Rating agency ICRA Limited
(ICRA) reported better than expected numbers for Q1FY19. Consolidated revenues were up 13% yoy (down 5% qoq) at Rs79cr, better than the consensus estimate of Rs72cr. A sharp growth in employee costs was offset by lower operating expenses (as % of sales) resulting in EBITDA growth of 14% yoy (decline of 8% qoq) to Rs28cr. EBITDA margin expanded 41bps yoy to 35.8%. EBITDA marginally surpassed the consensus estimate of Rs26cr. Against an EBITDA growth of 14% yoy, consolidated PAT growth was limited to 12% yoy (8% qoq lower) due to lower other income. Consolidated PAT at Rs25cr came in line with the consensus estimate.
Revenue growth was led by rating services and outsourced services, which contributed 73% and 21%, respectively, to consolidated revenues. Rating service revenue was up 11% yoy (down 3% qoq), while outsourced service revenue was up 38% yoy (down 5% qoq). Revenue growth for these segments was driven by rupee depreciation.
The third segment, consulting services, which contributed only 6% to consolidated revenues, saw revenue decline of 15% yoy (15% qoq).
The Board of Directors of ICRA approved a buyback of Rs85.40cr at a price of Rs3,800 per share.
ICRA Ltd is currently trading at Rs3,650 down by Rs90.15 or 2.41% from its previous closing of Rs3,740.15 on the BSE. The scrip opened at Rs3,800 and has touched a high and low of Rs4,000 and Rs3,564.15, respectively. So far, 41,235 (NSE+BSE) shares were traded on the counter. The current market cap of the company is Rs3,703.98cr.