Shares in rating agency firm CARE Ratings in intra-day trade on Wednesday (November 4, 2020) were locked in 20 percent upper circuit at Rs. 365.20 per share on the BSE after the company declared good set of earnings for July-September quarter.
The company logged an almost four fold rise in its consolidated net profit to Rs. 35.84 crore versus Rs. 9.7 crore in the previous June ended quarter. Net profit though on a year on year basis came in lower. The company's revenue stream also saw a recovery with an over 100% increase to Rs. 75.88 crore during the review period as against Rs. 37.38 crore in Q1FY21.
Also, during the period from July-September, sales at the company saw a traction and rebounded back to pre-Covid levels.
"We are seeing sequential improvement in some of the high frequency monthly economic indicators which are on expected lines as we do expect quarterly GDP growth to improve over Q1 and turn marginally positive in Q4," said Ajay Mahajan, MD & CEO of CARE Ratings.
"The announcement of on-tap TLTROs and the government's additional spending on capex should help to revive private investment and we would be keenly watching whether this will lead to more differentiated issuances in the bond market which is still biased towards the financial sector," he added.