ICRA Limited · NSE:ICRA
ICRA — H1 FY2015 Earnings Presentation
14 slides from ICRA's earnings presentation, November 2014
Slide 1: ICRA Limited Analysts Presentation, H1 2014-15
ICRA Limited Analysts Presentation, H1 2014-15 November 2014
Slide 2: Performance Review: ICRA Limited
Performance Review: ICRA Limited
Slide 3: Rating Business: Performance Drivers Update
Rating Business: Performance Drivers Update • Early signs of pick-up in economic activity, though not broad based • Pick up in Debt Markets & CP issuance with easing of yields. - Debt Market issuance up by ~18% y-o-y during H1 • Slowdown in systemic H1 Bank Credit growth ~11%. • Moderate improvement
Slide 4: ICRA - Standalone Financials
ICRA - Standalone Financials Revenues (Rs. lakh) FY14 FY15 Gr % FY14 FY15 Gr % H1 H1 Q2 Q2 Operating Income 7,075 8,151 15% 3,863 4,394 14% Other Income 1,321 1,960 48% 391 722 85% Total Income 8,396 10,111 20% 4,254 5,116 20% Personnel Expenses 3,309 3,601 9% 1,711 1,819 6% Administrative Expenses
Slide 5: ICRA: Accounting Policy and Prior Period Adjustments
ICRA: Accounting Policy and Prior Period Adjustments • Changes in Accounting Policy covering – Revenue Recognition: The Company adjusted its revenue recognition policy to record a proportion of initial rating fees over the 11 months subsequent to the month in which the rating was awarded. Surveillan
Slide 6: Performance Review: ICRA Group
Performance Review: ICRA Group
Slide 7: ICRA Group: H1FY15 Financial Highlights
ICRA Group: H1FY15 Financial Highlights • H1FY15 Consolidated Group Operating Income grew by 14% (PY: 13%) • Non Operating Income up by 31% primarily due to maturity of FMP investments. • Consolidated Group Net Profit down 24% (PY: 46% growth) attributed mainly to the accounting policy changes and b
Slide 8: Group ICRA - Consolidated Financials
Group ICRA - Consolidated Financials Revenues (Rs. lakh) FY14 FY15 Gr % FY14 FY15 Gr % H1 H1 Q2 Q2 Ratings 7,128 8,241 16% 3,885 4,435 14% Consultancy 1,169 1,303 11% 648 677 4% Outsourced and Inform. Services 1,279 1,520 19% 671 799 19% IT related (Sales & Professional) 3,270 3,520 8% 1,798 1,766 -
Slide 9: Group ICRA - Segment-wise contribution
Group ICRA - Segment-wise contribution Particulars FY14 FY15 Gr % H1 H1 Segment-wise Profits (PBDIT) (Rs. Lakh) Ratings 2,913 3,506 20% Consultancy (83) 118 242% Outsourced and Inform. Services 292 385 32% IT related (Sales & Professional) 547 300 -45% Total Segmental Profits 3,669 4,309 17% Segment
Slide 10: Group ICRA - Segment-wise contribution
Group ICRA - Segment-wise contribution Details FY14 FY15 H1 H1 Revenue Contribution Ratings 55% 57% Consultancy 9% 9% Outsourced and Inform. Services 10% 10% IT related (Sales & Professional) 25% 24% Total Operating Income 100% 100% Segment-wise PBDIT contribution Ratings 79% 81% Consultancy -2% 3%
Slide 11: ICRA Group: Business Update (1)
ICRA Group: Business Update (1) Advisory Services • Revenue up by 11% in H1FY15 [PY revenue growth (-)2%] − Macro-economic conditions still sluggish; business uncertainty still curbing clients’ spending on - consulting, although situation better than past few quarters back − Pricing pressure in cons
Slide 12: ICRA Group: Business Update (2)
ICRA Group: Business Update (2) Outsourcing & Information Services • Revenue grew 19% in H1FY15 compared to 21% in H1FY14 • Margins improved from 23% to 25% – Operating efficiency and higher-value projects primarily responsible for these gains • Challenge – To expand global client base • Outlook – M
Slide 13: ICRA Group: Business Update (3)
ICRA Group: Business Update (3) IT Software Services (Consolidated) • Operating Revenue increased 8% in H1FY15 (PY: 23%) – Rise in average dollar conversion rate from Rs. 60.18 to Rs. 61.86 contributed ~3% to growth – Growth attributable mainly to new projects from existing customers besides additio
Slide 14: Disclaimer
Disclaimer This Analyst Presentation may contain certain forward-looking statements (including expectations and plans) that may be identified by words, phrases, or expressions such as “expected”, “likely”, “will”, “would”, “continue”, “intend to”, “in future”, “opportunities” or their variations. Th