Key highlights

761 new clients were added in Q2 FY'15, taking the overall client base to 8692.

Total volume of debt rated increased from about Rs 1.8 lakh crore in Q2 FY'14 to about Rs 2.12 lakh crore in Q2 FY'15. Total number of instruments rated stood at 1655

Most lending is happening only in retail, infrastructure yet to pick up in India.

Growth in credit continues to be sluggish with ground reality is yet in a waiting mode. However management expects things to recover slowly from here. Investments should pick up gradually in H2 which should see some debt activities in H2 FY'15

Roughly Bank Loan Ratings constitutes around 50% and rest are others. Once debt market start doing well, debt instrument ratings will go up.

Other income includes profit on sale of investments of around Rs 16 crore.

H2 FY 15 will be even better than H1 FY'15 with improvement in macros expected to occur in H2 FY'15.

Going forward, dividend payout ratio will continue to be healthy

Company is adding employees towards SME ratings, as is confident of this segment to improve going forward, as operating leverage is yet to appear in this segment. SME rating is around 7% of total business and SME business is under investment stage.

Management expects OPM to further improve due to SME ratings and further pick up of debt instruments business.

Arc Ratings which is a JV with Brazil, Portugal, Malaysia and South Africa, is working on Government of India Ratings and will soon announce its ratings and will then further proceed towards other ratings thereafter.