Professional Risk Opinion Date: February 08, 2020

SE/2019-20/079

To,

The General Manager The National Stock Exchange India Ltd.

The Corporate Relation Department Listing Department
Bombay Stock Exchange Limited Exchange Plaza
Phiroza Jeejeebhoy Towers Bandra Kurla Complex
14th Floor, Dalai Street Bandra (East)
Mumbai 400 001 Mumbai 400 051
Scrip Code: 534804_____________ Scrip Code: CARERATING___________

Dear Sir/Madam,

Sub: OUTCOME OF BOARD MEETING HELD ON FRIDAY, FEBRUARY 07, 2020

Please find enclosed herewith the Press Release and Investor Presentation of CARE Ratings
Limited as per the requirement of Regulation 30 and Para A of Part A of Schedule III of the
SEBI (Listing Obligation and Disclosure Requirements) Regulations, 2015.

Kindly take the above on record.

Thanking you,

Yours faithfully,

For CARE Ratings Limite^j^^x

Navin Kumar Jain ^

A-
cd |ND,A £
Company Secretary & fficer

Enel : As above.

CARE Ratings Ltd.

CORPORATE OFFICE: 4 Floor, Godrej Coliseum, Somaiya Hospital Road, A Wing - 1102/ 1103, Kanakia Wall Street, Andheri Kurla Road,
Off Eastern Express Highway, Sion (E), Mumbai - 400 022. Chakala, Andheri (E), Mumbai - 400 093
Tel.:+91-22-6754 3456 . Fax:+91-22-6754 3457 Tel:+91-22-6837 4400
Email: care@careratings.com . www.careratings.com
 Professional Risk Opinion

Registered office: 4th Floor, Godrej Coliseum, Somaiya Hospital Road, Off Eastern Express Highway, Sion (East), Mumbai 400 022

CIN: L67190MH1993PLC071691
Mumbai, 8thFebruary, 2020

Q3 and 9M 2019-20 Results

The Board of Directors of CARE Ratings approved the financial results for the quarter ended
December 2019 in the Board meeting held on Friday, the 7th February, 2020.

Consolidated Financial Results

CARE Ratings'consolidated income from operations for 9M-FY20 was Rs. 177.67 crore compared
with Rs. 229.55 crore in the comparable period previous year. Consolidated total income for the
period ended December 31, 2019 was Rs. 201.70 crore as against Rs. 250.33 crore last year.

Profit after tax moderated to Rs. 67.80 crore compared with Rs. 101.38 crore during this period.

Standalone Financial Results

CARE Ratings’standalone income from operations for 9 months ended December 31 2019 was Rs.
161.44 crore compared with Rs. 215.87 crore in the comparable period previous year. Total income
for 9M-FY20was Rs. 185.55 crore as against Rs. 236.23 crore in the corresponding period in the
previous year.Profit after tax moderated to Rs. 66.55 crore compared with Rs. 100.35crore duringthe
period ended December 31, 2018.

The Board of Directors have recommended interim dividend of Rs. 6/- per share (of Rs. 10/- face
value) for the quarter ended December 31, 2019.

Major factors affecting results

The revenue for 9M-FY20 was lower by Rs. 50.68 crore and PAT was lower by Rs. 33.80 crore
compared with the corresponding period last year. This was mainly due to subdued growth in the
economy which was reflected in lower growth in credit during the first nine months of the year
coupled with higher operating and other expenses.

Operational Data

During 9M-FY20 your company has rated total debt amounting to Rs. 7.35 lakh crore compared with
Rs. 11.46 lakh crore in the corresponding period in the previous year. This comprises Rs. 2.84 lakh
crore in bonds (Rs. 4.10 lakh crore last year), Rs. 2.89 lakh crore (Rs 4.88 lakh crore) bank loans and
Rs. 1.62 lakh crore (Rs 2.48 lakh crore) in short term ratings (including Commercial Paper) during 9M-
FY20.

