Consolidated Performance

Performance for quarter ended June 08

The company has posted 28% rise in the topline to Rs 25.42 crore. Rating Services segment grew by 34% and contributed 64% of the total revenue. The consulting Services grew by 26% contributing 14% of the total revenues. The out sourcing services grew by 12% and put up 6% of the total. Finally the Information services segment de grew by 2% and contributed 2% to the total. With the fall in the personnel expenses, by 310 bps to 35.6%, OPM rose by 160 bps to 30.6% and led Operating Profit to rise by 35% to Rs 7.79 crore. The other income rose by 128% adding PBIDT stand at Rs 11.21 crore (up by 54%). With marginal rise in interest cost to Rs 0.01 crore and rise in provision for depreciation by 17% to Rs 0.93 crore led, PBT picked up 58% to Rs 10.28 crore.

At the PBIT level, Rating services segment margins improved by 118 bps to 60.3% and contributed 103% of the total. This growth is primarily attributable to the increase in income from corporate sector ratings. Basel II related rating contributed significantly to the growth in the corporate ratings business during quarter under review. The consulting services segment margins (loss) at PBIT level improved from (Rs 0.59 crore) in the quarter ended June FY 08 to (Rs 0.29 crore) in the current quarter. The information services segment went in to red. This is partly attributed due to change in policy by recognizing Licence fee at 60% up front and balancing spread over the contract period in company’s one of the subsidiary ICRA online Limited. If the policy has been not changed, the segment fee would be higher by 0.20 crore and the Profit after tax would be up by 0.14 crore. Further, outsourced services margins fell by 360 bps to 23.9% and professional services grew by 29% and contributed 1% of the total PBIT.

Going further, as the effective tax rate fell by 280 bps to 29.5%, Net Profit was lifted up by 65% to Rs 7.25 crore.

Performance for year ended Mar 08

In the consolidated performance for the year ended Mar 08, top line looked lucrative with a growth of 41% to Rs 99.45 crore. This growth was attributed mainly due to growth of 55% in Rating services, 39% growth in information services, 37% in out sourced services, 20% and 21% growth in consulting and professional services. Operating Profit rose by 51% to Rs 36.34 crore on the back of healthy step up of 240 bps in OPM. The growth in OPM was attributed mainly due to the fall in all the expenses heads. How ever, other income rose by 31% and directed PBIDT up by 47% to Rs 44.22 crore. The interest cost was marginal at Rs 9 thousand as compared to Rs 0.05 crore in the corresponding previous year and depreciation rose by 32%.

At PBIT level, rating services grew by 250 bps to 64.1% and contributed 91% of the total. Consulting services de grew by 44% to Rs 2.02 crore and contributed only 5% of the total PBIT. The margins at this level fell by 1260 bps to 11.2%. In out sourced services segment, margins at PBIT level fell by 1120 bps to 18.8% and finally PBIT margins of professional services segment de grew by 850 bps to 6.0%. Nevertheless, with increase in taxation by 66%, bottom line was driven to Rs 28.51 crore (up by 43%).

Standalone Performance

Performance for quarter ended June 08

The top line for the quarter ended June 08, has clocked 34% to Rs 16.42 crore on the back of healthy rise in OPM by 260 bps to 46.4%. The fall in personal expense by 310 bps to 35.6% of the sales, was the main reason for the improvement of OPM. Translating the rise in OPM, Operating Profit was up by 42% to Rs 7.62 crore. A whooping increase in other income by 94% led PBIDT to climb up by 55% to Rs 10.90 crore. With nil interest cost (In this quarter as well as in the corresponding previous quarter) and 23% rise in depreciation cost made PBT stand up by 57% to Rs 10.42 crore. Finally, the dip in effective tax rate by 260 bps steered Net Profit to enhance by 62% to Rs 7.61 crore.

Performance for year ended Mar 08

For the year ended Mar 08, Income from Operation improved by 53% to Rs 60.70 crore. The whooping rise in OPM by 980 bps to 52.3% boosted the growth till the bottom line. Operating Profit was up by 88% to Rs 16.90 crore. Further, interest cost rose to Rs 0.01 crore and depreciation swell by 13% to Rs 1.81 crore, leading PBT up by 70% to Rs 37.86 crore. How ever, interest cost grew by 83% and confined Net profit to rise by 65% to Rs 26.63 crore.

Other information:

• ICRA and ING Vysya Bank have recently signed a MoU, under which the company has to assign bank loan ratings to the bank’s borrowers under the standardized approach of RBI's new capital adequacy framework for Basel-II.
• ICRA Techno Analysts, a subsidiary of ICRA has acquired 89,796 equity shares (includes 100% paid up equity capital) of Rs 10 each from Axiom Technology in the month of June 08.
• The scrip is trading at Rs 674.80 as on July 30, 08.