ICRA (ICRA) Q4 10/11 earnings summary

Executive summary

• FY2010-11 operating income rose 22% YoY to Rs 129.31 crore; standalone PAT fell to Rs 44.91 crore from Rs 50.00 crore.

• Consolidated operating income reached Rs 1,930,290 thousand, while net profit after minority interest was Rs 481,103 thousand, versus Rs 534,781 thousand.

Financial highlights

• Standalone total income rose 11% YoY to Rs 141.85 crore; operating income grew 22% to Rs 129.31 crore, while non-operating income declined 42% to Rs 12.54 crore.

• Standalone PBT declined to Rs 68.80 crore from Rs 74.11 crore; PAT fell to Rs 44.91 crore from Rs 50.00 crore.

• Consolidated operating income was Rs 1,930,290 thousand versus Rs 1,623,208 thousand; total income was Rs 2,059,709 thousand versus Rs 1,849,910 thousand.

• Consolidated net profit after minority interest was Rs 481,103 thousand, down from Rs 534,781 thousand; consolidated EPS was Rs 48.11 versus Rs 53.48.

• Non-operating income fell partly because the prior-year Rs 82,167 thousand investment-value reversal did not recur; FY2010-11 also included Rs 75,130 thousand ESOP compensation amortisation.

Outlook and guidance

• Long-term ratings outlook remained positive, while higher interest rates and moderating investment activity could constrain near-term growth.

• Bank-loan rating coverage, debt-market development, Infrastructure Debt Fund activity, guaranteed bond issuance, foreign investor participation and credit default swaps were cited as potential growth drivers.

• IPO grading demand was expected to be buoyant in 2011-12, supported by anticipated fundraising and improving market sentiment.