CARE Ratings

Net sales (including other operating income) of CARE Ratings has increased 22% to Rs 96.38 crore. Sales of Ratings & Related Services segment has gone up 20.55% to Rs 84.88 crore (accounting for 88.07% of total sales). Sales of Others segment has gone up 38.62% to Rs 11.50 crore (accounting for 11.93% of total sales).

Profit before interest, tax and other unallocable items (PBIT) has jumped 32.18% to Rs 27.43 crore. PBIT of Ratings & Related Services segment rose 9.61% to Rs 29.14 crore (accounting for 106.23% of total PBIT). PBIT loss in Others segment rose 70.71% to Rs 1.71 crore (accounting for -6.23% of total PBIT).

PBIT margin of Ratings & Related Services segment fell from 37.75% to 34.33%. PBIT margin of Others segment rose from (-) 70.29% to negative 14.85%. Overall PBIT margin rose from 26.36% to 28.46%.

Operating profit margin has jumped from 29.69% to 31.56%, leading to 30.22% rise in operating profit to Rs 30.42 crore. Employee cost decreased from 54.03% to 52.22%. Other expenses fell from 16.29% to 16.21%.

Other income fell 13.38% to Rs 11.85 crore. PBIDT rose 14.12% to Rs 42.27 crore. Provision for interest rose 19.15% to Rs 0.56 crore. PBDT rose 14.06% to Rs 41.71 crore. Provision for depreciation rose 15.38% to Rs 3 crore.

Profit before tax grew 13.95% to Rs 38.71 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 10.35 crore, compared to Rs 10.04 crore. Effective tax rate was 26.74% compared to 29.56%.

Minority interest increased 19.15% to Rs 0.56 crore. Net profit attributable to owners of the company increased 18.50% to Rs 27.80 crore.

Commenting on the results for Q3FY25, Mehul Pandya, Managing Director & Group CEO of CareEdge, said: We are pleased to report that the company has demonstrated strong performance in both the ratings and non-ratings businesses, especially when seen against the backdrop of moderation in FY25 GDP growth projections. This performance underpins our unwavering commitment to quality led growth. Our ratings business has continued to gain traction, particularly in the initial ratings of capital market instruments, securitisation, and bank debt. Our subsidiaries have also done well. Within the first quarter of operations, CareEdge Global Ratings assigned global scale ratings to debt issuance of $2 billion across corporates and FIs. Similarly, CareEdge ESG Ratings assigned 2 ESG ratings. We aim to consistently add value for informed decision making by stakeholders through our offerings. While we are encouraged by our robust Q3 FY25 performance, we re-emphasize that our financial performance should be evaluated on an annual basis rather than quarter-on-quarter or sequential quarter basis. Over the past nine months, we have seen consistently strong performance in both our ratings as well as non-ratings segments, with the contribution of non-ratings segment depicting a steady increase. We remain confident in our ability to sustain the momentum with good growth in operating revenue and profitability as evidenced by the results over the last several quarters.

Financial performance: 9MFY2025

Net sales (including other operating income) of CARE Ratings has increased 21.17% to Rs 292.67 crore. Sales of Ratings & Related Services segment has gone up 19.49% to Rs 262.51 crore (accounting for 89.65% of total sales). Sales of Others segment has gone up 37.45% to Rs 30.31 crore (accounting for 10.35% of total sales). Inter-segment sales came down from Rs 0.20 crore to Rs 0.15 crore.

Profit before interest, tax and other unallocable items (PBIT) has jumped 31.90% to Rs 99.31 crore. PBIT of Ratings & Related Services segment rose 17.08% to Rs 107.96 crore (accounting for 108.70% of total PBIT). PBIT loss of others segment rose 48.90% to Rs 8.64 crore (accounting for -8.70% of total PBIT).

PBIT margin of Ratings & Related Services segment fell from 41.97% to 41.12%. PBIT margin of Others segment rose from (-) 76.72% to negative 28.52%. Overall PBIT margin rose from 31.15% to 33.92%.

Operating profit margin has jumped from 34.40% to 36.89%, leading to 29.93% rise in operating profit to Rs 107.97 crore. Employee cost decreased from 50.24% to 48.45%. Other expenses fell from 15.36% to 14.65%.

