CRISIL (CRISIL) Q4 96/97 earnings summary

Executive summary

• FY97 revenue growth was 23% despite a difficult rating market; profit after tax was Rs 76.42m versus Rs 75.71m in FY96.

• New rating products and expanded CRIS research and advisory activity were strategic responses to market conditions.

Financial highlights

• Income from operations was Rs 238.45m versus Rs 182.93m in FY96; total income was Rs 266.27m versus Rs 216.77m.

• Profit before tax was Rs 127.08m versus Rs 120.21m; depreciation was Rs 43.59m versus Rs 26.96m.

• Profit after tax was Rs 76.42m versus Rs 75.71m; tax provision was Rs 50.66m versus Rs 44.50m.

• Proposed dividend was Rs 3.00 per share versus Rs 2.70; Rs 18.60m was appropriated to dividend and Rs 57.80m to general reserve.

Outlook and guidance

• Debt-fund ratings were expected to gain significant business as government regulations for the industry liberalised; bank-loan ratings had latent demand and potential users had expressed interest.

• FY98 advisory initiatives include reforms and restructuring, BOOT road projects, urban infrastructure and state-level disinvestment; major assignments on hand include an LNG project and private industrial parks.

• Research initiatives include wider dissemination and joint services with Standard & Poor's Financial Information Services for Indian equity-market information needs.