Are CARE Ratings latest results good or bad?
CARE Ratings reported strong year-on-year growth for Q2 2025, with net sales up 20.40% and profit after tax rising 24.4%. However, the company's reliance on non-operating income for a significant portion of its profits raises concerns about the sustainability of its core business model.
CARE Ratings has reported its financial results for the quarter ending June 2025, showcasing notable year-on-year growth in key financial metrics. The company achieved net sales of Rs 203.56 crore, reflecting a growth of 20.40% compared to the previous year. Additionally, the profit before tax (PBT) reached Rs 23.74 crore, which is an increase of 27.91% year-on-year. The profit after tax (PAT) also demonstrated a positive trend, amounting to Rs 25.78 crore, marking a rise of 24.4% from the same quarter last year.However, it is important to note that a significant portion of the company's profit before tax, approximately 36.59%, is derived from non-operating income. This reliance on income from non-business activities may raise questions regarding the sustainability of its core business model moving forward.
In terms of evaluation, the company saw an adjustment in its evaluation over the past three months. Overall, while CARE Ratings has demonstrated strong growth in its financial performance, the reliance on non-operating income presents potential challenges for its long-term operational stability.
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