Q4-FY15 and FY15 Financial Results

D. R. Dogra
MD & CEO

Disclaimer
Certain statements in this document may be forward-looking
statements. Such forward-looking statements are subject to certain
risks and uncertainties like government actions, economic
developments, and many other factors that could cause the
companys actual results to differ materially from those contemplated
by the relevant forward-looking statements. Credit Analysis and
Research Ltd. will not be in any way responsible for any action taken
based on such statements and undertakes no obligation to publicly
update these forward-looking statements to reflect subsequent events
or circumstances.

Q4FY15 & FY15 Analyst Presentation

12th May 2015

12

Contents

Highlights

Financial & Business Performance

Developments at CARE

Economic Backdrop

Long Term Performance

Q4FY15 & FY15 Analyst Presentation

12th May 2015

3

Highlights Q4 FY15
Steady growth in Financial indicators
Growth in operating income recorded 2.88% increase in Q4-FY15 over Q4FY14
Decline in total income of 3.00% in Q4-FY15 over Q4-FY14
Like to like growth in expenditure of 4.08% (excluding ESOP charge of Rs 1.23
crore, Finance cost of Rs. 0.01 crore, CSR spend of Rs. 0.50 crore & additional
depreciation charge of Rs 0.42 crore pre-tax)

Operating profit margins at 68.14% and PAT margins at 45.25% in Q4-FY15

1,529 new clients added during Q4-FY15

Business profile
Total Volume of debt rated recorded a significant increase of 85% to Rs 4.47
lakh cr in Q4-FY15 as against Rs 2.41 lakh cr in Q4-FY14
Total number of instruments rated were 3,199
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Highlights FY15
Strong financial performance continues.
Growth in operating income of 12.09% in FY15 over FY14
Growth in total income for FY15 of 13.45% over FY14
Like to like growth in expenditure of 8.99% (excluding ESOP charge of Rs 5.29
crore, Finance cost of Rs. 1.30 crore, CSR spend of Rs. 0.50 crore & additional
depreciation charge of Rs 2.44 crore pre-tax)
Operating profit margins at 64.28% and PAT margins at 48.94% in FY15
3,878 new clients added during FY15

Business profile
Total Volume of debt rated stood at Rs.10.97 lakh crore in FY15 as against Rs.
8.86 lakh crore in FY14.
Total number of instruments rated were 7,973 in FY15 against 7,865 in FY14.

Q4FY15 & FY15 Analyst Presentation

12th May 2015

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Contents

Highlights

Financial & Business Performance

Developments at CARE

Economic Backdrop

Long Term Performance

Note: Financial numbers in all tables and graphs in the presentation excludes certain costs as
stated in Highlights
Q4FY15 & FY15 Analyst Presentation

12th May 2015

Financial Performance
Rs crore

Q4-FY14

Q4-FY15

Growth (%)

FY14

FY15

Growth (%)

Rating Revenue

74.37

76.72

3.17

226.91

254.92

12.34

Other Revenue

1.30

1.13

-13.38

2.55

2.29

-10.47

Total Revenue

75.67

77.85

2.88

229.46

257.21

12.09

Other Income

7.89

3.20

-59.43

35.66

43.56

22.16

Total Income

83.55

81.05

-3.00

265.12

300.77

13.45

Total Expenses

23.83

24.80

4.07

84.29

91.86

8.99

Op. Profit

51.84

53.05

2.33

145.18

165.34

13.89

PAT

42.33

36.68

-13.35

129.70

147.19

13.49

Note: Expenses stated in the table above excludes certain costs as stated in Highlights
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Financial Performance Q4 FY14 and Q4 FY15 (Rs. In cr)

83.55

Total Income

80

Total Expenditure
81.05

30

60

23.83

24.80

Q4 FY14

Q4 FY15

20

40

10

20

0
Q4 FY14

Q4 FY15

Op. Profit
60

51.84

PAT
53.05

50

42.33

40

45

36.68

30

30

20

15

10

0
Q4 FY14

Q4 FY15

Q4 FY14
Q4FY15 & FY15 Analyst Presentation

Q4 FY15
12th May 2015
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Financial Performance Q4 FY15 Margin %

