CARE Ratings - Q4 FY21 results first cut: Stellar Performance - YES Securities

- Revenue - Revenue came in at Rs 796mn which was a strong growth of 21% on YoY basis and 43% QoQ basis. The growth was driven by strong performance in both rating (19% yoy, 47% qoq) as well as non-rating segment (98% yoy, 82% qoq).

- Operating Cost - Employee cost saw a jump of 26% partially contributed by ESOP charge amounting to Rs. 22.6mn v/s NIL in corresponding period. Although, other expenses saw a decrease of 39% on YoY basis, it almost doubled on QoQ basis.

- EBITDA - Operating profit came in at Rs. 306mn, which double on YoY basis and grew by 67% on QoQ basis. EBITDA margin stands at 38.4% which was an expansion of 1541bps yoy and 556bps on QoQ basis.

- PAT - PAT stood at Rs. 265mn, a growth of 69% y/y and 40% qoq.

- Proposed Dividend: The board proposed a final dividend of Rs 6 per share.

- New appointments: Ms. Nehal Shah as the Company Secretary & Compliance Officer with effect from June 12, 2021, Mr. Jinesh Shah as the Chief Financial Officer of the Company with effect from June 12, 2021

- New auditors: Considered the appointment of M/s B S R & Co. LLP, Chartered Accountants as the Statutory Auditors of the Company for a period of five years

- Valuations - The stock currently trades at FY23 P/E of 19x. We currently have an ADD rating. We will review our estimates post the interaction with management on Monday.

Shares of CARE Ratings Ltd was last trading in BSE at Rs.630.8 as compared to the previous close of Rs. 601.1. The total number of shares traded during the day was 121179 in over 5827 trades.

The stock hit an intraday high of Rs. 651.85 and intraday low of 611.35. The net turnover during the day was Rs. 76584294.

Source : Equity Bulls

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