Economic backdrop

During the first 9 months of the fiscal year, the economy continued to witness low growth owing to
weak consumer demand and subdued investment climate. The liquidity in the banking system,
continued to remain in a surplus position, though the lending activities by the banks were muted on
account of NPA overhang along with subdued demand. The industrial activity in the first 8 months of

1
 dfeiil Ratings
Professional Risk Opinion

the fiscal year remained subdued with the Index of Industrial Production (IIP) growth being as low as
0.7% during April-November 2019 as against the 5% growth witnessed in the corresponding period
last year. The lackluster growth in output across various sectors has led to low growth rate in the
industrial output during this period.

Corporate bond issuances have increased during the first 9 months of the ongoing fiscal year and
were 15% higher at Rs. 4.62 lakh crore compared with Rs. 4.02 lakh crore in the corresponding
period last year. But more than 2/3 were issuances from the financial sector. During 9M FY20, the
incremental bank credit growth over March 2019 was low at 1.8% compared with the 7.7% growth
witnessed during the same period last year. Credit offtake by industry and services contracted by
2.6% during 9M FY20 as against the 4.9% incremental growth in 9M FY19.

'The external environment that is critical for our business continued to be downbeat for the third
successive quarter which is reflected in the flow of funds that can be rated by us. Consistent
weakness in the consumer demand has been one of the factors impacting growth. We are yet to see
the greenshoots this year and it does appear that the economy would do better only in FY21 though
Q4-FY20 should have better macroeconomic numbers compared with 9M-FY20' said Mr T.N. Arun
Kumar, Interim CEO.

Contact:

Mr. T N Arun Kumar, Interim CEO,

022 - 6754 3412

ABOUT US

CARE Ratings is the second largest full service rating Company in India*. CARE Ratings offers a wide range of rating and
grading services across a diverse range of instruments and related obligations covering wide range of sectors. The
Company's list of clients includes banks and other financial institutions, private sector companies, central public sector
undertakings, sub-sovereign entities, small and medium enterprises ("SMEs") and microfinance institutions, among others.
The Company also provides issuer ratings and corporate governance ratings and offers rating of innovative debt
instruments, such as REITs, expected loss (for infra), perpetual bonds etc. CARE Ratings is recognized for being knowledge
based Company and has continued to work towards deepening the base.

The company has a subsidiary CARE (Ratings) Africa Private Limited (CRAF) in Mauritius and CARE Ratings Nepal Limited in
Nepal. The company has two wholly owned subsidiaries in Mumbai, India namely CARE Risk Solutions Private Limited and
CARE Advisory Research & Training Limited. The Company has its registered office in Mumbai, and branches in Ahmedabad,
Bengaluru, Chandigarh, Chennai, Coimbatore, Hyderabad, Jaipur, Kolkata, New Delhi, and Pune.

* In terms of rating income FY19.

2
 CARE Ratings Limited
Investor Presentation - 9MFY20

I'Tolossioiiiil Risk ()|>iiiii>n

Investors Presentation Q3 and 9M FY20
SAFE HARBOR STATEMENT
THIS PRESENTATION AND THE ACCOMPANYING SLIDES (THE "PRESENTATION"), WHICH HAVE BEEN PREPARED BY CREDIT ANALYSIS &
RESEARCH LIMITED (THE "COMPANY"), HAVE BEEN PREPARED SOLELY FOR INFORMATION PURPOSES AND DO NOT CONSTITUTE ANY
OFFER, RECOMMENDATION OR INVITATION TO PURCHASE OR SUBSCRIBE FOR ANY SECURITIES, AND SHALL NOT FORM THE BASIS OR
BE RELIED ON IN CONNECTION WITH ANY CONTRACT OR BINDING COMMITMENT WHATSOEVER. NO OFFERING OF SECURITIES OF
THE COMPANY WILL BE MADE EXCEPT BY MEANS OF A STATUTORY OFFERING DOCUMENT CONTAINING DETAILED INFORMATION
ABOUT THE COMPANY

