months of the new year in various forms has impacted overall economic activity and with a negative growth in GDP being projected for FY21 we do see several challenges in growing the business as the overall borrowing through
Slide 4: CARE Ratings Limited Investor Presentation – FY20
CARE Ratings Limited Investor Presentation – FY20 ch3~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 5: 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 6: Contents
Contents Highlights Financial & Business Performance MCR/CDQI Economic Backdrop ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 7: CARE Ratings Group
CARE Ratings Group CARE Ratings Limited CARE Risk CARE Advisory CARE Ratings CARE Ratings Solutions Research and (Africa) (Nepal) Private Training Limited, Private Limited, 51% Limited, 100% 100% Limited, 78% ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 8: Diversified Business Mix
Diversified Business Mix Ratings Information Analysis & Grading Manufacturing & Services sector Industry & Customized Research reports Financial sector CARE Industry Risk Metrics (CIRM) reports Infrastructure Grading services Small & Medium Enterprises Training Structured Finance
Slide 9: Contents
Contents Highlights Financial & Business Performance MCR/CDQI Economic Backdrop ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 10: Financial Performance
Financial Performance ,_ Rs. in Crores ... Standalone Consolidated % Change % Change '6 Particulars •Is.,__ .. FY20 FY19 FY20 FY19 ~ Total Revenue 250.44 327.19 -23% 275.11 349.36 -21% Total Expenses 150.19 129.15 ,. 16% 171.02 147.63 16% Profit Before Tax ,. 100.25 r 198.04 -49% ,. 104.09 201.73 -4
Slide 11: Financial Performance: FY20 (Rs Cr) - Standalone
Financial Performance: FY20 (Rs Cr)- Standalone Total Revenue 400.00 PBT 327.19 300.00 250.44 300.00 198.04 200.00 200.00 100.25 100.00 100.00 FY19 FY20 FY19 F.Y20 Total Expenditure PAT 160.00 150.00 134.99 150.19 150.00 100.00 80.50 140.00 129.15 130.00 50.00 120.00 110.00 FY19 FY20 FY19 FY20 ~~Rat
Slide 12: Financial Performance: FY20 - Standalone
Financial Performance: FY20 - Standalone PBT Margin (%) 80 61 60 40 40 FY20 PBT margin & PAT margin fell due 20 to lower income (due to lower FY19 FY20 borrowing by the NBFC sector & muted PAT Margin (%) Capex of the corporate sector) coupled 50 41 with higher operating expenses due to 40 32 30 incr
Slide 13: Business Performance (New clients): FY20
Business Performance (New clients): FY20 25.00 Volume of Debt Rated (Rs lk er) 10,000 9,380 9,000 No of Instruments Rated 8,088 19.91 20.00 8,000 7,000 6,000 1 5 .00 5,000 4,000 10.00 8.13 3,000 2,000 5.00 1,000 110 74 338 290 3.27 Short & Long term Bank Loan others Total 0.00 Medium term Ratings Sh
Slide 14: Business Performance (New clients): Q4 FY20
Business Performance (New clients): Q4 FY20 9.00 Volume of Debt Rated (Rs lk er) 8.45 3,500 8 .00 No of Instruments Rated 3,002 3,000 7.00 2,500 6.00 2,000 5.00 1,500 4.00 1,000 3.00 2.00 500 26 23 117 83 1.00 Short & Medium Long term Bank Loan Others Total 0 .00 term Ratings Short & Medium Long ter
Slide 15: Contents
Contents Highlights Financial & Business Performance MCR/CDQI Economic Backdrop ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 16: Rating Movement
