CARE Ratings Ltd · NSE:CARERATING
CARE Ratings — Q2 FY24 Earnings Presentation
25 slides from CARE Ratings's earnings presentation, November 2023
Slide 1: CARE Ratings Limited Investor Presentation Q2FY24 & H1FY24
CARE Ratings Limited Investor Presentation Q2FY24 & H1FY24
Slide 2: Macro-Economic Indicators
Macro-Economic Indicators 2
Slide 3: Fundraising Activity Moderates
FUNDRAISING ACTIVITY MODERATES Corporate Bond Issuances CP Issuances Corporate Bond Issuances Moderate in Q2 CP Issuances witness moderation FY24 but register strong growth in H1FY24 in H1FY24 (Rs. Lakh Crore) (Rs. Lakh Crore) 4.98 7.3 7.1 3.23 3.8 3.3 2.03 1.98 Q2FY23 Q2FY24 H1FY23 H1FY24 Q2FY23 Q2
Slide 4: Government Capex Supports Investment
GOVERNMENT CAPEX SUPPORTS INVESTMENT Gross Fixed Capital Formation Capacity Utilisation 70 80 61.0 60 75 73.6 72.4 50 70 % y-o-y 40 65 % 30 20.4 60 20 60 12.4 9.6 8.0 8.9 8.0 55 10 5.0 1.2 0 50 Mar-22 Mar-23 Mar-22 Mar-23 Jun-21 Jun-23 Jun-21 Jun-23 Dec-21 Jun-22 Jun-22 Sep-22 Dec-22 Dec-21 Sep-22 D
Slide 5: Investment Projects Slow
INVESTMENT PROJECTS SLOW Breakup of Net New Projects Investments by Ownership - H1 FY24 15 120 13 11 100 9 80 36.9 Rs Trillion 7 47.6 % Share 5 60 79.4 3 1 40 63.1 -1 52.4 20 -3 20.6 -5 0 Mar-21 Jun-20 Jun-21 Jun-22 Jun-23 Sep-20 Sep-21 Dec-21 Sep-22 Sep-23 Dec-20 Dec-22 Mar-22 Mar-23 New Announceme
Slide 6: Sectoral Bank Credit Growth
SECTORAL BANK CREDIT GROWTH Sectoral Deployment of Bank Credit* Size-wise Deployment of Industrial Credit Data up to August 2023 Data up to August 2023 25 40 36.6 20.7 35 20 17.4 30 27.7 15 25 Y-o-Y % Y-o-Y % 11.4 20 10 15 6.1 10.7 9.8 10 5 6.3 5.4 5 0 0 Industry (25.5) Services (28.6) Micro and Sma
Slide 7: Financials
Financials RATINGS
Slide 8: Standalone: H1FY24 Key Highlights
STANDALONE: H1FY24 KEY HIGHLIGHTS EBITDA PAT Rs. 65.50 Cr Rs. 62.37 Cr Operating (3% YoY) (10% YoY) Income Rs. 141.59 Cr (12% YoY) EBITDA PAT Margin Margin 46% 38% 8
Slide 9: Standalone: Q2FY24 Key Highlights
STANDALONE: Q2FY24 KEY HIGHLIGHTS EBITDA PAT Rs. 45.35 Cr Rs. 40.75 Cr Operating (2% YoY) (6% YoY) Income Rs. 85.11 Cr (10% YoY) EBITDA PAT Margin Margin 53% 42% 9
Slide 10: Profit & Loss Statement: H1FY24
PROFIT & LOSS STATEMENT: H1FY24 Standalone Consolidated Profit and Loss (Rs. Crs) H1FY24 H1FY23 (YoY) H1FY24 H1FY23 YoY Total Operating Income (TOI) 141.59 126.23 12% 162.86 139.33 17% Other Income 22.71 15.96 22.72 15.98 Total Income 164.30 142.19 16% 185.58 155.32 19% Total Expenses 80.45 66.49 21
Slide 11: Profit & Loss Statement: Q2FY24
PROFIT & LOSS STATEMENT: Q2FY24 Standalone Consolidated Profit and Loss (Rs. Crs) Q2FY24 Q2FY23 (YoY) Q2FY24 Q2FY23 YoY Total Operating Income (TOI) 85.11 77.49 10% 96.44 84.76 14% Other Income 11.51 8.63 11.19 8.46 Total Income 96.62 86.12 12% 107.63 93.22 15% Total Expenses 42.02 34.82 21% 57.57 4
Slide 12: About Us
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 13: CareEdge Turns 30
CareEdge TURNS 30 1993-1996 1997-2000 2001-2004 Commenced Rating Operations Launched ‘CARE Loan Ratings’ for rating term Founding member of Association of Credit Expansion of ratings operations to rating loans Rating Agency in Asia (ACRAA) of toll roads, electricity board, municipal Ventured into Ad