THIS PRESENTATION HAS BEEN PREPARED BY THE COMPANY BASED ON INFORMATION AND DATA WHICH THE COMPANY CONSIDERS
RELIABLE, BUT THE COMPANY MAKES NO REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, WHATSOEVER, AND NO RELIANCE
SHALL BE PLACED ON, THE TRUTH, ACCURACY, COMPLETENESS, FAIRNESS AND REASONABLENESS OF THE CONTENTS OF THIS
PRESENTATION. THIS PRESENTATION MAY NOT BE ALL INCLUSIVE AND MAY NOT CONTAIN ALL OF THE INFORMATION THAT YOU MAY
CONSIDER MATERIAL. ANY LIABILITY IN RESPECT OF THE CONTENTS OF, OR ANY OMISSION FROM, THIS PRESENTATION IS EXPRESSLY
EXCLUDED.

CERTAIN MATTERS DISCUSSED IN THIS PRESENTATION MAY CONTAIN STATEMENTS REGARDING THE COMPANY'S MARKET
OPPORTUNITY AND BUSINESS PROSPECTS THAT ARE INDIVIDUALLY AND COLLECTIVELY FORWARD-LOOKING STATEMENTS. SUCH
FORWARD-LOOKING STATEMENTS ARE NOT GUARANTEES OF FUTURE PERFORMANCE AND ARE SUBJECT TO KNOWN AND UNKNOWN
RISKS, UNCERTAINTIES AND ASSUMPTIONS THAT ARE DIFFICULT TO PREDICT. THESE RISKS AND UNCERTAINTIES INCLUDE, BUT ARE
NOT LIMITED TO, THE PERFORMANCE OF THE INDIAN ECONOMY AND OF THE ECONOMIES OF VARIOUS INTERNATIONAL MARKETS,
THE PERFORMANCE OF THE RATING INDUSTRY IN INDIA AND WORLD-WIDE, COMPETITION, THE COMPANY'S ABILITY TO
SUCCESSFULLY IMPLEMENT ITS STRATEGY, THE COMPANY'S FUTURE LEVELS OF GROWTH AND EXPANSION, TECHNOLOGICAL
IMPLEMENTATION, CHANGES AND ADVANCEMENTS, CHANGES IN REVENUE, INCOME OR CASH FLOWS, THE COMPANY'S MARKET
PREFERENCES AND ITS EXPOSURE TO MARKET RISKS, AS WELL AS OTHER RISKS. THE COMPANY'S ACTUAL RESULTS, LEVELS OF
ACTIVITY, PERFORMANCE OR ACHIEVEMENTS COULD DIFFER MATERIALLY AND ADVERSELY FROM RESULTS EXPRESSED IN OR IMPLIED
BY THIS PRESENTATION. THE COMPANY ASSUMES NO OBLIGATION TO UPDATE ANY FORWARD-LOOKING INFORMATION CONTAINED
IN THIS PRESENTATION. ANY FORWARD-LOOKING STATEMENTS AND PROJECTIONS MADE BY THIRD PARTIES INCLUDED IN THIS
PRESENTATION ARE NOT ADOPTED BY THE COMPANY AND THE COMPANY IS NOT RESPONSIBLE FOR SUCH THIRD PARTY STATEMENTS
AND PROJECTIONS.

Investors Presentation Q3 and 9M FY20

Contents

Highlights

Financial & Business Performance

MCR/CDQI

Economic Backdrop

dfee Ratings
I’i'ok'ssional Risk ()|tinii>ii
Investors Presentation Q3 and 9M FY20
CARE Ratings Group

CARE Ratings Limited

”1
CARE Risk CARE Advisory CARE Ratings
CARE Ratings
Solutions Research and (Africa)
(Nepal)
Private Training Limited, Private
Limited, 51%
Limited, 100% 100% Limited, 78%

s
I’roirsMunal Risk < )|>inion
Investors Presentation Q3 and 9M FY20
Diversified Business Mix
j Ratings Information Analysis & Grading
■ Manufacturing & Services sector
■ Industry & Customized Research reports
■ Financial sector
■ CARE Industry Risk Metrics (CIRM) reports
■ Infrastructure
■ Grading services
■ Small & Medium Enterprises
■ Training
■ Structured Finance
■ Valuations
■ Sub Sovereign ratings
■ Alternate Inv. Fund, Infra. Dev. Fund
® International expansion
CARE Risk solutions Private Ltd.

