Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q4 FY2021 Earnings Presentation
14 slides from Care Ratings's earnings presentation, Jun 14, 2021
Slide 1: Cover letter to NSE and BSE
Date: June 12, 2021 SE/2021-22/13 To, The National Stock Exchange India Ltd. The General Manager Listing Department Corporate Relation Department Exchange Plaza BSE Limited Bandra Kurla Complex Phiroza Jeejeebhoy Towers Bandra (East) 14th Floor, Dalal Street Mumbai 400 051 Mumbai 400 001 Scrip Code:
Slide 2: Press Release: Audited Financial Results for Q4 and FY2020-21
Registered Office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai - 400 022. CIN: L67190MH1993PLC071691 12th June 2021 Press Release Audited financial Results for Fourth quarter of 2020-21 and fiscal 2020-21 The Board of Directors of CARE Ratings
Slide 3: Press Release continued: macro measures, CEO comments, dividend
At the macro level the RBI did introduce measures to enhance liquidity in the system through TLTROs to provide a boost to specific sectors like NBFCs and SMEs. There was also a onetime restructuring scheme (OTR) which was introduced that provided some scope for ratings. The subsidiary companies have
Slide 4: Investor Presentation – Q4 FY21
Investor Presentation – Q4 FY21 June 12, 2021 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 1
Slide 5: Table of Contents
TABLE OF CONTENTS 1. Financials and Business Performance……. 3-4 2. MCR.…...…………………………………..… 5 3. Macro Overview…………………………….. 6-10 All Rights Reserved © 2021 | CARE Ratings ltd. Page: 2
Slide 6: Financial Performance – Q4 FY21
Financial Performance – Q4 FY21 (Rs. Crore) Standalone Consolidated Particulars % Change % Change Q4 FY20 Q4 FY21 Q4 FY20 Q4 FY21 Total Income 64.89 74.82 15% 73.41 85.25 16% Total Expenses 46.71 45.25 -3% 53.04 50.81 -4% Profit Before Tax (PBT) 18.18 29.56 63% 20.36 34.44 69% Provision for Tax 4.23
Slide 7: Financial Performance – FY21
Financial Performance – FY21 (Rs. Crore) Standalone Consolidated % Change % Change Particulars FY20 FY21 FY20 FY21 Total Income 250.44 251.78 1% 275.11 279.74 2% Total Expenses 150.19 139.05 -7% 171.02 161.09 -6% Profit Before Tax (PBT) 100.25 112.73 12% 104.09 118.65 14% Provision for Tax 19.75 26.
Slide 8: MCR
MCR 1.4 1.17 1.2 1.13 1.09 1.06 1.05 1 1.03 0.99 - The MCR is defined as the ratio of (upgrades and 0.96 1 reaffirmations) to (downgrades and reaffirmations) 0.81 0.8 - The credit quality of CARE Ratings’ rated entities has remained moderate in FY21 primarily owing to the 0.6 pandemic led disruption
Slide 9: Macro Progress
Macro Progress 2nd consecutive year of decline in industrial output Better than expected GDP growth in Q4-FY21 30 10.0 20 5.4 4.6 5.0 3.3 3.0 10 22.4 0.5 1.6 0 0.0 -10 1.0 4.5 -1.6 2.2 -0.9 -3.4 YoY% -20 -10.6 -7.1 -5.0 -16.6 -30 YoY% -10.0 -7.4 -40 -50 -33.4 -15.0 -60 -20.0 -70 -57.3 July December
Slide 10: Bond Market Development
Bond Market Development Lower issuances in Q4 but… Industry-wise issuances % share – FY21 2,35,000 Banking/Term Lending 37.0 2,30,000 2,28,044 2,25,000 Financial Services/Investments 16.4 2,20,000 2,15,000 Housing Finance 14.1 Rs crs 2,10,000 2,05,000 Roads & Highways 6.9 2,00,000 1,97,526 Power Gen
Slide 11: Bank progress limited with NPA concerns
Bank progress limited with NPA concerns Credit to the industrial sector picked up in Q4 Overall credit moderated in FY21 on account of 10.0 9.5 8.0 subdued growth to industry and services7.4 Growth in O/S Credit over 9.0 7.0 6.1 8.0 5.6 6.0 December (%) 7.0 5.7 5.0 6.0 YoY% 5.0 4.0 4.0 4.0 4.0 3.4 3
Slide 12: Liquidity infusion stabilises interest rates
Liquidity infusion stabilises interest rates Amount O/S 10 year GSec yields stabilised by RBI’s liquidity push Amount Amount 6.40 As on March announced Accepted 30, 2021 6.20 6.21 6.19 LTRO 2,00,000 1,25,117 1,530 6.09 6.05 6.00 6 6 TLTRO 1.0 1,00,000 1,00,050 67,602 5.96 5.92 5.88 5.87 5.89 TLTRO 2
Slide 13: CARE Ratings' Prognosis for FY22
CARE Ratings’ Prognosis for FY22 • Second wave of COVID-19 pandemic has severely impacted the recovery process • CARE Ratings has revised its GDP projection for FY22 to 8.8-8.9% for FY22 as against the initial estimate of 11-11.2% • Sectors most affected: Hospitality, Aviation, Retail Trade, Real Es
Slide 14: Thank You
Thank You Page: 11