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Showing posts with label CRISIL. Show all posts
Showing posts with label CRISIL. Show all posts
Sunday, February 19, 2012
Friday, October 21, 2011
Wednesday, October 19, 2011
CRISIL Q3 cons net profit down 20%
CRISIL has announced the following unaudited results for the quarter ended September 30, 2011:
Standalone results:
The net profit of the company fell by 31.84% to Rs50.98 crore for the quarter ended September 30, 2011 as compared to Rs74.80 crore for the quarter ended September 30, 2010.
The total income increased by 0.19% to Rs183.05 crore for the quarter ended September 30, 2011from Rs182.71 crore for the quarter ended September 30, 2010.
Consolidated results:
The net profit of the group declined by 20.23% to Rs60.18 crore for the quarter ended September 30, 2011 as compared to Rs75.44 crore for the quarter ended September 30, 2010.
The total income surged by 10.95% to Rs225.30 crore for the quarter ended September 30, 2011from Rs203.06 crore for the quarter ended September 30, 2010.
Wednesday, February 16, 2011
Tuesday, February 15, 2011
Wednesday, January 12, 2011
Thursday, November 18, 2010
Wednesday, October 20, 2010
Sunday, June 14, 2009
CRISIL
Fresh investments can be considered in Credit Rating Information Services of India (CRISIL) stock. CRISIL is the largest credit rating agency in India also engaged in research and advisory services.
The credit rating business offers huge growth potential in India as the corporate debt and fixed income market in India is still in a nascent stage. While demand for rating services (especially bank loan ratings) provides high earnings visibility, CRISIL’s significant market share, zero debt, diversified revenue mix and superior margins (net profit margin of 27 per cent) are the key investment arguments.
At the current market price of Rs 3,265, the stock is trading at a trailing one year price to consolidated earnings multiple of 16.4.
That is at a discount to its lone listed competitor ICRA (20.2 times). CRISIL is essentially a defensive stock despite its mid-cap status. A low beta (0.47) led to its under-performance in the bull market, but the stock fared better than the market in the 2008 meltdown.
Business
CRISIL claims a more than 50 per cent market share in bank loan ratings and a 70 per cent market penetration in debt ratings. The company’s net profit grew at 59 per cent compounded annual rate over the three years to 2008, while revenues grew at 42 per cent during the same period.
For the year 2008, 44 per cent of CRISIL’s revenues came from the research business, 37 per cent from ratings and the advisory business contributed to 19 per cent of the revenues.
In recent years, the contribution from the research business has steadily risen, from 13 per cent in March, 2005 to 44 per cent in December, 2008. However, ratings contributed 48 per cent in the latest March quarter.
After net profit growth of 67 per cent, on consolidated operations in the calendar year 2008, growth moderated to a modest 12 per cent for the quarter ended March 2009.
Lower revenue growth (3.6 per cent year-on-year), operating loss in its advisory business (Rs 1.4 crore loss against 1.36 crore profit last year) and discontinuation of revenues from the Gas Strategies group which CRISIL divested in December 2008, were triggers.
Operating margins moderated from 37 per cent to 36 per cent, even as the ratings business continued to grow at a strong pace (32 per cent for the quarter ended March) during the quarter.
Going forward, the ratings business may contribute more to the revenues, with potential to lift the overall margin profile.
Over the next few quarters, growth in bank loan ratings (BLR) (all bank loans above Rs 10 crore should be rated by the end of FY10) and SME ratings may contribute to earnings.
Any incremental loans originating from this year may also have to be rated, which may support BLR growth.
Rating income from securitisation may start flowing as the demand for structured finance products increases post-revival.
A Rs 2.02 lakh crore Infrastructure investment is estimated to be required in the current Five Year Plan (2007-12). Even if this is funded through a debt-equity of 75:25; it offers immense scope for debt fund raising and thus, ratings.
Other rating opportunities include banks’ capital raising of over Rs 5 lakh crore to meet the minimum capital adequacy norm of 12 per cent.
The international business of CRISIL’s rating is also progressing well primarily due to S&P’s outsourcing to CRISIL.
While the research and advisory businesses have been vulnerable to the meltdown in equities until last quarter, the recent buoyancy in equities may perk up prospects for these divisions.
Despite the slowdown in domestic and global equity markets, IREVNA, CRISIL’s research arm, has managed to acquire more clients during the March quarter and Crisil Research, domestic research arm which provides EIC research, has managed to retain its clients.
