CARE reports flat net in Q3

Rating agency says performance affected by overall macroeconomic conditions and capital market activity

Rating agency CARE today posted a flat net profit for the December quarter at Rs 28.02 crore and guided towards tougher quarters ahead because of the onging economic gloom.
    
The homegrown rating agency had posted a post-tax profit of Rs 27.82 crore in the corresponding October-December period last year.
    
"Our performance was affected by the overall macroeconomic conditions and capital market activity...In the coming quarters, we expect subdued macros impacting industrial activity and the credit rating sector resultantly," it said in a statement.
    

The company's total income grew 13.3 per cent to Rs 60.55 crore during the reporting quarter while the pre-tax profit was up 1 per cent to Rs 39.18 crore, it said.

    
CARE said the debt market, which accrues revenues for agencies for rating the instruments, remained subdued during FY14, with only Rs 1,96,440 crore being issued till December as against the Rs 2,64,045 crore in the same period last fiscal.
    
The company board declared an interim dividend of Rs 6 per share, which adds to the total dividend of Rs 18 per share declared earlier, it said.
    
The company scrip was trading 0.66 per cent up at Rs 722.85 a piece on the BSE at 1406 hours, with the bourse's 30-share benchmark up 0.30 per cent.