Slide 14: 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 Analytics & CARE Advisory Research CARE Ratings CARE Ratings (Africa) Advisory Private Ltd & Training Limited Nepal Limited Private Limited (CART) * (CRNL) (CR
Slide 15: Ratings Business
RATINGS BUSINESS CareEdge Ratings - India CareEdge Ratings – Africa ▪ India’s second largest credit rating agency with a track record of rating companies (Subsidiary of CARE Ratings Ltd. with 78% stake) belonging to diverse sectors ▪ Offers a range of high-quality analytical services to the ▪ CareEd
Slide 16: Analytics and Advisory - ESG & Sustainability Solutions
ANALYTICS AND ADVISORY - ESG & SUSTAINABLITY SOLUTIONS ESG Offerings Clientele Funds, FIs and ESG Benchmarking Analysis and performance tracking for pre-determined KPIs along Corporates seeking ESG E, S & G parameters, along with a comparison against industry leaders data and industry peers Identify
Slide 17: Analytics and Advisory – Consulting & Research
ANALYTICS AND ADVISORY – CONSULTING & RESEARCH CONSULTING RESEARCH Provides advisory services to Corporates, Financials Institutions, Banks and Institutional Investors Provides customised research services to Indian and Multinational corporates based on their Offering services in the field of infras
Slide 18: Analytics and Advisory - Risk & Analytics
ANALYTICS AND ADVISORY - RISK & ANALYTICS Analytics 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 Experienced professionals
Slide 19: Outreach Activities
Outreach Activities 19
Slide 20: CareEdge Conversations: Events in Q2FY24
‘CareEdge Conversations’: High-octane Events in Q2FY24 Celebrating 30 Years: Themed on 'Collaboration for Growth’, HM Shri Piyush Goyal, shared insights Mumbai on India’s global trade competitiveness, in discussion with CNBC TV18's Executive Editor, Latha Venkatesh. Themed on ‘India: Tapping into it
Slide 21: Outreach Activities: Q2FY24 Webinars
OUTREACH ACTIVITIES: Q2FY24 Webinars: Sparkling Shift: Lab-Grown C&I Segment: The New Unravelling the Microfinance Diamonds Gain while Natural Growth Engine for Renewable Landscape: Trends, Diamonds Brace for Margin Dip Energy Sector? Challenges, and Potential Hospitality Horizons: Rising from India
Slide 22: Outreach Activities: Knowledge Sharing Forums and Speaker Invitations
OUTREACH ACTIVITIES: Q2FY24 Knowledge Sharing Forums and Speaker Invitations: • Jury Member at the 8th ET Edge Infra Focus Summit. • Directors’ Strategy Meet, organised by National Highways Infra Trust (NHIT), Udaipur • Knowledge sessions at SBI, SBI Life Insurance on rating performance and economy
Slide 23: 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 24: Contact Us
CONTACT US Company : Investor Relations Advisors : CARE Ratings Limited Strategic Growth Advisors Private Limited CIN: L67190MH1993PLC071691 CIN: U74140MH2010PTC204285 Ami Parekh [email protected] [email protected] +91 80824 66052 www.careratings.com www.sgapl.net 24
Slide 25: About Us
About Us CareEdge is a knowledge-based analytical group that aims to provide superior insights based on technology, data analytics and detailed research. CARE Ratings Ltd, the parent company in the group, is one of the leading credit rating agencies in India. Established in 1993, it has a credible t