Care Ratings Ltd · NSE:CARERATING
Care Ratings — Q1 FY21 Earnings Presentation
24 slides from Care Ratings's earnings presentation, Aug 11, 2020
Slide 1: Outcome of Board Meeting cover letter to exchanges
ch3@ Ratings Professional Risk Opinion Date: August 10, 2020 SE/2020-21/033 To, The National Stock Exchange India Ltd. The General Manager listing Department The Corporate F,elation Department Exchange Plaza BSE Limited Bandra Kurla Complex Phiroza Jeejeebhoy Towers Bandra (East) 14t h Floor, Dalal
Slide 2: Investor Presentation Q1 FY21
Investor Presentation Q1 FY21
Slide 3: Contents
Contents ~~Ratings Professional Ri sk Opinion Highlights Financial & Business Performance MCR/CDQI Economic Backdrop Q1 FY21 Investors’ Presentation Page: 2
Slide 4: CARE Ratings Group
CARE Ratings Group ~~Ratings Professional Risk Opinion CARE Ratings Limited CARE Risk CARE Advisory CARE Ratings CARE Ratings Solutions Research and (Africa) (Nepal) Private Training Limited, Private Limited, 51% Limited, 100% 100% Limited, 78% Q1 FY21 Investors’ Presentation Page: 3
Slide 5: Diversified Business Mix
Diversified Business Mix ~~Ratings Professional Risk Opinion Ratings Information Analysis & Grading Manufacturing & Services sector Industry & Customized Research reports Financial sector CARE Industry Risk Metrics (CIRM) reports Infrastructure Grading services Small & Medium Enterpris
Slide 6: Contents
Contents ~~Ratings Professional Ri sk Opinion Highlights [ Financial & Business Performance [ MCR/CDQI Economic Backdrop Q1 FY21 Investors’ Presentation Page: 5
Slide 7: Financial Performance
Financial Performance ~~Ratings Professional Risk Opinion Rs. in Crores Standalone Consolidated % Change % Change Particulars Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 Total Revenue 42.49 52.96 -20% 46.89 57.73 -19% Total Expenses 30.09 35.68 ,. -16% 34.55 39.89 -13% Profit Before Tax ,. 12.40 ,. 17.28 -28% ,
Slide 8: Financial Performance: Q1 FY21 (Rs Cr) - Standalone
~~Ratings Professional Risk Opinion Financial Performance: Q1 FY21 (Rs Cr)- Standalone Total Revenue PBT 60.00 52.96 20.00 17.28 50.00 42.49 15.00 12.40 40.00 10.00 30.00 5.00 20.00 - 10.00 Q1 FY21 Q1 FY20 - Q1 FY21 Q1 FY20 PAT Total Expenditure 15.00 13.09 40.00 35.68 9.93 35.00 10.00 30.09 30.00 5
Slide 9: Financial Performance: Q1 FY21 - Standalone
~~Ratings Professional Risk Opinion Financial Performance: Q1 FY21- Standalone PBT Margin (%) Q1 FY21 PBT margin & PAT margin fell 34 33 32 due to lower income (as CARE Ratings 30 29 has witnessed a impact of COVID-19 and 28 the consequent lockdown announced 26 Ql FY21 Ql FY20 affecting the operatio
Slide 10: Business Performance: Q1 FY21
~~Ratings Professional Risk Opinion Business Performance : Q1 FY21 4.50 1,400 Volume of Debt Rated (Rs lk cr) No of Instruments Rated 1,223 4.00 3.90 1,200 3.50 1,000 916 3.00 2.59 800 2.50 1.91 600 2.00 512 1.59 1.50 400 351 1.17 1.00 0.82 0.83 212 200 73 72 84 0.50 22 5 0.18 - 0.00 Short & Long te
Slide 11: Contents
Contents ~~Ratings Professional Ri sk Opinion Highlights Financial & Business Performance MCR/CDQI Economic Backdrop Q1 FY21 Investors’ Presentation Page: 10
Slide 12: Rating Movement
~~Ratings Rating Movement Professional Risk Opinion The credit profile of entities rated by CARE Ratings has witnessed a perceptible moderation in the current financial year triggered mainly by COVID-19 and the consequent lockdown announced affecting the operations of most entities. The credit quali
Slide 13: CARE Ratings Debt Quality Index (CDQI)
