CARE Ratings, India's leading praise rating agency, on Tuesday, reported an 18 percent refuse 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 consolidate 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 demanding particularly in Q3 as the system confronts a liquidity issue on the NBFC front.
During the October-December period, the company's fixed cost was 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 equivalent nine months of the previous financial year. Profit after tax moderated to Rs 101.38 crore versus Rs 120.35 crore in the same period a year ago.
Comment on the results, Rajesh Mokashi, MD and CEO, said, "The third quarter has been chiefly challenging for the financial sector touching overall borrow activity. On the positive side, we do see the situation normalize following the effective measures taken by the central bank.
"While Q4 macro-economic conditions should be better, we would take a conventional view on incremental enlargement 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 affirmed 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 the company were trading at Rs 939.50 apiece, down 3.14 percent, from the previous close on the BSE at 2:00 pm.
