 "CARE extends gain on margins improvement")
Shares of rating agency Credit Analysis and Research (CARE) has moved higher by 5.5% to Rs 1,438, extending its previous day’s nearly 4% gain on BSE, after an improvement in profit margins for the quarter ended September 2014 (Q2FY15).
The net profit margin increased to 54.1% in Q2FY15 from 49.6% % in Q2-FY14 and EBITDA margin moving from 75.0% to 76.4% during this period.
Improvement in profit margins was on account of a sustained increase in income from operations as well as other income relative to increase in expenditure. Diluted EPS for this quarter was also higher at Rs 17.96 compared with Rs 12.27 last year, CARE said in a press release.
“Our performance has been steady in this quarter and we are hopeful that overall economic conditions will improve in the coming months. Some of the decisions taken by the government on the fiscal side as well as project clearances will materialize into higher investment this year”, said D.R. Dogra, managing director & CEO CARE Ratings.
There are some signs of industry recovering which will help to revive the investment cycle, which in turn will be good for the credit rating industry, he adds.
Meanwhile, net profit in the second quarter increased by 50% to Rs 52.41 crore from Rs 35.05 crore.
The stock opened at Rs 1,379 and touched a high of Rs 1,446 on BSE. The counter has seen huge trading volumes with a combined 203,113 shares changed hands till 1510 hours against an average sub 50,000 shares that were traded daily in past two weeks on BSE and NSE.
The net profit margin increased to 54.1% in Q2FY15 from 49.6% % in Q2-FY14 and EBITDA margin moving from 75.0% to 76.4% during this period.
Improvement in profit margins was on account of a sustained increase in income from operations as well as other income relative to increase in expenditure. Diluted EPS for this quarter was also higher at Rs 17.96 compared with Rs 12.27 last year, CARE said in a press release.
“Our performance has been steady in this quarter and we are hopeful that overall economic conditions will improve in the coming months. Some of the decisions taken by the government on the fiscal side as well as project clearances will materialize into higher investment this year”, said D.R. Dogra, managing director & CEO CARE Ratings.
There are some signs of industry recovering which will help to revive the investment cycle, which in turn will be good for the credit rating industry, he adds.
Meanwhile, net profit in the second quarter increased by 50% to Rs 52.41 crore from Rs 35.05 crore.
The stock opened at Rs 1,379 and touched a high of Rs 1,446 on BSE. The counter has seen huge trading volumes with a combined 203,113 shares changed hands till 1510 hours against an average sub 50,000 shares that were traded daily in past two weeks on BSE and NSE.