ICRA (ICRA) Q4 08/09 earnings summary

Executive summary

• FY 2008-09 standalone PAT rose 36% YoY to Rs 3,615.10 lakh; rating-services income grew 47%, while consolidated PAT reached Rs 3,889.16 lakh.

• Basel II bank-loan ratings supported growth amid a sharp economic slowdown; financial-market stress weighed on structured finance and consulting activity.

Financial highlights

• Standalone operating income increased 46% to Rs 8,872.80 lakh; total income rose 48% to Rs 10,143.58 lakh and PAT increased from Rs 2,665.86 lakh to Rs 3,615.10 lakh.

• Standalone PBDIT grew 37% to Rs 5,443.74 lakh; total expenses rose 62% to Rs 4,699.84 lakh, including Rs 885.80 lakh investment-value diminution.

• Consolidated operating income was Rs 13,581.95 lakh, up from Rs 9,945.17 lakh; total income reached Rs 14,981.81 lakh and PAT Rs 3,889.16 lakh.

• Consolidated EPS rose to Rs 38.89 from Rs 28.48; standalone basic and diluted EPS were both Rs 36.15 versus Rs 26.66.

Outlook and guidance

• Ratings outlook remained positive; Basel II bank-loan ratings were expected to sustain near-term momentum, with a deeper corporate bond market presenting a longer-term growth opportunity.

• Softer interest rates and improving investment and consumption demand were expected to support funding needs and rating activity in FY 2009-10, subject to recovery in markets and credit conditions.

• Online expected product enhancements, process improvements and productivity gains to support competition and growth; ICTEAS planned further investment in business analytics capabilities.