ICRA (ICRA) Q4 07/08 earnings summary

Executive summary

• FY08 standalone PAT rose 65% YoY to Rs 266.29m; EPS increased to Rs 26.63 from Rs 18.23. Consolidated PAT reached Rs 285.10m vs Rs 199.93m.

• Rating services drove standalone growth, supported by Basel II-related demand and stronger issuance activity; consulting and technology subsidiaries invested in capability and geographic expansion.

Financial highlights

• Standalone operating income rose 53% YoY to Rs 606.96m; total income increased 47% to Rs 686.33m.

• Standalone PBDIT increased to Rs 396.73m from Rs 238.76m; PBT was Rs 378.59m vs Rs 222.31m, and PAT was Rs 266.29m vs Rs 161.00m.

• Consolidated operating income was Rs 994.52m vs Rs 706.08m; total income was Rs 1,073.30m vs Rs 766.09m, and PAT was Rs 285.10m vs Rs 199.93m.

• Standalone Q4 operating income increased 66% YoY to Rs 174m; total income rose 61% to Rs 198m.

Outlook and guidance

• Ratings outlook remained positive; expected drivers included economic and bank-credit growth, Basel II implementation, mandatory IPO grading, and longer-term domestic debt-market development.

• Consulting expansion into new geographies, products and practices was expected to support scalability; technology analytics planned further investment in business analytics and market development.

• Online's newly launched ICRA Mpower platform and MFI Portfolio Diagnostics were expected to broaden future subscriptions and advisory-product reach.