Other income fell 2.25% to Rs 35.58 crore. PBIDT rose 20.13% to Rs 143.55 crore. Provision for interest rose 19.84% to Rs 1.51 crore.

PBDT rose 20.13% to Rs 142.04 crore. Provision for depreciation rose 10.88% to Rs 8.66 crore.

Profit before tax grew 20.78% to Rs 133.38 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 36.75 crore, compared to Rs 32.42 crore. Effective tax rate was 27.55% compared to 29.36%.

Minority interest increased 27.39% to Rs 2.00 crore. Net profit attributable to owners of the company increased 23.80% to Rs 94.63 crore.

Care Ratings: Consolidated Results
'	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Sales	96.38	78.68	22	292.67	241.54	21	331.68	278.99	19
OPM %	31.6	29.7	'	36.9	34.4	'	33.8	35.7	'
OP	30.43	23.35	30	107.97	83.10	30	112.13	105.05	7
Other Income	11.85	13.68	-13	35.58	36.40	-2	46.69	37.94	23
PBDIT	42.28	37.04	14	143.55	119.50	20	158.82	142.99	11
Interest	0.56	0.47	19	1.51	1.26	20	1.71	1.00	71
PBDT	41.72	36.57	14	142.04	118.24	20	157.11	141.99	11
Depreciation	3.00	2.60	15	8.66	7.81	11	10.48	10.53	0
PBT	38.72	33.96	14	133.38	110.43	21	146.63	131.46	12
EO	0.00	0.00	-	0.00	0.00	-	0.00	-5.71	-
PBT after EO	38.72	33.96	14	133.38	110.43	21	146.63	125.75	17
Tax	10.35	10.04	3	36.75	32.42	13	44.07	40.29	9
PAT	28.37	23.92	19	96.63	78.01	24	102.56	85.46	20
Minority interest	0.56	0.47	20	2.00	1.57	27	2.04	1.93	6
Profit/Loss of Associate Company	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
PAT	27.80	23.46	19	94.63	76.44	24	100.52	83.53	20
EPS (Rs)*	37.2	31.4	'	42.2	34.1	'	33.6	27.9	'
*EPS is annualized on latest equity of Rs 29.92 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

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Care Ratings: Consolidated Segment Results''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
'	% of total	2412 (3)	2312 (3)	Var. (%)	% of total	2412 (9)	2312 (9)	Var. (%)	% of total	2403 (12)	2303 (12)	Var. (%)
Segment Revenue	'	'	'	'	'	'	'	'	'	'	'	'
Rating,Research and other Service	88.1	84.88	70.41	21	89.7	262.51	219.69	19	89.8	298.38	261.49	14
Consulting Services	11.9	11.50	8.30	39	10.3	30.31	22.05	37	10.2	33.90	17.91	89
Total Reported Sales	100.0	96.38	78.70	22	100.0	292.82	241.74	21	100.0	332.28	279.40	19
Less: Inter segment revenues	'	0.00	0.03	'	'	-0.15	0.20	'	'	0.59	0.41	'
Net Sales	100.00	96.38	78.68	23	100.00	292.67	241.54	21	100.00	331.68	278.99	19
PBIT	'	'	'	'	'	'	'	'	'	'	'	'
Rating,Research and other Service	106.2	29.14	26.58	10	108.7	107.96	92.21	17	123.9	125.95	110.00	15
Consulting Services	-6.2	-1.71	-5.83	-71	-8.7	-8.64	-16.92	-49	-23.9	-24.30	-21.19	15
Total PBIT	100.0	27.43	20.75	32	100.0	99.31	75.29	32	100.0	101.65	88.81	14
Less : Interest	'	0.56	0.47	19	'	1.51	1.26	20	'	1.71	1.00	71
Add: Other un-allcoable	'	11.85	13.68	-13	'	35.58	36.40	-2	'	46.69	37.94	23
Profit Before Tax	'	38.72	33.96	14	'	133.38	110.44	21	'	146.63	125.75	17
Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit'''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''''
Source: Capitaline Corporate Database