■ Setup a rating agency in Mauritius and ■ Risk Solutions for

Nepal. Exploring neighboring countries, o Basel II, Credit risks, Operational risks, Fund
Africa Transfer Pricing, Asset Liability Mgmt., Value
at risk, Capital Adequacy Ratio, IFRS

■
CARE Advisory Research & Training Ltd.
• Advisory Services
• Training Services
• Customized Research

ional Risk ((pinion

Investors Presentation Q3 and 9M FY20
Shareholding Snapshot as on December 31, 2019
Name of Top 20 Shareholders
LIFE INSURANCE CORPORATION OF INDIA+ LIC P & GS FUND 9.85
CRISIL LIMITED 8.90
FRANKLIN TEMPLETON INVESTMENT FUNDS + Mutual fund 8.13
L&T MUTUAL FUND TRUSTEE LIMITED-L&T EMERGING BUSIN 4.80
STICHTING DEPOSITARY APG EMERGING MARKETS EQUITY P 4.55
MORGAN STANLEY ASIA (SINGAPORE) PTE. 4.24
BMO INVESTMENTS II (IRELAND) PUBLIC LIMITED COMPAN 4.02
VANGUARD EMERGING MARKETS STOCK INDEX FUND, A SERI 2.57
PINEBRIDGE GLOBAL FUNDS - PINEBRIDGE INDIA EQUITY 2.31
BAJAJ ALLIANZ LIFE INSURANCE COMPANY LTD. 1.92
RUSSELL INVESTMENTS LIMITED 1.80
BAOBAB GLOBAL FUND LTD 1.71
INDIA CAPITAL FUND LIMITED 1.69
BAJAJ HOLDINGS AND INVESTMENT LTD 1.69
GOVERNMENT PENSION FUND GLOBAL 1.50
WHITE RIVER PARTNERS, L.P. 1.39
INDIA INSIGHT VALUE FUND 1.34
DHANDHO INDIA ZERO FEE FUND, L.P 1.31
TATA STEEL LIMITED 1.20
EMERGING MARKETS CORE EQUITY PORTFOLIO (THE PORTFO 1.14
Total of Top 20 Shareholders 66.09

I'rok'SMonal Risk ()|)imoii

Investors Presentation Q3 and 9M FY20
Contents

Highlights

Financial & Business Performance

MCR/CDQI

Economic Backdrop

I’roli-ssional Risk ()pinion

Investors Presentation Q3 and 9M FY20
Financial Performance

Rs. in Crores
Standalone Consolidated
% Change % Change
Particulars 9MFY20 9MFY19 9MFY20 9MFY19
Revenue from Operations 161.44 215.87 -25.2% 177.67 229.55 -22.6%
Total Expenses 103.49 93.66 10.5% 117.97 106.42 10.9%
Operating Profit 57.95 122.21 -52.6% 59.69 123.13 -51.5%
Other Income 24.12 20.36 18.4% 24.03 20.78 15.7%
Profit Before Tax 82.07 142.58 -42.4% 83.73 143.91 -41.8%
Provision for Tax 15.51 42.23 -63.3% 15.93 42.54 -62.5%
Profit After Tax 66.55 100.35 -33.7% 67.80 101.38 -33.1%

Operating Profit margin (%) 35.9% 56.6% 33.6% 53.6%

Profit Before Tax margin (%) 44.2% 60.4% 41.5% 57.5%
Net Profit margin (%) 35.9% 42.5% 33.6% 40.5%
Basic EPS (Rs. per share) 22.59 34.06 23.04 23.92

Risk ()|>111n>11
Investors Presentation Q3 and 9M FY20
Financial Performance: 9MFY20 (Rs Cr)- Standalone

Total Operating Revenue

250.00 21S.87 Operating Profit
200.00 161.44 150.00 122.21
150.00
100.00
100.00 57.95
50.00
50.00

