Figures for the quarter ended June 30, 2008 do not include figures of Sapphire International Inc., and M-Serve Business Solutions Private Limited as these companies became wholly-owned subsidiaries of their respective holding companies subsequent to first quarter of the previous year.

Performance for the quarter: Q1FY10

For the quarter ended Jun ‘09, the company has posted 31% rise in consolidated Income from operation to Rs 33.18 crore. Strong top line growth was driven largely by rating services. Segment revenue of Rating Services grew by 28% to Rs 20.91 crore and it accounts for 63% of the total revenue. Basel II related Rating contributed significantly to the growth in the Corporate Ratings business during Q1FY10. Besides Rating of debt issuance by existing and new issuers, the Company was also able to add new issuers/borrowers to its list of rating clients during Q1FY10.

The consulting Services contributed 12% to the total revenue with revenue growth of 13% to Rs 3.96 crore. The out-sourcing services grew by 68% to Rs 2.72 crore accounting for 8% of the total income and Information services segment grew by 20% to Rs 0.65 crore accounting for 2% to the total income.

Despite rise in revenues, hike in cost pushed the OPM down by 320 bps to 27.1%. Among the segments apart from Rating and Outsourcing other segments reported negative margins for the quarter. However the operating profit increased by 17% to Rs 8.99 crore. With regard to cost, the staff cost as proportion to sales increased by 50 bps to 48.6% while the administrative expenses were increased by 80 bps to10.8% and other expenses by 190 bps to 13.5%. The other income increased by 23% to Rs 4.21 crore. The depreciation was lower by 3% to Rs 0.90 crore.

Segment profit of rating services was higher by 17% to Rs 11.48 crore and that of Outsourced segment increased by 314% to Rs 1.16 crore, while other segments reported loss for the quarter under consideration. With the reversal of Provision on account of diminution in investments at Rs 6.64 crore, the PBT after provision grew by 86% to Rs 18.94 crore. However with the current tax increasing by 117% to Rs 6.58 crore, the Net profit for the quarter settled at Rs 12.36 crore depicting a growth of 72%.

On standalone basis, the sales for the quarter increased by 27% to Rs 20.91 crore. The OPM for the quarter declined by 140 bps to 45.0% taking the operating profit up by 23% to Rs 9.41 crore. The Net profit for the quarter finally stood at Rs 13.20 crore, up by 74% on y-o-y basis.

Performance for year ended: FY09

For the full year ended Mar'09, ICRA reported 37% increase in income from operation to Rs 135.82 crore. The growth in top line was largely driven by the Rating service business for which the income grew by 47% to Rs 88.52 crore, contributing 65% to the total revenue. The growth in Rating Services Income during fiscal 2008-09 is attributable mainly to the increase in income from Corporate Sector Ratings. Basel II related Rating contributed significantly to the growth in the Corporate Ratings business during the year under review. Besides Rating of debt issuance by existing and new issuers, the Company was also able to add new issuers/borrowers to its list of rating clients during 2008-09.

The OPM for the full year increased by 450 bps to 41.0% taking the operating profit up by 53% to Rs 55.67 crore. The other income for the full year has increased by 78% to Rs 13.99 crore, taking the PBIDT up by 58% to Rs 69.66 crore. The depreciation declined by 4% to Rs 3.64 crore and the Interest cost stood at Rs 0.02 crore. This took the PBT before provisions up by 63% to Rs 66 crore.

However with Provision expenses on account of diminution in investments at Rs 9.19 crore as against nil in the corresponding previous year, the PBT after provision posted a restricted growth of 41% to Rs 56.81 crore. With the tax provision increasing by 50% to Rs 17.92 crore, the Net profit settled at Rs 38.89 crore compared to Rs 28.48 crore in the corresponding previous quarter, depicting a growth of 37%.

On standalone basis, the sales for the full year increased by 46% to Rs 88.73 crore. The OPM for the quarter increased by 470 bps to 57.0% taking the operating profit up by 59% to Rs 50.59 crore. The Net profit for the quarter finally stood at Rs 36.15 crore, up by 36% on y-o-y basis.

The Company changed its Accounting Policy for charging depreciation on Leasehold Improvements in the fourth quarter of the financial year 2008-09, switching over to the Straight Line Method and taking into account the primary period of lease. (Earlier, the practice was to charge depreciation using the Written Down Value Method at the rates of depreciation prescribed under Schedule XIV of the Companies Act, 1956.) As a result of this change, depreciation for the financial year 2008-09 is lower by Rs 28.46 lakh on a standalone basis and by Rs 32.33 lakh on a consolidated basis, and the corresponding profit figures higher by that extent. The impact of the same is reflected in the fourth quarter of the year under review, both on standalone and consolidated bases.

The Book value as on June'09 on consolidated basis stood at Rs 201 per share and on stand alone basis stood at Rs 193 per share.

The promoters share holding as on June '09 stood at 28.51%.

The scrip of ICRA closed at Rs 878 at BSE as on 24 July 2009.