ICRA (ICRA) Q4 11/12 earnings summary

Executive summary

• FY2011-12 standalone total revenue rose 12% to ₹159.10 crore and profit after tax reached ₹50.90 crore; consolidated revenue was ₹228.79 crore and consolidated profit ₹54.01 crore.

• Wider bank-loan rating coverage supported revenue amid weak investment activity, slower credit growth and subdued capital markets.

Financial highlights

• Standalone operating income increased 8% to ₹139.36 crore; other income rose 57% to ₹19.74 crore, lifting total income 12% to ₹159.10 crore.

• Standalone profit before tax was ₹75.73 crore versus ₹68.81 crore; profit after tax was ₹50.90 crore versus ₹44.91 crore.

• Consolidated operating revenue was ₹207.46 crore and total revenue ₹228.79 crore; consolidated PAT reached ₹54.01 crore versus ₹48.11 crore.

• Standalone operating expenses rose 14% to ₹83.37 crore; employee benefits increased 22% to ₹60.57 crore, including ₹12.92 crore ESOP compensation amortisation.

Outlook and guidance

• Long-term ratings outlook remained positive; near-term hardening interest rates and moderating investment activity could constrain growth.

• Bank-loan coverage, debt-market participation by institutional investors and credit-default-swap reforms were viewed as potential drivers of ratings activity.

• Fiscal and current-account deficits, pending policy decisions, crude prices and adverse currency movements could weigh on the operating environment.