Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q3 FY22 Earnings Presentation
20 slides from Care Ratings's earnings presentation, Jan 29, 2022
Slide 1: Exchange filing cover letter
Care-'c/ge RATINGS Date: January 28, 2022 SE/2021-22/69 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 th 14 Floor, Dalal Street Bandra (East) Mumbai 400 001 Mum
Slide 2: Press Release: Financial Results for Q3 FY22
Press Release Financial Results for Q3 FY22 Care January 28, 2022 The Board of Directors of CARE Ratings Ltd. approved the financial results for Q3 FY22 in the Board meeting held on January 28, 2022. Consolidated results CARE Ratings Ltd. consolidated total income decreased by 1.2% from Rs.63.72 cro
Slide 3: Investor Presentation Q3-FY22
CareEdge Rati ngs • Advisory • Researc h • Risk Solu tions Investor Presentation Q3‐FY22 January 28, 2022 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 1
Slide 4: Table of Contents
CareEdge Rati ngs • Advisory • Researc h • Risk Solu tions TABLE OF CONTENTS 1. CareEdge and Vision 3‐5 2. Results 6‐7 3. MCR 8 4. Outreach 9‐11 5. Macro environment 12‐16 6. Outlook 17 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 2
Slide 5: CareEdge Group
CareEdge Group CareEdge Ratings • A d visory • Research • Risk Sol utions CARE Ratings Ltd. CARE Risk Solutions Private CARE Advisory & Research CARE Ratings (Africa) Private CARE Ratings Nepal Limited (100%) Limited (51%) (100%) (78%) Q3 FY22 Private & Confidential – CareEdge Group Page: 3
Slide 6: A new and energized brand
A new and energized brand – ‘Foresight Backed by Expert Insights’ • Engaged a professional global agency to reinvent the brand and its architecture from first principles. • Dynamic with strong values and vision to become a financial powerhouse. • A team led by industry experts and thought leaders to
Slide 7: Vision, Mission, Values and Strategy
CareEdge Group Vision & Strategy CareEdge Ratings • A d visory • Research • Risk Sol utions <®> Vision Mission Values A global research & analytics To provide best‐in‐class tools, company that enables risk analysis and insights, enabling Integrity, Pursuit of Excellence, mitigation and superior deci
Slide 8: Financial Performance – Q3 FY22
Financial Performance – Q3 FY22 CareEdge Ratings • A d visory • Research • Risk Sol utions Rs. in Crore Standalone % Consolidated % Particulars Q3 FY21 Q3 FY22 Change Q3 FY21 Q3 FY22 Change Total Revenue 54.83 55.45 1% 63.72 62.96 (1%) Total Expenses 33.78 35.60 5% 39.55 43.19 9% Profit Before Tax (
Slide 9: Financial Performance – 9M FY22
Financial Performance – 9M FY22 CareEdge Ratings • A d visory • Research • Risk Sol utions Rs. in Crore Standalone % Consolidated % Particulars 9M FY21 9M FY22 Change 9M FY21 9M FY22 Change Total Revenue 176.96 180.70 2% 194.49 201.77 4% Total Expenses 93.79 107.90 15% 110.28 130.53 18% Profit Befor
Slide 10: Sustained Recovery in Credit Ratio since second half of FY21
Sustained Recovery in Credit Ratio since second half of FY21 CareEdge Ratings • A d visory • Research • Risk Sol utions Half yearly Credit Ratio Trajectory 2.5 2.29 2.05 2 1.73 1.48 1.5 1.27 1.27 1.18 1.22 1 0.81 0.64 0.49 0.5 0 H1FY17 H2FY17 H1FY18 H2FY18 H1FY19 H2FY19 H1FY20 H2FY20 H1FY21 H2FY21 H
Slide 11: Out-Reach Activities
Out‐Reach Activities CareEdge RBI Issues Revi sed PCA Framework -=:car ... • I DEBT Market _.,,.....,..,00 , Update CareEdge Ratings • A d visory • Research • Risk Sol utions . ...-.. =>0--.C ...._,, ....,~~----•-· ...-· . ...,..... .... ,..... ~-.....-.. '"''-""_...,..,_.,.. ,...... . - ,......, ..
Slide 12: Out-Reach Activities: Knowledge Sharing Forums
Out‐Reach Activities CareEdge Ratings • Advisory • Research • Risk Sol utions Knowledge Sharing Forum (KSFs): CareEdge Senior Management, Economics, Sector Specialists, Industry Research teams along with Mr. Vineet Jain Business Development participated in multiple knowledge‐sharing forums ...,...-4
Slide 13: Webinars
Webinars In continuation of our Knowledge Dissemination series, CareEdge Ratings conducted 8 webinars in Q3. Representations were made by Industry Experts invited as Guest Speakers CareEdge Ratings • A d visory • Research • Risk Solutions along with CareEdge Senior Management and Sector Specialists.
Slide 14: Subdued corporate bond issuances in Q3 FY22
Subdued corporate bond issuances in Q3 FY22 CareEdge Ratings • A d visory • Research • Risk Sol utions 15% lower issuances in Q3 FY22 26% decline in bond issuances during the first nine 1.75 months of FY22 1.71 1.70 6.00 5.67 1.65 5.00 1.60 4.17 Rs lakh crore Rs lakh crore 1.55 4.00 1.50 3.00 1.45 1
Slide 15: Healthy growth in commercial paper issuances in FY22
Healthy growth in commercial Paper (CP) issuances in FY22 CareEdge Ratings • A d visory • Research • Risk Sol utions 49% growth in CP issuances during Q3 FY22 36% growth in CP issuances during first nine months of 7.00 FY22 6.48 6.00 18.00 16.59 16.00 5.00 4.34 14.00 12.21 Rs lakh crore Rs lakh cror
Slide 16: Bank credit offtake quickens in FY22
Bank credit offtake quickens in FY22 driven by retail and agriculture sector CareEdge Ratings • A d visory • Research • Risk Sol utions Incremental Bank Credit Growth (Total) Incremental Bank Credit growth: Sector‐wise Mar'20 ‐ Dec'20 Mar'21 ‐ Dec'21 Industry Services 8.0 0.0 7.0 6.7 ‐0.5 ‐1.0 ‐0.8
Slide 17: High-frequency indicators show stability despite omicron worries
High‐frequency indicators show stability despite omicron worries CareEdge Ratings • A d visory • Research • Risk Sol utions Fairly stable PMI trends across manufacturing and services in Q3 FY22 PMI Trend (Manufacturing) Waning base leads to declining IIP growth trend 70.0 150.0 133.5 55.5 55.3 55.9
Slide 18: Soaring inflation and G-Sec yields pose threats to growth
Soaring inflation and G‐Sec yields along with volatile domestic currency pose major threats to the growth momentum CareEdge Ratings • A d visory • Research • Risk Sol utions 10 Year G‐Sec Yield rose to multi‐month high amid liquidity tightening concerns 6.70 6.58 Inflationary pressure pick up in Q3
Slide 19: Outlook
Outlook ~~~~Edge ry Research • Risk Sol utions • GDP forecast for FY22 retained at 9.1% with a downward bias of 10 bps • • • After muted fiscal, improved investment outlook for FY23 New investment announcements lacklustre in H2 FY22 amid new virus concerns Government is expected to focus on CAPEX in
Slide 20: Thank You
CareEdge Rati ngs • Advisory • Researc h • Risk Solu tions Thank You Page: 18