Credit Analysis and Research rose 1.58% to Rs 1,218 at 10:45 IST on BSE after net profit rose 9.4% to Rs 26.60 crore on 14.4% increase in total income to Rs 50.30 crore in Q1 June 2014 over Q1 June 2013.
The result was announced after market hours on Thursday, 31 July 2014.
Meanwhile, the BSE Sensex was down 126.83 points, or 0.49%, to 25,768.14.
On BSE, so far 4,650 shares were traded in the counter, compared with an average volume of 19,056 shares in the past one quarter.
The stock hit a high of Rs 1,225 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 1,180 so far during the day. The stock hit a 52-week low of Rs 415.05 on 2 August 2013.
The stock had outperformed the market over the past one month till 30 July 2014, rising 5.66% compared with 2.65% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 47.12% as against Sensex's 16.37% rise.
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The mid-cap company has an equity capital of Rs 29 crore. Face value per share is Rs 10.
Operating income of Credit Analysis and Research (CARE) rose 23.1% to Rs 34.70 crore in Q1 June 2014 over Q1 June 2013. EBITDA (earnings before interest, taxes, depreciation and amortization) rose 12.9% to Rs 30.90 crore in Q1 June 2014 over Q1 June 2013.
In Q1 June 2014, rating income improved by 23.1%. Growth was driven by two factors: higher surveillance income as well as marginal increase in the total volume of debt rated which stood at Rs 2.39 lakh crore.
The other component of total income, 'other income' which also includes income from investments in instruments such as FMPs, tax free bonds etc. decreased by 4.9% from Rs 15.60 crore in Q1 June 2013 to Rs 14.80 crore in Q1 June 2014.
Total expenditure increased by 20.7% mainly due to charge on account of the ESOS Scheme expense of Rs 1.43 crore and revision in depreciation rates of certain assets as per the useful life specified in Schedule II of the Companies Act 2013 of Rs 0.84 crore. Adjusted for these, expenditure increased by 9.3% only.
Profit margins (without the effect of ESOS and revised depreciation charge in Q1 June 2014) as defined by EBITDA and PAT are at 63.2% and 49.4%, respectively in Q1 June 2014 as against 61.5% and 48.3%, respectively in Q1 June 2013.
The volume of business of CARE was affected by low levels of activity in both the debt and credit markets. Overall debt raised through public issues and private placements was as Rs 52313 crore which saw a decline of 52.5% from Rs 110919 crore during the same period of the year ended March 2014. Growth in bank credit was lower at 2.1% over April 2014 compared with 2.7% in June 2013. However, with a combination of higher debt volumes rated and surveillance assignments, rating income increased at a steady rate.
During the quarter, consequent to the exercise of call option, CARE acquired 19.92 lakh equity shares representing 24.87% of the paid up equity share capital of its subsidiary CARE Kalypto Risk Technologies and Advisory Services, thus making it a wholly-owned subsidiary.
Commenting on the performance of Q1 June 2014, D.R. Dogra, Managing Director & CEO CARE, "Given that the markets have continued to remain subdued in this quarter, our performance has been satisfactory. We have worked on both the volume of debt rated as well as surveillance assignments to enhance business income. As the economy appears to look stronger and posed to grow at a better rate in FY15 compared with FY14 we do hope that there will be a pick-up in the debt market; and hence our initial ratings business."
CARE is the second largest full service rating company in India. CARE Ratings offers a wide range of rating and grading services across a diverse range of instruments and has over 20 years of experience in the rating of debt instruments and related obligations covering wide range of sectors.
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