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Results
10-May-24
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Analysis
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CARE Ratings
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Healthy performance from rating business
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CARE
Ratings has posted strong 23% increase in the net profit to Rs 23.46 crore in
the quarter ended March 2024 (Q4FY2024). Net sales (including other operating
income) increased 16% to Rs 90.15 crore. Sales of Ratings & Related
Services segment has gone up 10% to Rs 78.69 crore (accounting for 86.9% of
total sales). Sales of Others segment surged 83% to Rs 11.85 crore (accounting
for 13.1% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has increased 9% to Rs 26.36
crore. PBIT of Ratings & Related Services segment rose 15% to Rs 33.74
crore (accounting for 128.0% of total PBIT). PBIT of Others segment posted loss
of Rs 7.38 crore (accounting for -28.0% of total PBIT).
PBIT
margin of Ratings & Related Services segment rose from 41.24% to 42.88%.
Operating
profit margin has eased from 35.2% to 32.2%, leading to moderate 6% rise in
operating profit to Rs 29.03 crore. Other income fell 1% to Rs 10.29 crore.
PBIDT increased 4% to Rs 39.32 crore. Provision for interest declined to Rs 0.46
crore. PBDT rose 5% to Rs 38.86 crore. Provision for depreciation fell 13% to
Rs 2.67 crore. Profit before tax grew 6% to Rs 36.19 crore.
Provision
for tax was expense of Rs 11.64 crore, compared to Rs 13.93 crore. Effective
tax rate was 32.2% compared to 40.9%. Minority interest declined 15% to Rs 0.47
crore. Net profit attributable to owners of the company increased 23% to Rs 24.08
crore.
Commenting
on the results for Q4 & FY24, Mehul Pandya, Managing Director & Group
CEO of CareEdge, said: "The income from operations of our Company rose 14%
in FY24 on a Standalone basis as the initial ratings business continued to
witness strong growth. The EB/TOA margin remained robust at 45% for FY24. Our other
income increased on back of better yield on deposits. Notwithstanding the
increase in employee cost for Talent management, our PAT on a Standalone basis
improved by 15%, while on a Consolidated basis, it was up by 20% in FY24.
The
Consolidated income from operations grew 19%, aided by the increase in the
ratings and non-ratings income. The Consolidated EB/TOA margin for FY24 came in
strong at 34%. We reiterate that our financial performance should be assessed
on an annual basis rather than quarter-on-quarter. Nevertheless, our Company on
a Standalone basis recorded a healthy YoY growth of 10% in income from
operations for Q4 FY24. The Consolidated income from operations also recorded a
YoY growth of 16% for Q4 FY24.
I
am happy to share that The Board of Directors has recommended a final dividend
of Rs. 11/- per share (of Rs. 10/-face value) which will take the total
dividend declared for the year to Rs. 18/- per share.”
Financial Performance
(Y2024)
Net
sales (including other operating income) of CARE Ratings increased 19% to Rs 331.68
crore. Sales of Ratings & Related Services segment has gone up 14% to Rs 298.38
crore (accounting for 89.8% of total sales). Sales of Others segment has gone
up 89% to Rs 33.90 crore (accounting for 10.2% of total sales).
Profit
before interest, tax and other unallocable items (PBIT) has jumped 14% to Rs 101.65
crore. PBIT of Ratings & Related Services segment rose 15% to Rs 125.95 crore
(accounting for 123.9% of total PBIT). PBIT of Others segment witnessed loss of
Rs 24.30 crore (accounting for -23.9% of total PBIT).
PBIT
margin of Ratings & Related Services segment rose from 42.07% to 42.21%.
Operating
profit margin has declined from 35.7% to 33.8%, leading to 7% rise in operating
profit to Rs 112.13 crore. Other income rose 23% to Rs 46.69 crore. PBIDT rose 11%
to Rs 158.82 crore. Provision for interest rose 71% to Rs 1.71 crore. PBDT rose
11% to Rs 157.11 crore. Provision for depreciation eased to Rs 10.48 crore.
Profit
before tax grew 17% to Rs 146.63 crore. Share of profit/loss were nil in both
the periods. Provision for tax was expense of Rs 44.07 crore, compared to Rs 40.29
crore. Effective tax rate was 30.1% compared to 32.0%.
Minority
interest increased 6% to Rs 2.04 crore. Net profit attributable to owners of
the company increased 20% to Rs 100.52 crore.
Care Ratings:
Consolidated Results
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2403 (3)
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2303 (3)
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Var %
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2303 (12)
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2303 (12)
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Var %
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Sales
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90.15
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77.51
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16
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331.68
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278.99
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19
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OPM %
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32.2
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35.2
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33.8
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35.7
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OP
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29.03
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27.32
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6
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112.13
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105.05
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7
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Other Income
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10.29
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10.37
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-1
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46.69
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37.94
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23
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PBDIT
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39.32
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37.68
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4
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158.82
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142.99
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11
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Interest
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0.46
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0.54
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-15
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1.71
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1.00
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71
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PBDT
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38.86
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37.15
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5
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157.11
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141.99
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11
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Depreciation
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2.67
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3.06
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-13
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10.48
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10.53
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0
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PBT
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36.19
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34.09
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6
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146.63
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131.46
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12
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EO
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0.00
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0.00
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-
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0.00
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-5.71
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-
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PBT after EO
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36.19
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34.09
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6
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146.63
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125.75
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17
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Tax
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11.64
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13.93
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-16
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44.07
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40.29
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9
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PAT
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24.55
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20.15
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22
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102.56
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85.46
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20
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Minority interest
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0.47
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0.55
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-15
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2.04
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1.93
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6
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Profit/Loss of
Associate Company
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0.00
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0.00
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-
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0.00
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0.00
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-
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PAT
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24.08
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19.60
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23
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100.52
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83.53
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20
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EPS (Rs)*
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32.3
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26.3
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33.7
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28.0
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*EPS is annualized on
latest equity of Rs 29.8521 crore, face value of Rs 10 each, Source:
Capitaline Corporate Database
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Care Ratings:
Consolidated Segment Results
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% of total
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2403 (3)
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2303 (3)
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Var. (%)
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% of total
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2403 (12)
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2303 (12)
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Var. (%)
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Segment Revenue
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Rating,Research and
other Service
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86.9
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78.69
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71.45
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10
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89.8
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298.38
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261.49
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14
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Consulting Services
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13.1
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11.85
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6.47
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83
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10.2
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33.90
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17.91
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89
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Total Reported Sales
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100.0
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90.54
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77.91
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16
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100.0
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332.28
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279.40
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19
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Less: Inter segment
revenues
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0.40
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0.40
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0.59
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0.41
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Net Sales
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100.00
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90.15
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77.51
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16
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100.00
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331.68
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278.99
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19
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PBIT
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Rating,Research and
other Service
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128.0
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33.74
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29.47
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15
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123.9
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125.95
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110.00
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15
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Consulting Services
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-28.0
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-7.38
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-5.21
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42
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-23.9
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-24.30
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-21.19
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15
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Total PBIT
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100.0
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26.36
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24.26
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9
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100.0
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101.65
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88.81
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14
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Less : Interest
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0.46
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0.54
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-15
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1.71
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1.00
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71
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Add: Other
un-allcoable
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10.29
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10.37
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-1
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46.69
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37.94
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23
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Profit Before Tax
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36.19
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34.09
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6
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146.63
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125.75
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17
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Figures in Rs crore,
PL: Profit to Loss, LP: Loss to Profit
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Source: Capitaline
Corporate Database
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