CARE Ratings Ltd · NSE:CARERATING
CARE Ratings — Q1 FY2024 Earnings Presentation
25 slides from CARE Ratings's earnings presentation, August 2023
Slide 1: CARE Ratings Limited Investor Presentation Q1FY24
CARE Ratings Limited Investor Presentation Q1FY24
Slide 2: Celebrating 30 years of Analytical Excellence
; _ Celebrating " * of Analytica] Excellence —_—-
Slide 3: About Us
ABOUT US Who Are We Incorporated in 1993, CARE Ratings Limited is one of the leading credit rating agencies in India Professionally managed company Leadership position in important sectors What we offer Ratings One of India’s leading credit rating companies with a track record of servicing diverse s
Slide 4: Vision, Mission & Values
VISION MISSION & VALUES Strategy Vision A global research and analytics company that enables risk mitigation and superior decision making Re- branding Talent Mission To provide best-in-class tools, analyses and insights, enabling customers to make informed decisions Technology Values Group Approach
Slide 5: CareEdge Turns 30
CareEdge TURNS 30 1993-1996 1997-2000 2001-2004 Commenced Rating Operations Launched ‘CARE Loan Ratings’ for rating term loans Founding member of Association of Credit Rating Expansion of ratings operations to rating of toll Ventured into Advisory business and bagged 13 Agency in Asia (ACRAA) roads,
Slide 6: CareEdge Group: Foresight Backed by Expert Insights
CareEdge GROUP: FORESIGHT BACKED BY EXPERT INSIGHTS CareEdge Group CARE Ratings Limited (Parent Company) Subsidiaries 100% 100% 51% 78% CARE Risk Solutions CARE Advisory Research CARE Ratings CARE Ratings (Africa) Private Limited & Training Limited Nepal Limited Private Limited (CRSPL) (CART) (CRNL)
Slide 7: Ratings Business
RATINGS BUSINESS CareEdge Ratings CareEdge Rating – Africa One Of India’s Leading Credit Rating Agencies with a track record of servicing diverse sectors for over (Subsidiary of CARE Ratings Ltd. with 78% stake) three decades Offers a range of high-quality analytical services to the stakeholders Car
Slide 8: CART: Advisory Research and Training
CART: ADVISORY RESEARCH AND TRAINING CARE Advisory Research and Training Ltd (CART) offers services in the area of Corporate Advisory, Risk Advisory & Monitoring, Financial due diligence and Valuations, Industry Research and Customized Research, Gradings, ESG Assessment and ESG Advisory Corporate Ad
Slide 9: ESG Solutions by CareEdge
ESG SOLUTIONS BY CareEdge ESG Offerings Clientele ESG Data & Analysis and performance tracking for pre-determined KPIs along E, S & G Funds, FIs and Corporates Benchmarking parameters, along with a comparison against industry leaders and industry peers seeking ESG data ESG GAP Identify gaps in compl
Slide 10: CRSPL: Risk & Analytics
CRSPL: RISK & ANALYTICS Analytical Driven Risk Solutions 15+ years global experience in providing cutting edge Risk & Compliance solutions to Banks and Financial Institutions Sustained presence in more than 10 countries 80+ implementations across the globe 200+ experienced professionals assists acro
Slide 11: Macro-Economic Indicators
Macro-Economic Indicators 11
Slide 12: Lead Indicators: Fundraising Picks Pace
LEAD INDICATORS: FUNDRAISING PICKS PACE Corporate Bond Issuances CP Issuances Bond Issuances More than Double in Q1 FY24 CP Issuances Up 9% in Q1 FY24 (Rs. Lakh Crore) (Rs. Lakh Crore) 3.0 3.8 3.5 1.2 Q1FY23 Q1FY24 Q1FY23 Q1FY24 Source: Prime database (Includes private placement and public issues) S
Slide 13: Lead Indicators: Bank Credit Offtake Remains Healthy