9M FY19 9M FY20 9M FY19 9M FY20

Total Expenditure PAT

105.00 103.49
150.00
100.00 100.35
93.66 100.00 66.55
95.00
50.00
90.00
85.00
9M FY19 9M FY20 9VI FY19 9M FY20

I’rolfSMOIKlI Risk < MMIWull

Investors Presentation Q3 and 9M FY20
Financial Performance: 9MFY20 - Standalone
Operating Profit Margin (%)
56.61
60.00

40.00
35.90

9MFY20 operating profit margin & PAT

20.00
margin fell due to lower operating

9M FY19 9M FY20 income (due to lower borrowing by the

NBFC sector & muted Capex of the

PAT Margin (%)
44.00 42.48 corporate sector) coupled with higher
42.00
40.00 operating expenses due to increase in
38.00
35.87 employee cost & other expenses
36.00
34.00
32.00
9M FY19 9M FY20

e Ratings
I’l'oU'sMrnial Risk ()|>ininn
Investors Presentation Q3 and 9M FY20
Business Performance (New clients): 9MFY20

7,000
14.00 Volume of Debt Rated (Rs Ik cr) No of Instruments Rated 6,378

6,000 5,547
12.00 11.46

5,000
10.00
3,966
4,000
8.00
,021
3,000
6.00

2,000
4.00

1,000 687
526
84 51 221207

Bank Loan Ratings Short & Longterm Bank Loan Others Total
Short & Medium Long term
Medium term Ratings
term

■ 9MFY19 ■ 9M FY20 9M FY19 B9MFY20

I’l olessional Risk Opinion

Investors Presentation Q3 and 9M FY20
Business Performance (New clients): Q.3 FY20

2,500
Volume of Debt Rated (Rs Ik cr) No of Instruments Rated
3.50 2,103
2,000 1,833
3.00

2.50 1,500 1,330

2.00
1,000
1.50

1.00 500
187 249
0.50 21 13 62 86
:■
0.00 Short & Long term Bank Loan Others Total
Medium term Ratings
Short & Medium Longterm Bank Loan Ratings
term
Q3FY19 ■ Q3 FY20 Q3 FY19 ■ Q3 FY20

dfefi Ratings
I’roli-ssional Risk < tpiuion
Investors Presentation Q3 and 9M FY20
Contents

Highlights

Financial & Business Performance

MCR/CDQI
__I

Economic Backdrop

I’mlrv-imial Risk ()pininn

Investors Presentation Q3 and 9M FY20
Rating Movement
There has been a near sustained moderation in the MCR since the second half of 2018-19 indicative of
the weakening of overall credit quality. The credit quality of the rated entities as measured by CARE
Rating's 'modified credit ratio' (MCR) in the first 9 months of 2019-20 has been the weakest in 6 years.

I’rok'SMonal Risk Opinnm

Investors Presentation Q3 and 9M FY20
CARE Ratings Debt Quality Index (CDQI)
The index fell sharply in June 2019 mainly due to moderation in the liquidity scenario for NBFCs and MFCs resulting in
sharp rating migration. Thereafter, it declined by 0.54 points in the month of September'19 triggered by further
downgrades in NBFC and FIFC segment due to the continuing liquidity stress in the segments making it difficult for
entities to raise finance in a timely manner as also delaying monetisation plans. CDQI declined by 0.36 points to 87.98
in the month of December'19.

Cfelci Ratings
I’roli
Investors Presentation Q3 and 9M FY20
Contents

Highlights

Financial & Business Performance

MCR/CDQI 1

Economic Backdrop

Ratings
I’l'ofi'ssiona! Risk ()|>iniim
Investors Presentation Q3 and 9M FY20
Economic Growth and Industrial Output

GDP growth (%)

9.0
8.1 8.0
8.0 7.7
6.8 7.0
7.0 6.6
5.8
6.0
5.0
5.0 4.5
4.0
3.0
2.0
1.0
0.0
00 00 00 CTi cn CD CD o o
r—I T—I ’t-H t—I CM C\l
>■ >■
>-
LU U_ LI— LL. U_ u_ LI— LL U_
fN ro (N m t-H cm
aaaaaaaaa