Op. Profit Margin
68.51

68.14

Q4 FY14

Q4 FY15

60
45
30
15
0

PAT Margin
55

50.66

45.25

44

33
22
11
0
Q4 FY14

Q4FY15 & FY15 Analyst Presentation

Q4 FY15

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Financial Performance FY14 vs. FY15(Rs. In cr)

Total Income
320

265.12

Total Expenditure
300.77

100

240

75

160

50

80

25

0
FY14

FY15

FY14

Op. Profit
170

FY15

PAT
165.34

160
150

91.86

84.29

147.19

150
140

145.18
130

140
130

129.70

120
FY14

FY15

FY14
Q4FY15 & FY15 Analyst Presentation

FY15
12th May 2015
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Financial Performance FY14 vs. FY15 Margin %

Op. Profit Margin
78
65
52
39
26
13
0

63.27

64.28

FY14

FY15

PAT Margin
50

48.92

48.94

FY14

FY15

40
30
20
10
0

Q4FY15 & FY15 Analyst Presentation

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Business Performance
Total Active Clients
12,000
9,828

10,000
7,754

8,000
6,000

5,263
3,900

4,000
2,000

1,114

FY11

FY12

FY13

FY14

Q4FY15 & FY15 Analyst Presentation

FY15

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Business Performance: Q4FY14 vs. Q4FY15

Value of debt rated (Rs. lakh cr)

No. of Instruments rated

5
3,500

3,199

3,000
2,500

4.47

4.5
4

2,421

3.5
3

2,000

2.5
1,500

2.41

1,000

1.5

500

1
0.5

Q4-FY14

Q4-FY15

0
Q4-FY14

Q4FY15 & FY15 Analyst Presentation

Q4-FY15

12th May 2015

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Business Performance: FY14 and FY15

No. of Instruments rated
8,000

7,865

7,973

Value of Debt rated (Rs. lakh cr)

12

7,000

10

6,000
5,000

10.97

6,117

8.86
5,054

6.45

4,000
6

5.57

2,479

3,000

3.8

4
2,000

2.98

1,407

1,000

289

317

123

0.72
0.31

52

BLR

LT

ST & MT

FY14

Others

FY15

Total

0
BLR

LT

ST & MT

FY14

Q4FY15 & FY15 Analyst Presentation

Total

FY15

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Contents

Highlights

Financial & Business Performance

Developments at CARE

Economic Backdrop

Long Term Performance

Q4FY15 & FY15 Analyst Presentation

12th May 2015

15

Developments at CARE in FY15

Hosted its flagship event CARE Debt Market Summit (CDMS) 2015 in Mumbai
on 23rd March 2015 which was graced by Mr R. Gandhi, DG, RBI
Unveiled the Debt Book 2015- Snapshots & Perspectives at its CDMS 2015 event.

Rated the first Green Infrastructure bond

CARE is empanelled by Government of Karnataka for rating of Tourism sector
in the state.
MoUs signed
Axis Bank for SME lending.
Andhra bank for due diligence services on 2nd July 2015.

CARE has been the knowledge partners with CII, ASSOCHAM, FICCI and SME
chambers of commerce.
Global
ARC Ratings completed ratings of four countries viz. India, Maldives, Mauritius and Portugal in

FY15
In process of setting up operation in Mauritius
Q4FY15 & FY15 Analyst Presentation

12th May 2015

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Contents

Highlights

Financial & Business Performance

Developments at CARE

Economic Backdrop

Long Term Performance

Q4FY15 & FY15 Analyst Presentation

12th May 2015

17

Economic Backdrop
Growth to be 7.4% in FY15 (6.9% in FY14)
8

Industrial growth still a concern

5

7.8

7.8
7.5

7.4

3.5

2.8

3
%

7.6
7.2

4.2

4
2
1

6.8

-0.1 FY14

-1

6.6
Q1FY15

Q2FY15

Q3FY15

FY15
IIP (11 mths)

Core

Trade contract, deficit improves

Moderation in inflation over the year
10

4.91

-6

-2

-8

%
2

% -2
-4

-0.38
Imports

Exports
-1.48

-8.44

-10

-4
CPI

WPI

FY14

Q4FY15 & FY15 Analyst Presentation

FY15

12th May 2015

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Economic Backdrop
Lower growth in deposits and credit
16
14

14.1

13.9

11.4

12

8.49
7.93

7.7 7.75

7.75 7.75

7.5

6.5

2
0
FY14

Deposits

Credit

FY15

Repo

Debt issuances increase, but mostly from banks

413,878
318,877

FY14

10-years

Rupee continued to depreciate

Rs/$

Rs. cr.

