Consolidated operational revenues slipped 17 per cent at Rs 499 crore against Rs 600 crore in the corresponding quarter of previous fiscal. Operating profit margin during the quarter contracted to 20.1 per cent from 45.6 per cent in the previous year quarter.
Prolonged period of headwinds faced by the non-banking finance companies (NBFC) sector since the end of the second quarter of FY19 and its impact on the borrowings by this segment impacted CARE's operating profit margin.
Capex related borrowings of corporate sector also is not picking up. Further, rating income is a function of availability of adequate information (including audited results) for conclusion of ratings and as such, and can impact the quarterly rating revenues, especially in the first quarter, the company said.
At 11:03 am, CARE Ratings was trading 18 per cent lower at Rs 619 on the BSE, as compared to 1.1 per cent decline in the S&P BSE Sensex. The trading volumes on the counter jumped over 10-fold with a combined 317,683 shares changing hands on the NSE and BSE so far.