• As per first advance estimate, GDP is estimated to Source: MOSPI

grow at 5% in FY20
Source: MOSPI

dfeci Ratings
Professional Risk (Ipinion
Investors Presentation Q3 and 9M FY20
Inflation and Exchange Rate

O')
Rs/$
CT) Oh CT) CT) CT) ^ CT)
I O) rH r-H
rH i r-H
i >~ I rH
i
i
DJD
i
CL 4-J >
i

u
i

TO C = =i dj U O (U
Q. =5
< ^ 13 < lo O ^ Q

67

67.5

68
68.5
69
69.5
70
70.5

71
71.5
72

Source: MOSPI Source: RBI

I’l ok sMon.il Risk ()pinion

Investors Presentation Q3 and 9M FY20
Bank Credit

12.0 Growth in Credit

10.0

8.0

6.0 5.0

% 4.0
1.9
2.0

0.0 ■
-2.0

-4.0 -3.2
Agriculture Industry Services Retail

FY19 (Apr-Dee) ■ FY20 (Apr-Dee)

Source: RBI Source: RBI

s
ional Risk (Jpmion
Investors Presentation Q3 and 9M FY20
Corporate Bond Issuances

Corporate Debt Raised Majority of the corporate bond issuances

5,00,000 are raised by the financial sector (70% share)
4,50,000 i>D
• Banks/term lending (39%), financial
O 00
4,00,000 •sf
O)
services/investment (16%), housing
O
3,50,000 LO
&) finance (15%)
r^ CT)
m
^ 3,00,000
m 3
U. 2,50,000 Infrastructure sector accounted for nearly
</) m
^ 2,00,000 22% of the total corporate bond issuances
1,50,000 • Roads and highways (8% share) and
1,00,000
LT) LD
power generation and supply (6%) are
lo
50,000 00 the dominant industries within
T—I

infrastructure

Public Issue Private Total

Placement
9M FY19 ■9MFY20

Source: SEBI

Ratings
ional Risk ((piniuu
Investors Presentation Q3 and 9M FY20
Commercial Paper

CP Issuances (Rs lakh Cr) • Within the total CP issuances, financial

services/investment had highest share of
25.0 21% followed by oil
exploration/drilling/refineries (16%) and
19.69
20.0 term lending (12%)
17.30
O)

2 15.0 • Some of the other sectors pertained to

u
-C • Housing Finance (9%)
TO

io.o • Telecom (8% share)

</)
cc • Power generation and supply (8%
4.98 share)

■
5.0 4.19
• Textiles (5%)
• Fertilizer (4%)
0.0 • Iron and steel (3%)
Oustanding CPs Issuances
9M FY19 ■ 9M FY20

Note: Outstanding as on 31st Dec.

Source: RBI

c :i tings
Investors Presentation Q3 and 9M FY20
Interest Rate and GSec yields

12.00 Repo Rate (%) & MCLR(%)

11.00

10.00

9.00 n-O-O-CH-Ll
% 8.00

7.00

6.00

5.00

4.00
cricncncncncncncncna'icncn
rH r—I r—\ r-H r—I rH rH t—I *—I t—I t—I r—I
t i i i i i
C X) >• C ■5 DO Q. -{H > U
rt3 QJ fD Q. ro ^j =5 O) O OJ
LO ^ ^ < OO O ^ Q

Repo Rate (%) MCLR (1 year median)

• A new 10 year 6.45% GSec benchmark was issued ,

yield of which was 6.45% as on Oct. 31, 2019.

Ratings
I’roli ssional Risk ()pinion
Investors Presentation Q3 and 9M FY20
Economic Outlook for FY20

CARE Ratings' Expectation

Indicators FY20

GDP growth 5.2%

IIP growth 4%

Bank Credit Growth (% yoy) 8%

CPI inflation 4.5%

10 year benchmark GSec yield 6.5-6.6

I’rolcssioiKil Risk < ipininn

Investors Presentation Q3 and 9M FY20
 Thank You

rroU'ssional Risk (Jpinion

Investors Presentation Q3 and 9M FY20