There is a seasonality to the earnings of Care Ratings. So, two quarters are lacklustre and the other two aren’t. This has always been true, for the most part. Crisil is not strictly comparable since they have a data dissemination business that is around 40 percent of their top line. In the case of Care, the current decline started immediately after the quarterly results and has been exacerbated by the fact that they got kicked out of the Nifty 500 benchmark.
The management seems to be very careless about investor communications. Sometimes, they have a post results earnings call and sometimes they don’t have one. That sends the wrong signal and indicates poor corporate governance. They should either not have an earnings call at all, or they should have one irrespective of the quarterly results. The current policy of a random call does more harm than not having any calls. It doesn’t show transparency on the part of the management. They should ‘care’ about their investors (no pun intended). I expected a change after the new guys took over. Still waiting for that to happen.
The next quarter should be better than expectations.
(Disclosure: Long)
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