The Board of Directors of the Company at its meeting held today approved the unaudited financial results of the Company (Standalone and Consolidated) for the quarter ended June 30, 2018. The Board also approved the buyback of its equity shares and the merger of its two wholly-owned subsidiaries.
Standalone Financial Results
For the quarter ended June 30, 2018 the Company's operating income was INR 56.53 crore, as against INR 51.13 crore in the corresponding quarter of the previous financial year, reflecting a growth of 11 %. The growth in operating income was mainly driven by growth in the corporate sector and in structured finance ratings. The other income in the quarter had declined by 22% as compared to the corresponding quarter of the previous financial year, mainly due to higher profits on the sale of certain real estate assets in the corresponding quarter and lower mark-to-market gains on mutual fund investments during the current quarter.
The PBT for the quarter was at INR 31.51 crore, reflecting a de-growth of 9%, against the corresponding quarter of the previous financial year, due to lower other income and higher operating expenses. The company recorded a PAT of INR 22.76 crore for the quarter, lower by 4% against the corresponding quarter.
Consolidated Financial Results
For the quarter ended June 30,2018, the consolidated operating income was INR 78.67 crore, as against INR 69.75 crore in the corresponding quarter of the previous financial year, reflecting a growth of 13%. The PBT for the quarter was higher by 7% at INR 37.12 crore, against an INR 34.66 crore in the corresponding quarter. The company's PAT for the quarter was higher by 12% at INR 25.38 crore, as against INR 22.60 crore in the corresponding quarter.
The outsourcing and information services recorded a revenue growth of 3 1% (excluding export incentive) as against the corresponding quarter, driven by growth in the domestic and global markets and rupee depreciation.
Revenue growth and margins of consulting services were adversely impacted because of the de-emphasis on certain non-profitable segments, following a strategic shift.
Buyback of Equity Shares From Open Market
The Board of Directors of the Company, at its meeting today, subject to approval of the members of the Company, approved the buyback of the Company's fully paid-up equity shares, from the open market through the stock exchange mechanism, for a total amount not exceeding INR 85.40 crore, excluding brokerage, costs, fees, taxes and other transaction charges, at a price not exceeding INR 3,800 per equity share. The buyback is an efficient way of distributing surplus funds to the shareholders and this is unlikely to impair the Company's ability to pursue growth opportunities or meet its cash requirements for its business operations.
Merger of Two Wholly-owned Subsidiaries
The Board has approved the merger of its two wholly-owned subsidiaries, ICRA Online Limited, engaged in outsourcing and information services, and ICRA Management Consulting Services Limited, which is involved in consulting services, subject to requisite approvals. This merger will provide business synergies and operating efficiencies.
Shares of ICRA LTD. was last trading in BSE at Rs.3741 as compared to the previous close of Rs. 3802.2. The total number of shares traded during the day was 135 in over 27 trades.
The stock hit an intraday high of Rs. 3820 and intraday low of 3740. The net turnover during the day was Rs. 507123.