CARE Ratings, India's leading credit rating agency, on Tuesday reported a 18 per cent decline in its consolidated net profit at Rs 30.74 crore for the three month ended December 31, 2018, due to liquidity issue on the NBFC front.
"The rating agency had posted consolidated net profit of Rs 37.49 crore in the same quarter last year," CARE Ratings said in a filing to the Bombay Stock Exchange.
The company's total income stood at Rs 81.67 crore during the December quarter as against Rs 82.67 crore in the same quarter last year.
The company said that the first nine months of the year were quite challenging especially in Q3 as the system confronted a liquidity issue on the NBFC front.
During the October-December period, the company's expenses were Rs 37.58 crore as against Rs 32.24 crore in the same quarter last year.
For the nine months ended Dec 31 2018, the company's consolidated total income was Rs 250.33 crores as against Rs 251.41 crore in the corresponding nine months of previous financial year. Profit after tax moderated to Rs 101.38 crore versus Rs 120.35 crore in the same period a year ago.
Commenting on the results, Rajesh Mokashi, MD and CEO, said, "The third quarter has been particularly challenging for the financial sector affecting overall borrowing activity. On the positive side we do see the situation normalizing following the effective measures taken by the central bank.
"While Q4 macro-economic conditions should be better, we would take a conservative view on incremental growth in credit as well as debt issuances with the market still taking a wait and watch stance till the run up to the Elections," Mokashi added.
The board of directors has also declared third interim dividend of Rs 6 per share (of Rs 10 face value) for the quarter ended December 31, 2018.
Following the earnings report, shares of company were trading at Rs 939.50 apiece, down 3.14 per cent, from previous close on the BSE at 2:00 pm.
Edited by Chitranjan Kumar