CRISIL (CRISIL) Q4 99/00 earnings summary

Executive summary

• Total income was Rs 4,033.06 lacs, broadly flat YoY; PBT declined while PAT increased, supported by lower tax expense and a large investment-sale gain.

• Performance was supported by growth in research and advisory services, new information products, and expansion into real estate ratings and online services.

Financial highlights

• Operating income was Rs 3,397.79 lacs versus Rs 3,637.42 lacs; total income was Rs 4,033.06 lacs versus Rs 4,021.12 lacs.

• Profit before depreciation and tax was Rs 2,216.47 lacs versus Rs 2,495.02 lacs; PBT was Rs 1,922.63 lacs versus Rs 2,083.57 lacs.

• PAT rose to Rs 1,291.63 lacs from Rs 1,250.31 lacs; tax provision fell to Rs 631.00 lacs from Rs 833.26 lacs.

• Other income included Rs 348.47 lacs profit on investment sales; other income totaled Rs 635.27 lacs versus Rs 383.70 lacs.

Outlook and guidance

• Infrastructure ratings activity is expected to strengthen as investment prospects improve; telecom migration to revenue sharing and anticipated debt issues may drive rating demand.

• Corporate rating demand is expected to benefit from higher working-capital needs as commodity cycles rise; power-sector investment could materially increase ratings activity when projects proceed.

• The website business was planned for transfer to a subsidiary, expected to be fully operational in Q2 of the following year, with a revenue-driven finance portal strategy.

• CRISERVICE expected further bank subscriptions as credit-risk management needs grow; potential Standard & Poor's projects were identified for near-term finalisation.