IPO gradings, also part of CRISIL Research, may also contribute to the top-line if the expected level of primary market activity does materialise, due to divestments and private fund raising.
For the currently loss-making advisory business, infrastructure advisory may see some revival, given that the uncertainties pertaining to elections are over and that capital expenditure is expected to be back on track.
CRISIL Risk Solution, a part of advisory services, may see demand as banks and other financial institutions plan to strengthen their risk management framework ahead of Basel II.
Employee expenses form a chunk of operating expenses (40 per cent of revenues) for CRISIL. CRISIL increased headcount by 11 per cent last year anticipating higher demand for Bank Loan rating and other businesses. Employee expenses may moderate, going forward, due to lower pay hikes, as attrition levels moderate.
Risk
Though there are early signs of financial market revival worldwide, the business environment for International Research and Advisory business remains relatively uncertain. If the recent equity market revival is not sustained, both margins and client retention may pose a challenge.
via BL
Tuesday, October 28, 2008
Monday, September 29, 2008
Sunday, February 10, 2008
IPO Grading - Rural Electrification
CRISIL has assigned a CRISIL IPO Grade "3/5" (pronounced "three on five") to the proposed initial public offer of Rural Electrification Corporation Limited (REC). This grade indicates that the fundamentals of the issue are average in relation to the other listed equity securities in India. However, this grade is not an opinion on whether the issue price is appropriate in relation to the issue fundamentals. The grade is not a recommendation to buy / sell or hold the graded instrument, the graded instrument's future market price or its suitability for a particular investor.
The grading reflects the Indian government's majority stake in REC and its developmental role in the government's plans for the power sector in India, especially the non-urban centres. REC's continuing role as an instrument of government policy and the consequent government support translates into significant advantages for REC as a borrower of funds viz the ability to raise bonds with tax benefits to the investors. CRISIL believes that REC will continue to discharge its developmental role over the medium term and shall display moderately strong business performance.
Notwithstanding the advantages on the liability side, REC's mandate requires it be one of the key lenders to state government power utilities, which have had a troubled credit history. Though REC is planning to increase its lending to the private sector, CRISIL believes that lending to state government utilities would continue to constitute a majority of REC's asset book over the medium term.
The company's profitability could come under pressure in the future as the share of market borrowings in REC's funding mix increases and the company begins to follow the RBI's prudential norms for NPA provisioning. REC will also need to considerably strengthen its internal control systems and loan pricing mechanisms to support the significant increase in business planned by the company. REC's business operations are susceptible to the effects of frequent top management changes as is the case with many other government run entities. REC's shareholders remain vulnerable to the possibility of REC's business operations being used by the government more as a tool for public policy than an engine for profit maximization.
About the company and the issue
REC is a public sector non-banking finance company (NBFC). REC operates under the administrative control of the Ministry of Power (MoP) and is wholly-owned by the Government of India (GoI). Established in 1969 with the sole objective of financing rural electrification schemes in the country, it services its clients -through a network of 17 project offices spread across India.
The company's schemes are primarily aimed at extending and improving the supply of electricity by providing adequate funds for transmission and distribution projects, especially in rural areas. However, over a period of time REC's mandate evolved, permitting it to finance all segments of the power sector in the country. In line with its overall objective of assisting the government's rural electrification strategy, REC also acts as the nodal agency for disbursing grants provided under the Rajiv Gandhi Grameen Vidyutikaran Yojana (RGGVY). The company enters into a Memorandum of Understanding with MoP, which outlines its yearly performance targets and the commitments from the government.
For 2006-07, the company's fund-based income and net profits were Rs 28.3 billion and Rs 7.7 billion, respectively. The operating income of the company has grown at a CAGR of 11.4 per cent over the past 5 years, while PAT has grown at a CAGR of 14.5 per cent in the same period.
REC aims to raise Rs 14 billion to Rs 16 billion by this proposed public issue of 156,120,000 equity shares.
About CRISIL IPO Grading
CRISIL IPO (Initial Public Offering) Grading is an opinion on the fundamentals of the graded issue that reflects CRISIL's independence and expertise. This opinion is expressed as a relative assessment in relation to other listed equity securities in India. The assessment is based on a grading exercise carried out by industry specialists from CRISIL Research. A CRISIL IPO Grade 5/5 indicates strong fundamentals and a CRISIL IPO Grade 1/5 indicates poor fundamentals. CRISIL IPO Grading reflects its assessment of the graded company's equity fundamentals as distinct from an assessment of debt fundamentals. A CRISIL IPO Grade should not be construed to mean a comment on the price of the graded security nor is it a recommendation to invest or not to invest in the graded security.
