CARE Ratings Q1 Review - Earnings In-Line; GDP Growth A Key: Centrum Broking
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Centrum Broking Report
CARE Ratings Ltd.’s Q1 FY22 earnings were mainly in-line.
Revenue, though in line with expectations, declined sharply QoQ due to seasonality. On a YoY basis, ratings revenue grew by 28%.
Opex was a bit higher due to employee cost that included employee stock ownership plan cost of Rs 17.2 million. Ebit at Rs 55 million was as envisaged.
FY22 sales would depend on gross domestic product growth, which has been maintained by CARE Ratings at ~9%.
We see a revenue compound annual growth rate of 13% over FY21-23E.
Revenues should see a strong build-up in the coming quarters, with initial focus on the ratings piece.
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