CARE Ratings Ltd's Q3FY18 standalone net profit declines 2.25% yoy to Rs37.28cr : Numbers in-line with Estimates

The company’s standalone revenue stood at Rs74.82cr, up 13.45% yoy but down 17.75% qoq.

Jan 30, 2018 06:01 IST India Infoline Research Team

Credit Analysis & Research Ltd Q3FY18

Standalone Results Q3FY18: (Rs. in crore)

Q3FY18 YoY (%)
Revenue 74.82 13.5
EBITDA 46.36 4.7
EBITDA Margin (%) 62 [521]
Net Profit (adjusted) 37.28 [2.3]
***EBITDA margin change is bps


Reco. Price


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CARE Ratings Limited (CARE) reported revenue of Rs75cr in Q3FY18, a growth of 13% yoy. This was 6% higher than the consensus estimate of Rs71cr. EBITDA rose just 5% yoy to Rs46cr on the back of higher employee expenses (40% yoy). Consequently, EBITDA margin contracted 521bps yoy to 62%. The EBITDA number was 5% above the consensus estimate of Rs44cr. PAT for the quarter was 2% yoy lower at Rs37cr, in line with estimates. 

Other Highlights

  • Employee expenses were 40% yoy higher on account of ESOP charge of Rs5cr and due to expenses incurred on expanding SME marketing team and brand building expenses.
  • Other income for the quarter was 30% yoy lower due to Ind-AS impact on accounting for fair value of investments.
  • The Board of Directors of CARE declared third interim dividend of Rs6 per share taking the total dividend per share till date in FY18 at Rs18.
  • The quarter was characterized by higher IIP as industry went in for restocking of goods to adjust to the new tax regime. However, growth in bank credit was concentrated in retail and agriculture segments while growth in credit to manufacturing and services sector was negative.
  • Total debt issuances in the corporate bond market were 10% yoy lower in 9MFY18 at Rs4.55lakh crore against Rs5.07lakh crore in 9MFY17.
  • Total volume of fresh debt rated increased 10% yoy to Rs10.40lakh crore in 9MFY18 against Rs9.44lakh crore in 9MFY17.

Technical View:

CARE Ratings Ltd is currently trading at Rs1,370, down by 14.65 points or 1.06% from its previous closing of Rs1,384.65 on the BSE. The scrip opened at Rs1,387.25 and has touched a high and low of Rs1,387.25 and Rs1,363.05 respectively. So far 93,070 (NSE+BSE) shares were traded on the counter. The stock is currently trading below its 200 DMA.

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