Rating Movement The weakness in the domestic economy has been emphasized by the sharp moderation in the credit quality of Indian companies in 2019-20. Indian corporates have been pressured by the slowdown in the domestic economy and tight financing conditions in the domestic economy. The credit qual
Slide 17: CARE Ratings Debt Quality Index (CDQI)
CARE Ratings Debt Quality Index (CDQI) CDQI declined by 0.54 points in the month of September’19 triggered by further downgrades in NBFC and HFC segment due to the continuing liquidity stress in the segments making it difficult for entities to raise finance in a timely manner as also delaying moneti
Slide 18: Contents
Contents Highlights Financial & Business Performance MCR/CDQI Economic Backdrop ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 19: Economic Growth and Industrial Output
Economic Growth and Industrial Output GDP growth (%) 5.0 IIP 9.0 8.0 8.2 3.8 4.0 8.0 7.2 7.0 6.1 3.0 6.0 5.0 % 2.0 % 4.2 4.0 3.0 1.0 2.0 0.0 1.0 0.0 -1.0 -0.7 FY16 FY17 FY18 FY19 FY20 FY19 FY20 Source: MOSPI Source: MOSPI ~~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20 16
Slide 20: Inflation and Exchange Rate
Inflation and Exchange Rate 8.0 7.6 Inflation Rs/$ 7.0 May-19 Mar-20 Nov-19 Aug-19 Dec-19 Sep-19 Feb-20 Apr-19 Oct-19 Jun-19 Jan-20 Jul-19 6.0 66 5.9 5.0 67 % 4.0 3.5 68 3.2 3.2 69 69.43 3.0 2.0 70 1.1 71 71.49 1.0 1.0 72 0.0 73 Aug-19 Oct-19 Jun-19 Sep-19 Feb-20 Dec-19 Mar-20 May-19 Jul-19 Jan-20 A
Slide 21: Bank Credit
Bank Credit Growth in Bank credit 20.0 Growth in Credit 14.0 13.3 17.8 18.0 16.4 12.0 16.0 15.0 14.0 10.0 12.0 8.0 % 10.0 7.9 7.4 % 6.1 8.0 6.9 6.0 6.0 4.0 4.0 2.0 4.2 0.7 2.0 0.0 0.0 Agriculture Industry Services Retail FY19 FY20 ■ FY19 ■ FY20 Source: RBI Source: RBI ~~Ratings Professional Risk Opi
Slide 22: Non-Performing Assets
Non-Performing Assets GNPA Ratio 12 11 11.2 10 9 9.3 9.3 9.3 % 8 7 7.5 6 5 4 Mar-16 Mar-17 Mar-18 Mar-19 Sep-19 Note: Gross NPAs as a percentage of gross advances Source: RBI ch3~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20
Slide 23: Corporate Bond Issuances
Corporate Bond Issuances Corporate Debt Raised • Majority of the corporate bond issuances 8,00,000 are raised by the financial sector (~65% 7,00,000 share) • Banks/term lending (35%), financial 6,89,687 6,74,703 6,00,000 6,46,997 services/investment (18%), housing 5,00,000 6,10,318 finance (13%) Rs.
Slide 24: Commercial Paper
Commercial Paper CP Issuances (Rs lakh cr) • Within the total CP issuances, financial services/investment had highest share of 30.0 21% followed by oil 25.96 25.0 exploration/drilling/refineries (16%) and 21.97 term lending (12%) 20.0 Rs. Lkah crore 15.0 • Some of the other sectors pertained to • Ho
Slide 25: Interest Rate and GSec yields
Interest Rate and GSec yields 12.00 Repo Rate (%) & MCLR(%) 7.60 G Sec Yield (%) 7.37 11.00 7.40 10.00 7.20 8.74 9.00 7.00 8.00 % 8.00 % 6.80 7.00 6.60 6.00 6.40 5.00 4.40 6.20 4.00 6.25 4.00 6.00 Aug-19 Oct-19 Jun-19 Feb-20 Dec-19 Apr-20 Apr-19 Apr-19 Sep-19 Jul-19 Feb-20 Mar-20 Aug-19 Jan-20 Nov-1
Slide 26: Government measures in FY20
Government measures in FY20 C Real estate Eased FDI norms in Extension in MSMEs’ Eased BS VI norms NPA recognition AIF of Rs. 25,000 cr coal, contract mfg ... Corporate tax rate ECB norms Thrust to MSMEs Infra boost - NIP cut to 22% liberalized ... ... C ~ ,I Capital infusion in Liquidity support Wi
Slide 27: Thank You
Thank You ch3~Ratings Professional Risk Opinion Investors Presentation Q4 and FY20 24