CARE Ratings Ltd · NSE:CARERATING
CARE Ratings — Q4 FY24 Earnings Presentation
32 slides from CARE Ratings's earnings presentation, May 2024
Slide 1: CARE Ratings Limited Investor Presentation Q4 & FY24
CARE Ratings Limited Investor Presentation Q4 & FY24
Slide 2: Macro-Economic Indicators
Macro-Economic Indicators 2
Slide 3: Fundraising Activity in the Economy
FUNDRAISING ACTIVITY IN THE ECONOMY Corporate Bond Issuances Commercial Paper Issuances Corporate Bond Issuances Up by 19% in FY24, & 10% in Q4FY24 CP Issuances Stable in FY24, & Up by 16% in Q4FY24 (Rs. Lakh Crore) (Rs. Lakh Crore) 10.2 13.7 13.8 8.6 2.7 2.9 3.8 3.3 Q4FY23 Q4FY24 FY23 FY24 Q4FY23 Q
Slide 4: Lead Indicators: IIP, GST, E-Way Bills & PMI
LEAD INDICATORS: IIP, GST, E-Way Bills & PMI IIP Growth Holds Up Well GST Revenue & E-Way Bills Upbeat Manufacturing & Services PMI Stay in the 14 2.5 12 Expansionary Zone 11.9 2.1 65 12 10.9 2.0 1.9 10 1.7 1.7 1.6 1.7 1.7 1.8 60.8 10 1.6 1.6 1.7 1.6 1.6 8 60 Rs. Lakh Crore 58.8 1.5 Y-o-Y % 8 Crore
Slide 5: Bank Credit Offtake
BANK CREDIT OFFTAKE Industrial Credit Growth Industrial Credit Growth Improves, 16 Credit to Services Stays Healthy 14.9 25 14 13.2 13.2 12.0 19.6 20.2 12 20 10 Y-o-Y % 15 8 Y-o-Y % 7.0 10 8.5 6 5.6 5 4 3.1 2 0 Industry Services 0 Micro & Small (19.8) Medium (8.3) Large (72.0) FY23 FY24 FY23 FY24 So
Slide 6: Government Capex Focus Continues
GOVERNMENT CAPEX FOCUS CONTINUES Centre’s Capex (% GDP) Budgeted to Rise Further in Growth in Gross Fixed Capital Formation FY25 20 17.5 4.0 3.4 15 3.5 3.2 11.2 3.0 2.7 10.2 2.5 10 2.5 2.1 6.6 Y-o-Y % 2.0 % 1.6 1.7 5 1.5 1.2 1.0 0 0.5 -5 0.0 FY19 FY20 FY21 FY22 FY23 FY24 (RE) FY25 (BE) -7.1 -10 Cape
Slide 7: Investment Announcements Rise; Capacity Utilization Improves
INVESTMENT ANNOUNCEMENTS RISE; CAPACITY UTILIZATION IMPROVES Private Sector Leads Investment Announcements; Manufacturing Sector Capacity Utilisation Improves Government Drives Project Completions 80 18 16.0 74.7 16 75 14 11.4 Rs Lakh Crore 12 70 10 7.6 8 65 5.3 6 3.1 3.4 4 2.2 1.6 1.8 1.8 60 % 2 0
Slide 8: Financials
Financials Ltt Lil al © &
Slide 9: Standalone: Q4 & FY24 Key Highlights
STANDALONE: Q4 & FY24 KEY HIGHLIGHTS Revenue from Ops EBITDA PAT Q4 FY24 FY24 Q4 FY24 FY24 Q4 FY24 FY24 Rs. 74.80 Cr Rs. 283.07 Cr Rs. 35.00 Cr Rs. 127.54 Cr Rs. 34.83 Cr Rs. 119.44 Cr YoY YoY YoY YoY YoY YoY 10% 14% 18% 10% 35% 15% EBITDA Margin PAT Margin EARNINGS PER SHARE (EPS) Q4 FY24 FY24 Q4 F
Slide 10: Consolidated: Q4 & FY24 Key Highlights
CONSOLIDATED: Q4 & FY24 KEY HIGHLIGHTS Revenue from Ops EBITDA PAT Q4 FY24 FY24 Q4 FY24 FY24 Q4 FY24 FY24 Rs. 90.15 Cr Rs. 331.68 Cr Rs. 29.03 Cr Rs. 112.13 Cr Rs. 24.55 Cr Rs. 102.56 Cr YoY YoY YoY YoY YoY YoY 16% 19% - 7% 22% 20% EBITDA Margin PAT Margin EARNINGS PER SHARE (EPS) Q4 FY24 FY24 Q4 FY
Slide 11: Profit & Loss Statement: FY24
PROFIT & LOSS STATEMENT: FY24 Standalone Consolidated Profit and Loss (Rs. Crs) FY24 FY23 YoY FY24 FY23 YoY Total Operating Income (TOI) 283.07 248.84 14% 331.68 278.99 19% Other Income 46.96 37.11 27% 46.69 37.94 23% Total Income 330.03 285.95 15% 378.37 316.93 19% Total Expenses 168.15 147.80 14%
Slide 12: Profit & Loss Statement: Q4FY24
