Standalone net profit was higher by 46% to Rs 12.08 crore over Income of Rs 28.89 crore, up 66%.

ICRA formerly known as Investment Information and Credit Rating Agency of India – is one of the recognized credit rating agencies in India with a wide portfolio of products and services.

Performance for the quarter: Q4FY09

For the quarter ended Mar'09, the company has posted 50% rise in Income from operation to Rs 43.32 crore. Strong top line growth was driven largely by rating services. Segment revenue of Rating Services grew by 67% to Rs 28.89 crore and it accounts for 67% of the total revenue. The consulting Services contributed 11% to the total revenue but de-grew by 18% to Rs 4.79 crore. While the out-sourcing services grew by 97% to Rs 2.72 crore accounting for 6% of the total income and Information services segment grew by 48% to Rs 1.30 crore accounting for 3% to the total income.

OPM expanded by 480 bps to 45.1%. Sharp expansion in operating margin is largely on account of healthy topline growth. With regard to cost, the staff cost as proportion to sales increased by 360 bps to 50.9% while the administrative expenses were lower by 10 bps to 6.8% and other expenses by 120 bps to 14.9%. Expansion in margin together with higher sales facilitated 68% jump in operating profit at Rs 19.53 crore. The other income increased by 42% to Rs 3.57 crore. The depreciation was lower by 34% to Rs 0.72 crore.

Segment profit of rating services was higher by 77% to Rs 20.13 crore (or 96% of total PBIT). Also the segment posted sharp rise in margin up by 410 bps to 69.7%. Segment profit of Information increased to Rs 0.42 crore from meager Rs 0.01 crore in the corresponding previous year; and that of Outsourced segment has increased by 517% to Rs 1.11 crore. While the professional segment profit declined by 50% to Rs 0.09 crore, consulting segment made a loss of Rs 0.80 crore compared to profit of Rs 1.13 crore a year ago.

The PBT increased by 72% to Rs 22.38 crore. However with Provision on account of diminution in investments at Rs 3.39 crore, the PBT after provision posted a restricted growth of 46% to Rs 18.99 crore. With the tax provision increasing by 59% to Rs 6.25 crore, the Net profit for the quarter settled at Rs 12.74 crore compared to Rs 9.12 crore in the corresponding previous quarter, depicting a growth of 40%.

On standalone basis, the sales for the quarter increased by 66% to Rs 28.89 crore. The OPM for the quarter increased by 560 bps to 62.5% taking the operating profit up by 82% to Rs 18.07 crore. The Net profit for the quarter finally stood at Rs 12.08 crore, up by 46% 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.

Other Information

During the year under review, ICRA Techno Analytics Limited acquired 2,50,000 Equity Shares (with a face value of Rs. 10 each) of Axiom Technologies Limited, which constituted the latter's 100% Paid up Equity Share Capital. Also, ICRA Techno Analytics Inc., a wholly-owned subsidiary of ICRA Techno Analytics Limited, acquired 1,500 Equity Shares (with a face value of US$0.6667 each) of Sapphire International Inc. Further, during the year, ICRA Online Limited acquired additional 25,000 Equity Shares (with a face value of Rs. 10 each) of M-Serve Business Solutions Private Limited, following which the latter became a wholly-owned subsidiary of ICRA Online Limited

The Board has recommended for approval of the shareholders at the forthcoming Annual General Meeting, payment of dividend of Rs. 7 per Equity Share and a Special Dividend of Rs. 5 per Equity Share (previous year Rs. 5 per Equity Share and a Special Dividend of Rs. 5 per Equity Share) for the financial year ended March 31, 2009.

The scrip of ICRA closed at Rs 690 at BSE as on 18^th May 2009.