LEAD INDICATORS: BANK CREDIT OFFTAKE REMAINS HEALTHY Bank Credit Growth Improves Credit to Services Picks Pace; Industrial Credit Growth Relatively Weak (Y-o-Y ) (Y-o-Y ) 16.2% 26.7% 14.5% 20.9% 19.7% 18.1% 12.9% 12.8% 9.5% 8.1% Agriculture & Allied Industry (25.6) Services (29.1) Personal Loans (31
Slide 14: Lead Indicators: High-Frequency Indicators Show Healthy Recovery
LEAD INDICATORS: HIGH-FREQUENCY INDICATORS SHOW HEALTHY RECOVERY IIP Growth Stays on Track GST Revenue & E-Way Bills Stay Buoyant PMI's in the Expansionary Zone (Y-o-Y %) 20 2.0 1.9 10 64 1.7 9 62 1.7 15 1.6 1.5 1.6 1.6 1.6 1.5 1.4 1.4 1.5 1.4 1.5 1.5 1.5 1.5 8 60 7 58 10 6 56 Rs. Lakh Crore 1.0 5 C
Slide 15: Lead Indicators: CPI Inflation Inches Up, WPI Shows Deflation
LEAD INDICATORS: CPI INFLATION INCHES UP, WPI SHOWS DEFLATION Retail Inflation Remains Above 4% Target WPI Contracts for Third Straight Month (Y-o-Y % ) (Y-o-Y% ) 9 20 8 15 7 6 5.3% 10 5 4.8% 5 4 3 0 2 Aug-22 Dec-22 Jul-22 Nov-22 Jan-23 Jun-22 Mar-23 Jun-23 Sep-22 Oct-22 Apr-23 Feb-23 May-23 -5 Jun-
Slide 16: Lead Indicators: Yields & Currency
LEAD INDICATORS: YIELDS & CURRENCY 10-Year G-Sec Yield Remains Anchored Around 7% Rupee Movement Restricted to 81-83 Range (%) (USD-INR) 85.0 7.9 7.7 83.0 7.5 81.0 7.3 79.0 7.1 77.0 6.9 6.7 75.0 6.5 73.0 Jan-23 Oct-22 Jun-22 Jun-23 Apr-22 Jul-22 Aug-22 Nov-22 Dec-22 Mar-23 Apr-23 Jul-23 Aug-23 May-2
Slide 17: Financials
Financials 17
Slide 18: Standalone: Q1FY24 Key Highlights
STANDALONE: Q1FY24 KEY HIGHLIGHTS EBITDA PAT Operating Income Rs. 56.48 Cr Rs. 20.16 Cr Rs. 21.62 Cr (16% YoY) (6% YoY) (20% YoY) PBT Margin PAT Margin EBITDA Margin 36% 43% 32% 18
Slide 19: Standalone Financial Performance
STANDALONE FINANCIAL PERFORMANCE (Rs. Crs) Total Income EBITDA PAT 67.7 19.0 20.2 21.6 18.1 49.4 56.1 7.1 9.9 10.9 4.9 42.5 Q1FY21 Q1FY22 Q1FY23 Q1FY24 Q1FY21 Q1FY22 Q1FY23* Q1FY24 Q1FY21 Q1FY22 Q1FY23 Q1FY24 *Adjusted for one time expense reversal, the adjusted EBITDA was Rs. 14.72 Crore for Q1FY23
Slide 20: Standalone Profit & Loss Statement
STANDALONE PROFIT & LOSS STATEMENT Standalone Consolidated Profit and Loss (Rs. Crs) Q1FY24 Q1FY23 YoY Q1FY24 Q1FY23 YoY Total Income 67.7 56.1 21% 77.9 62.1 26% Total Expenses 38.5 31.7 21% 51.5 40.9 26% Profit Before Tax 29.2 24.4 20% 26.4 21.2 25% Profit Before Tax (%) 43% 44% 34% 34% Provision f
Slide 21: Outreach Activities
Outreach Activities Care Sige"
Slide 22: Outreach Activities: Q1FY24
OUTREACH ACTIVITIES: Q1FY24 CareEdge Conversations: • As part of its 30 years celebrations, CareEdge successfully hosted ‘CareEdge Conversations’ in New Delhi on May 23. The evening was graced by our Chief Guest Shri Nitin Gadkari, Honourable Minister for Road Transport and Highways, Govt of India,
Slide 23: Outreach Activities: Q1FY24
OUTREACH ACTIVITIES: Q1FY24 Knowledge Sharing Forums and Speaker Invites: • Mehul Pandya, MD & CEO, discusses the state of the MSME sector and the challenges it faces in an opinion piece in the Financial Express. • Revati Kasture, Executive Director, imparted training to Sebi officers as part of the
Slide 24: Safe Harbour
SAFE HARBOUR This presentation and the accompanying slides (the “Presentation”), which have been prepared by CARE Ratings Ltd. (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any securities
Slide 25: Contact Us
CONTACT US Company : Investor Relations Advisors : CARE Ratings Limited Strategic Growth Advisors Private Limited CIN: L67190MH1993PLC071691 CIN: U74140MH2010PTC204285 Krunali Shah / Ami Parekh [email protected] [email protected] / [email protected] +91 98209 87564 / +91 80824 6