Earnings |Care Ratings Ltd (NSE:CARERATING): Q3FY23 Results Out; Total Income rise 17% YoY

Care Ratings Ltd (NSE:CARERATING) is a credit rating agency based in Mumbai, India. It provides credit ratings and research services across a wide range of financial instruments and sectors, including corporate debt, banks, NBFCs, infrastructure projects, and microfinance institutions. The company was established in 1993 and is one of the leading credit rating agencies in India.

Care Rating Ltd. has reported financial performance for the quarter ended December 31, 2022, In the standalone Q3FY23, the company’s income from operations increased by 12% to Rs 54.55 crore compared to the same quarter last year, while total income increased by 18% to Rs 65.58 crore. The company’s operating profit margin and net profit margin were 41% and 33%, respectively. The bank loan ratings segment led this growth, with sustained momentum in the initial ratings business. The total expenses increased by 8% to Rs 38.30 crore, resulting in an increase in the operating profit by 49% to Rs 22.25 crore, and an increase in net profit by 44% to Rs 21.40 crore compared to the corresponding quarter of the previous year.

In the 9MFY23, the company’s income from operations increased by 13% to Rs 180.79 crore compared to the same period last year, and the total income increased by 15% to Rs 207.77 crore. The company’s operating profit margin and net profit margin were 48% and 38%, respectively. The total expenses decreased by 3% to Rs 104.78 crore, resulting in an increase in the operating profit by 50% to Rs 85.96 crore, and an increase in net profit by 40% to Rs 77.95 crore compared to the corresponding 9 months of the previous year.

In the consolidated Q3FY23, the company’s total income increased by 17% to Rs 73.73 crore, and the operating profit increased by 19% to Rs 17.87 crore compared to the same quarter last year. The net profit increased by 9% to Rs 16.31 crore compared to the corresponding quarter of the previous year. In the consolidated 9MFY23, the company’s total income increased by 14% to Rs 229.05 crore, and the operating profit increased by 33% to Rs 76.00 crore compared to the same period last year. The net profit increased by 22% to Rs 65.31 crore compared to the corresponding 9 months of the previous year.

Mehul Pandya, MD & CEO, CARE Ratings Ltd. said “While the Indian economy has been recording healthy growth, there are concerns for the external sector. With the global economy slowing down, India’s economy will definitely feel the pain. At this crucial juncture, the critical aspect would be for the domestic demand revival to be sustained. With capacity utilisation levels improving, the private sector’s intent to invest has improved. Hence, our initial ratings business continued to witness good growth from the bank loan rating as well as the capital market segments. We could expect a gradual rise in private investment in the coming quarters, even while the global and domestic economic uncertainties will prevent a dramatic turnaround.”