8.62

8
7.5

450,000
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0

8.73

8.17

8
4

8.91

8.5

9.5

10
%

Declining interest rates

9.5

64
63
62
61
60
59
58
57

62.75
61.7

62.45

60.9
59.31

FY15

Q4FY15 & FY15 Analyst Presentation

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Ratings Movements
Credit quality of domestic rated firms/entities has improved during the year FY15. The
Modified Credit Ratio (MCR) rose to 4-year high of 1.14 in FY15 from 1.01 in FY14.

1.29

1.25
1.23
1.11
0.95

Q4FY15 & FY15 Analyst Presentation

Q4 FY15

Q3 FY15

Q2 FY15

Q1 FY15

Q4 FY14

Q3 FY14

Q2 FY14

Q1 FY14

Q4 FY13

Q3 FY13

0.80

Q2 FY13

Q1 FY13

Q4 FY12

Q3 FY12

1.02

0.88
0.80

Q2 FY12

1.10

1.05

1.02

Q1 FY12

1.40
1.30
1.20
1.10
1.00
0.90
0.80
0.70
0.60

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Contents

Highlights

Financial & Business Performance

Developments at CARE

Economic Backdrop

Long Term Performance

Q4FY15 & FY15 Analyst Presentation

12th May 2015

21

Financial position
350
300
250
200
150
100
50
0

EBIDTA
265

177

250

301

211

200

227

206

Rs cr

Rs cr

Total income

150

136

FY12

FY13

100

0
FY12

FY13

FY14

FY15

FY11

PAT

FY14

FY15

Dividend Payout Ratio

200

250
135

87

91

147

192

200

108

150
%

150
Rs cr

163

50
FY11

100

151

184

100

50

50

58

74

30

0
FY11

FY12

FY13

FY14

FY15

FY11

FY12

FY13

Q4FY15 & FY15 Analyst Presentation

FY14

FY15

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Financial position
Book Value Per Share
60

167.01
148.5

45.90

50

132.1

124.29

40

106
Rs cr

180
160
140
120
100
80
60
40
20
0

Basic Earnings Per Share

37.7

39.7

FY12

FY13

48.4

31.8

30
20
10
0

FY11

FY12

FY13

FY14

FY15

FY11

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FY14

FY15

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Shareholding Snapshot as on March 31, 2015

100% Public Shareholding- Professionally Managed

IFI

0.49
9.94
25.61

8.62

13.49

6.14

PSU /
Govt
PSU
Banks
Mutual
Funds
FII
Other
Banks
FPI

25.05
0.72

Others

Names of Shareholder holding above 1%

Holding %

Life Insurance Corporation of India

9.94

Canara Bank

9.90

IDBI Bank Ltd

6.21

Franklin Templeton Investment Funds

4.79

State Bank of India

4.69

Bajaj Holdings and Investments Ltd.

3.46

Government Pension Fund Global

3.06

Russell Investments Limited

1.83

CLSA Global Markets Pte Ltd.

1.72

Parvest Equity India

The Wellington Trust Company National
Association
Reliance Capital Trustee Company Ltd.

1.68

Tata Steel Limited

1.22

GMO Emerging Domestic Opportunities Fund

1.20

Franklin Templeton Mutual Fund A/C

1.10

Tata Investment Corporation Limited

1.06

Aditya Birla Private Equity Trust

1.03

Macquarie Fund Solutions A/C Macquarie Fund

1.02

Total

Q4FY15 & FY15 Analyst Presentation

1.64
1.54

57.09

12th May 2015

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Thank You

Q4FY15 & FY15 Analyst Presentation

12th May 2015

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