ICRA (ICRA) Q4 09/10 earnings summary

Executive summary

• FY2010 standalone profit after tax rose 38% YoY to Rs 5,000.37 lakh; EPS increased to Rs 50.00 from Rs 36.15.

• Consolidated operating income reached Rs 1,623.21 lakh and consolidated PAT was Rs 534.76 lakh; ratings remained the largest business.

• Management viewed ratings prospects positively, supported by recovering economic activity and expected demand for credit and capital-market funding.

Financial highlights

• Standalone operating income increased to Rs 10,616.39 lakh from Rs 8,872.80 lakh; total income rose 26% to Rs 12,794.38 lakh.

• Standalone PBT was Rs 7,411.24 lakh versus Rs 5,265.95 lakh; PAT was Rs 5,000.37 lakh versus Rs 3,615.10 lakh.

• Consolidated operating income was Rs 1,623.21 lakh versus Rs 1,358.20 lakh; consolidated PAT was Rs 534.76 lakh versus Rs 388.92 lakh.

• Standalone total expenditure increased to Rs 5,187.48 lakh from Rs 4,699.84 lakh, while depreciation rose to Rs 195.56 lakh from Rs 177.55 lakh.

Outlook and guidance

• Ratings outlook remained positive; expected asset creation and credit growth were viewed as supportive of ratings demand.

• FY2010-11 demand for funds was expected to remain high, with rising IPO activity and debt demand despite potential interest-rate increases.

• Management expected debt-market issuance to become a more important ratings driver over time, with regulation-led bank-loan ratings less dominant in the medium term.