CARE Rating's Q1FY19 consolidated net profit declines 28% yoy to Rs25cr : Misses Estimates

The company’s consolidated revenue stood at Rs60cr, down 5% yoy and 40% qoq.

Aug 13, 2018 04:08 IST India Infoline Research Team


Consolidated Results Q1FY19: (Rs. in cr)

Q1FY19 YoY (%)
Revenue 59.99 [4.7]
EBITDA 28.03 [27.3]
EBITDA Margin (%) 46.7 [1,453]
Net Profit (adjusted) 25.03 [28.2]
***EBITDA margin change is bps

CARE Ratings Limited (CARE) reported disappointing set of numbers in Q1FY19 on all three fronts – revenue, EBITDA and PAT. Consolidated revenue was ~5% yoy lower (40% qoq lower) at Rs60cr, missing consensus revenue estimate of Rs68cr. High operating and employee cost severely dented operating performance. Consolidated EBITDA declined 27% yoy (53% qoq) to Rs28cr, while EBITDA margin declined more than 1,450bps yoy (more than 1,330bps qoq) to 46.7%. EBITDA and EBITDA margin missed consensus estimate of Rs40cr and 58.2% respectively. Decline in consolidated PAT was slightly lower compared to EBITDA decline due to stable tax rate and lower depreciation. Consequently, consolidated PAT was 28% yoy lower (40% qoq lower) at Rs25cr. PAT missed consensus estimate of Rs32cr by a wide margin.

Other highlights

  • The board of directors declared the first interim dividend of Rs6/- per equity share during the board meeting.
  • Independent Director, Mr. Milind Sarwate, resigned from board of the company w.e.f. August 13, 2018.
  • Total debt rated by the company in Q1FY19 was marginally lower at Rs3.81Lakh cr against Rs3.89Lakh cr in Q1FY18.

Technical View:

CARE Ratings Ltd is currently trading at Rs. 1,318.95, down by 3.35 points or 0.25% from its previous closing of Rs. 1,322.30 on the BSE.
The scrip opened at Rs. 1,316.25 and has touched a high and low of Rs. 1,342 and Rs. 1,286 respectively. So far 17,529 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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