CARE Ratings fell 12.68% to Rs 658.1 at 9:56 IST on the BSE after consolidated net profit declined 47.3% to Rs 13.18 crore on 16.8% fall in net sales to Rs 49.92 crore in Q1 June 2019 over Q1 June 2018.
The result was announced after market hours yesterday, 31 July 2019.
Meanwhile, the S&P BSE Sensex was down by 340.15 points or 0.9% to 37,542.64.
On the BSE, 5552 shares were traded in the counter so far compared with average daily volumes of 3343 shares in the past two weeks. The stock had hit a high of Rs 718.6 so far during the day. The stock had hit a low of Rs 650.95 so far during the day, which is also a 52-week low for the counter. It hit a 52-week high of Rs 1399 on 5 September 2018.
The prolonged period of headwinds faced by the NBFC sector since the end of the second quarter of FY19 had its impact on the borrowings by this crucial segment of the economy. With the capex related borrowings of the corporate sector also not picking up, the performance of the company got impacted. Further, rating income is a function of availability of adequate information (including audited results) for conclusion of ratings and as such, can impact the quarterly rating revenues, especially in the first quarter.
"Our view on the state of the economy is cautious and the future growth of our business will be contingent on how the financial markets fare in the coming months. Overall growth in GDP for the year would be just above last year's growth, but the crux would be a pick‐up in investment. The NBFC problem is still in the process of being resolved by the government and RBI and the early resolution will have a bearing on the performance of the bond market," said T.N. Arun Kumar, interim CEO.
CARE Ratings is a leading credit rating agency of India. The company provides various credit ratings that help corporates to raise capital for their various requirements and assist the investors to form informed investments decision based on the credit risk and their own risk-return expectations.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
