CARE Ratings' Q4 net dips 15 per cent at Rs 35 crore

Credit Analysis and Research (CARE) has registered a 15 per cent dip in its net profit at Rs 35.09 crore in the fourth quarter ended March 31, 2015 on account of fall in investment income.
Its net profit stood at Rs 41.30 crore in the corresponding quarter of the previous fiscal.
Income for the quarter under review fell by 9.69 per cent at Rs 81.04 crore against Rs 83.55 crore in the corresponding quarter year ago.
"Our investment income came down to Rs 3.2 crore in Q4FY15 from Rs 7.89 crore in Q4FY14 as we had to book profit on cash basis rather than accrual basis for major investments," CARE Rating managing director and chief executive DR Dogra said.

For FY15, the company's net increased at Rs 140.33 crore on a standalone basis against Rs 128.67 crore in FY14. Income for the same period grew at Rs 300.76 crore in the reporting year against Rs 265.12 crore year ago.
On the consolidated basis, the company registered a growth in net profit at Rs 137.81 crore in FY15 against Rs 129.40 crore in FY14. Total income also rose at Rs 304.24 crore in FY15 from Rs 271.37 crore in FY14. CARE has declared a dividend of Rs 8 per share for FY15.

The rating agency also launched CARE Ratings Debt Quality Index (CDQI), an index assaying the debt quality of 1589 companies tracked with a base year of 2011-12.

It would be updated on a monthly basis to show the change in the quality of debt in these companies. The index covers corporate debt (bonds and debentures with a tenor of over one year) besides bank loans of the same tenor.
"With the financial system being afflicted by the quality of assets, this debt index provides a different perspective. Rather than look at how quality has fared as against last year, we are doing the same with a base year. We have aligned the base year to 2011-12 which is being used by the Government for all their indices," CARE Ratings deputy managing director Rajesh Mokashi said.

Total outstanding debt for banks, excluding agriculture and retail credits, as on date is Rs 26 lakh crore, whereas total corporate debt went up to Rs 17 lakh crore during the year. In overall, total debt into the system was at Rs 75 lakh crore, he added.