PROFIT & LOSS STATEMENT: Q4FY24 Standalone Consolidated Profit and Loss (Rs. Crs) Q4FY24 Q4FY23 YoY Q4FY24 Q4FY23 YoY Total Operating Income (TOI) 74.80 68.05 10% 90.15 77.51 16% Other Income 13.67 10.13 35% 10.29 10.37 (1%) Total Income 88.47 78.18 13% 100.44 87.88 14% Total Expenses 42.17 43.01 (2
Slide 13: About Us
About Us
Slide 14: About Us: Serving the financial markets for over three decades
ABOUT US Who Are We Established in 1993, we are India’s second largest credit rating agency. With an established presence in the credit ratings industry, we are now leveraging and diversifying into knowledge-based analytical businesses like Research and Advisory, Sustainability and Analytics. We are
Slide 15: CareEdge Journey
CareEdge Journey 1993-1996 1997-2000 2001-2004 Commenced Rating Operations Launched ‘CARE Loan Ratings’ for rating term loans Founding member of Association of Credit Rating Agency Expansion of ratings operations to rating of toll Ventured into Advisory business and bagged 13 in Asia (ACRAA) roads,
Slide 16: Key Highlights
KEY HIGHLIGHTS • CARE ESG Ratings Limited to • CareEdge shall offer Sovereign • CARE Ratings (Africa) Private Limited function as a Category I ESG Credit Ratings & Global Scale signed an MoU with African Peer Ratings Provider after having Rating of Debt Securities through Review Mechanism (APRM) in
Slide 17: CareEdge Group: Foresight Backed by Expert Insights
CareEdge GROUP: FORESIGHT BACKED BY EXPERT INSIGHTS CareEdge Group CARE Ratings Limited (Parent Company) Subsidiaries 100% 100% 100% 78% 51% CARE Analytics CARE CareEdge Global IFSC CARE Ratings CARE Ratings and Advisory Private ESG Ratings Limited Limited (Africa) Nepal Limited Limited Private Limi
Slide 18: Ratings Business
RATINGS BUSINESS CareEdge Ratings - India CareEdge Ratings – Africa (Subsidiary of CARE Ratings Ltd. with 78% stake) ▪ India’s second largest credit rating agency with a track record of rating companies belonging to diverse ▪ Provides ratings for various instruments such as Bonds, Debentures, sector
Slide 19: Rating Stability (%): Better Than Industry Average
RATING STABILITY (%) : BETTER THAN INDUSTRY AVERAGE Average One-Year Stability rates for the last 5 Financial Years' Period 100 97.7 98.2 93.6 94.3 100 91.6 91.9 91.1 91.0 89.1 89.0 79.2 79.8 80 80 60 60 40 40 20 20 0 0 AAA AA A BBB BB B 2019-2023 2020-2024 Average (FY20-24) 19
Slide 20: Advisory & Consulting Services
ADVISORY & CONSULTING SERVICES Excellence in Quality, Comprehensive, Timely Delivery Advisory & Consulting Sustainability Practice Research Grading Practice Services Services • Bespoke Consulting • Customized Sectoral Research • AIF Grading • ESG Assessment & GAP Analysis • MFI (& COCA) Grading • In
Slide 21: ESG Advisory Services
ESG ADVISORY SERVICES • ESG Assessment & GAP Analysis ESG Integration • Policy Mapping & Development • Materiality Assessment & Stakeholder • ESG Strategy & Roadmap Engagement • BRSR Reporting & Assurance Readiness ESG Reporting • Environmental & Social Due Diligence for • ESG/Sustainability Reporti
Slide 22: Analytics Consulting