~~Ratings CARE Ratings Debt Quality Index (CDQI) Professional Risk Opinion The index has seen a notable increase in April’20 on account of enhancements in rated debt of high rated entities while it remained almost stable in May 2020 at 89.58. CDQI increased by 0.20 points in June 2020 on account of
Slide 14: Contents
Contents ~~Ratings Professional Ri sk Opinion Highlights Financial & Business Performance MCR/CDQI Economic Backdrop Q1 FY21 Investors’ Presentation Page: 13
Slide 15: Economic Growth and Industrial Output
~~Ratings Economic Growth and Industrial Output Professional Risk Opinion GDP growth (%) IIP Growth (%) 9.0 10.0 8.2 3.9 8.0 8.0 7.2 0.0 7.0 6.1 6.0 -10.0 5.0 % 4.2 % -20.0 4.0 3.0 -30.0 2.0 -40.0 1.0 0.0 -50.0 -45.8 FY16 FY17 FY18 FY19 FY20 FY20 (Apr-May) FY21 (Apr-May) Source: MOSPI Source: MOSPI
Slide 16: Inflation and Exchange Rate
~~Ratings Inflation and Exchange Rate Professional Risk Opinion 10.0 Inflation Rs/$ 8.0 Aug-19 Dec-19 Feb-20 Apr-19 Apr-20 Oct-19 Jun-19 Jun-20 6.36.1 6.0 64 4.0 66 % 2.0 68 69.43 0.0 -1.8 70 -2.0 72 -4.0 -3.2 74 74.99 Jun-19 Jun-20 Oct-19 Feb-20 Dec-19 Apr-19 Aug-19 Apr-20 76 75.73 CPI (%) WPI (%)
Slide 17: Bank Credit
~~Ratings Bank Credit Professional Risk Opinion Growth in Bank credit Growth in Credit -1.1 2.0 1.5 1.3 -1.2 1.0 -0.4 -1.2 0.0 -1.2 -1.0 -1.2 -1.0 -1.2 % -2.0 % -1.2 -3.0 -2.6 -2.6 -2.5 -1.3 -4.0 -1.3 -5.0 -1.3 -6.0 -5.4 -1.3 Agriculture Industry Services Retail -1.3 Q1 FY20 Q1 FY21 ■ Q1 FY20 ■ Q1 F
Slide 18: Non-Performing Assets
~~Ratings Non-Performing Assets Professional Risk Opinion GNPA Ratio 12 10 11.20 8 9.30 9.30 8.50 6 7.50 % 4 2 0 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Note: Gross NPAs as a percentage of gross advances Source: RBI Q1 FY21 Investors’ Presentation Page: 17
Slide 19: Corporate Bond Issuances
~ ~ Ratings Corporate Bond Issuances Professional Risk Opinion Corporate Debt Raised • During the first quarter, majority of the 2,50,000 corporate bond issuances are raised by the financial sector (57% share) 2,00,000 • Banks/term lending (28%), financial 2,09,426 2,09,426 services/investment (16%)
Slide 20: Commercial Paper
~~Ratings Commercial Paper Professional Risk Opinion CP Issuances • Within the total CP issuances during the quarter, the highest issuances were raised 7.00 by oil exploration and refineries (25%) 6.24 6.00 followed by banking/term lending (14%) and 5.04 power (12%) 5.00 Rs. Lkah crore 3.91 • Some o
Slide 21: Interest Rate and GSec yields
~~Ratings Interest Rate and GSec yields Professional Risk Opinion Repo Rate (%) & MCLR(%) G Sec Yield (%) 12 7.50 11 10 7.00 9 7.70 % 8 6.50 7 % 6 6.00 5 4.00 4 5.50 Apr-20 Jun-19 Jun-20 Oct-19 Feb-20 Dec-19 Aug-19 5.00 Apr-19 May-19 Jul-19 Aug-19 Sep-19 Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May
Slide 22: Central Govt.'s Rs. 20 lakh cr stimulus package
~~Ratings Central Govt.’s Rs. 20 lakh cr stimulus package Professional Risk Opinion Announcements Amount (Rs crs) PM Garib Kalyan Yojana 1,70,000 Spending on health sector 15,000 Support for MSMEs (Credit Guarantee) 3,70,000 EPF relaxation 9,250 NBFC/HFC/MFI liquidity (Credit guarantee) 30,000 Parti
Slide 23: RBI measures
~~Ratings RBI measures Professional Ri sk Opinion Repo Rate • 115 bps cut to 4% Liquidity Measures (Rs lakh crs) Reverse • Cut by 155 bps Liquidity facility - Exim Repo Rate 0.15 Bank Loan • For 6 months Refinancing to NABARD, Moratorium SIDBI 0.50 LCR • Reduced to 80% SLF-MF 0.50 CRR • 100 bps cut
Slide 24: Thank you
~~Ratings Professional Risk Opinion Thank you Q1 FY21 Investors’ Presentation Page: 23