CARE RATING Announces Quarterly Results (3QFY21); Net Profit Up 7.7%

Wed, 10 Feb

CARE RATING has announced its results for the quarter ended December 2020. Here is a detailed performance review of the same:

CARE RATING Quarterly Financials

No. of Mths Qtr. Ending		3 Dec-19*	3 Sep-20*	3 Dec-20*	QoQ Change	YoY Change
Net Sales	Rs m	561	759	556	-26.7%	-0.9%
Other income	Rs m	71	80	81	1.6%	13.8%
Turnover	Rs m	633	839	637	-24.0%	0.7%
Expenses	Rs m	385	340	373	9.9%	-3.1%
Gross profit	Rs m	176	419	183	-56.4%	3.8%
Depreciation	Rs m	20	20	20	0.2%	0.8%
Interest	Rs m	2	2	2	-6.8%	-28.0%
Profit before tax	Rs m	225	477	242	-49.3%	7.6%
Tax	Rs m	49	119	52	-55.8%	7.1%
Profit after tax	Rs m	176	358	189	-47.2%	7.7%
Gross profit margin	%	31.3	55.2	32.8
Effective tax rate	%	21.7	24.8	21.6
Net profit margin	%	27.8	42.7	29.7

Year-on-Year Performance:

• The company's operating income during the quarter fell 0.9% on a year-on-year (YoY) basis. The expenses were down by 3.1% YoY during the same period.
• The company's operating profit increased by 3.8% YoY during the quarter. Consequently, operating profit margins witnessed a growth and stood at 32.8% in 3QFY21 as against 31.3% in 3QFY20.
• Depreciation charges increased by 0.8% and finance costs declined by 28.0% YoY, respectively.
• Other income increased by 13.8% YoY during the quarter.
• Net profit for the quarter increased by 7.7% YoY. Net profit margins during the quarter increased from 27.8% in 3QFY20 to 29.7% in 3QFY21.

Quarter-on-Quarter Performance:

• The company's operating income during the quarter fell 26.7% on a quarter-on-quarter (QoQ) basis. The expenses were up by 9.9% QoQ during the same period.
• The company's operating profit declined by 56.4% QoQ during the quarter. Consequently, operating profit margins witnessed a decline and stood at 32.8% in 3QFY21 as against 55.2% in 2QFY20.
• Net profit for the quarter declined by 47.2% QoQ, while net profit margins declined from 42.7% in 2QFY20 to 29.7% in 3QFY21.

To see how CARE RATING has performed over the last eight quarters,please visit here.

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CARE RATING Share Price Performance

Over the last one year, CARE RATING share price has moved down from Rs 596.0 to Rs 480.5, registering a Loss of Rs 115.5 or around 19.4%.

Overall, the S&P BSE SENSEX is up 24.9% over the year.

Current Valuations

At the current price of Rs 480.5, the price to earnings (P/E) ratio of CARE RATING stands at 17.4 times its trailing twelve months earnings, while its price to book value (P/BV) ratio stands at 2.5 times.