ANALYTICS CONSULTING 01 02 01 ▪ ▪ Customer Journey enhancements 02 Valuation Services ▪ Scorecard & Model ▪ Platform evaluation support 03 ns creation/validations ▪ Project Management services for anking Solutio onsulting Analytics ▪ Policy & SOP Reviews implementations Risk C Risk Technology Enable
Slide 23: Summary of Outreach Activities
Summary of Outreach Activities For Q4 For FY24 FY24 Reports Published 81 329 Webinars 10 26 Knowledge Sharing & Speaker Forums 33 110 Media coverages 947 2310 Opinion pieces published in Media 07 26 TV interviews 06 17 Individual Interactions & Quotes in Media 306 837 23
Slide 24: Outreach Activities: Q4FY24
OUTREACH ACTIVITIES: Q4FY24 Guest Speakers Webinars: 10 Moderated by CV Financing – Used CVs Marching Ahead View 1 Mr. Umesh Revankar Mr. Anil Bhavnani Ms. K. Vasumathi Devi Sanjay Agarwal Executive Vice Chairman, Senior Executive Vice President, Managing Director Senior Director, Shriram Finance Li
Slide 25: Outreach Activities: Q4FY24
OUTREACH ACTIVITIES: Q4FY24 Guest Speakers Webinars: 10 Moderated by At Cusp of Inflection, Power Financing Set for View 6 15% Growth in FY25 Ms. Monika Kalia Ms. Charu Kaistha Mr. Ankit Patel Sanjay Agarwal Deputy Managing Director, Chief General Manager, Senior VP & Senior Director, Chief Financia
Slide 26: Outreach Activities: Q4FY24
OUTREACH ACTIVITIES: Q4FY24 CareEdge as Knowledge Partner In partnership with the Mauritius Institute of Directors, CareEdge Ratings Africa hosted its second ESG Summit on January 30. The summit 1. The Indian Federation of Green Energy (IFGE) hosted its 4th served as a crucial forum for sharing insi
Slide 27: Outreach Activities: Q4FY24
OUTREACH ACTIVITIES: Q4FY24 Knowledge Sharing Forums & Speaker Invitations 6. Revati Kasture, Executive Director, was invited for a panel discussion by Inspire 360 Leadership Summit on ‘Gearing of India’s Financial Sector towards 30 trillion USD Economy by 2047’ on January 25. 7. Rajani Sinha, Chief
Slide 28: Outreach Activities: Q4FY24
OUTREACH ACTIVITIES: Q4FY24 Top Reports: Press release - CareEdge Ratings estimates India’s data centre capacity to double in three years View Asset Quality of Scheduled Commercial Banks to Stay Benign in FY25 View Natural Gas: Import Dependency Expected at Around 45% by FY26 View Diamond Exports Se
Slide 29: CSR Activities – FY24
CSR ACTIVITIES – FY24 • Automatic Wheelchairs provided to Paraplegic Rehab Center supporting the best aftercare and rehabilitation of the Armed Forces of India (Army, Navy & Air Force) who are medically boarded out. • 58 underprivilege kids are beneficiaries of ‘SweetCARE’ project catering to Juveni
Slide 30: 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 31: Contact Us
CONTACT US Company : Investor Relations Advisors : CARE Ratings Limited Strategic Growth Advisors Private Limited CIN: L67190MH1993PLC071691 CIN: U74140MH2010PTC204285 Ms. Ami Parekh / Mr. Chaitanya Satwe [email protected] [email protected] / [email protected] +91 80824 66052
Slide 32: Thank You!
Thank You! About Us CareEdge is a knowledge-based analytical group offering services in Credit Ratings, Analytics, Consulting and Sustainability. Established in 1993, the parent company CARE Ratings Ltd. (CareEdge Ratings) is India’s second-largest rating agency, with a credible track record of rati