CRISIL (CRISIL) Q4 02/03 earnings summary

Executive summary

• FY03 PAT rose 37.04% to Rs 1,792.15 lakh; reported total income increased 3.70%, while operating income excluding the prior-year accounting-policy adjustment grew 11.75%.

• Ratings and advisory strengthened their positions despite weak capital investment and declining primary debt issuance; information revenue faced client outsourcing cuts.

Financial highlights

• Total income was Rs 7,185.60 lakh vs Rs 6,929.46 lakh; PBT was Rs 2,802.15 lakh vs Rs 2,862.26 lakh.

• PAT was Rs 1,792.15 lakh vs Rs 1,307.75 lakh; EPS rose to Rs 28.83 from Rs 21.09.

• Consolidated total income reached Rs 7,624.83 lakh vs Rs 7,105.63 lakh; consolidated PAT was Rs 1,666.95 lakh vs Rs 1,158.72 lakh, with EPS of Rs 26.80 vs Rs 18.69.

• Recommended dividend increased to 100% from 65%.

Outlook and guidance

• Ratings demand expected to remain supported in FY04 by traded debt funding, financial-sector capital needs, reduced sovereign support for state entities and structured-finance growth.

• Advisory revenue grew more than 30% despite consultancy-industry contraction; FY04 outlook was cautiously optimistic.

• Information growth expected from cross-selling, customized work and outsourcing opportunities; CRISIL Risk & Information Solutions expected to reach profitability in FY04 as revenue grew and product development concluded.

• Global Data Services expected faster growth following a dedicated sales force; overseas outsourcing and software sales were prospective opportunities.