Sunday, December 09, 2007
CRISIL IPO grade 4/5 for OnMobile Global
Proposed public issue of 10,900,545 equity shares of face value Rs 10 targeted at an issue size in the range of Rs 3,500-4,500 million
CRISIL has assigned a CRISIL IPO Grade "4/5" (pronounced "four on five") to the proposed initial public offer of OnMobile Global Ltd. (OGL). This grade indicates that the fundamentals of the issue are above average relative to other listed equity securities in India.
The grading reflects OGL's position as the largest player in the mobile value-added services (VAS) market in India, and its strong presence in the voice portal and ring back tone (RBT) segments of the VAS market. The grading also reflects OGL's ability to leverage on the unique voice recognition capability of its platform as telecom operators in India expand coverage into rural areas, and its ability to offer customer contact products to goods and services companies by virtue of having a voice channel relationship with almost all telecom operators. The grading also factors the management's strong understanding of market dynamics, as reflected in OGL's consistent track record in product innovation, and pro-activeness in setting up a corporate governance system in the company, as indicated by the appointment of independent directors over a year ago. The grading is tempered by the fact that OGL has low bargaining power with its customers i.e. telecom operators, as it does not brand its products and depends on the operators to take its products to the market. The grading also reflects the anticipated change in OGL's revenue profile, as it opens up its proprietary platform to third parties for applications development. This will cause the business mix to move from the current content cum platform mix to more of the latter.
About the company
OGL is the largest mobile VAS provider in the Indian market. The company was promoted by two first generation entrepreneurs - Mr Arvind Rao, and Mr Chandramouli Janakiraman. The company was originally incorporated as Onscan Technologies India Pvt Ltd in September 2000 by its promoter OnMobile Systems Inc (OMSI). OMSI itself was an incubated start-up of Infosys Technologies Ltd, incorporated under the Delaware General Corporation Law in December 1999.
At the core of OGL's offering to telecom operators is a platform named MMP 2500 - a combination of standard hardware and OGL software - which is technology and handset neutral. Leveraging on this platform, OGL provides a range of services such as ringtones, information, RBT, and m-commerce to telecom subscribers. Currently, the only way to develop applications on the MMP 2500 platform is proprietary with OGL. The company, over the next few months, proposes to throw open the platform to third parties for putting their own applications.
CRISIL IPO grade 4/5 for Persistent Systems Ltd
Proposed public issue of 4,974,836 equity shares of face value Rs 10 at a targeted price of Rs 375 per share
CRISIL has assigned a CRISIL IPO Grade '4/5' (pronounced 'four on five') to the proposed public offer of Persistent Systems Ltd (PSL). This grade indicates that the fundamentals of the issue are above average, in relation to other listed equity securities in India.
The grading reflects the company's strong position in the outsourced product development (OPD) space by virtue of its ability to provide large scale services in specific parts of the software product development life cycle, such as software development, testing and support, and provide end-to-end product development services on a relatively smaller scale. The former is used by global software companies like Microsoft, Agilent, Covad, etc, while the latter is used by small and medium-sized software product companies who do not have the scale to set up captive operations in India. This has given the company a diverse customer base. The grading also reflects the strong corporate governance architecture in the company, in part due to the presence of eminent independent directors on the company's board for the past six years. The grading is tempered by the fact that the margin compression that the company has seen over the last three years is likely to continue in view of currency movements and wage inflation, as well as increased competition from IT Services companies such as Wipro and TCS, as a consequence of a likely slowdown in their traditional revenue streams. The possible withdrawal of tax concessions would also adversely impact the company's return on equity after 2008-09.
About the company
PSL, promoted by first generation entrepreneurs - Dr. Anand Deshpande and his father Mr. S. P. Deshpande, was incorporated in 1990. The company provides offshore software product development services to its customers, majority of whom are independent software vendors (ISVs). It provides services at all stages of the product development life cycle - product conceptualisation, design, development, testing and support. The company has around 190 customers, of which the top 10 customers account for around 47 per cent of its revenues. As of October 5, 2007, PSL employed around 3,700 people.
PSL focuses exclusively on the OPD market. By providing services to mid-sized and small ISVs, the company has been able to get access to the venture capital community. The company continues to use the venture capital community to garner business within the small ISVs space.
The company's offshore development centres are located in Pune, Nagpur, Bangalore, Goa and Hyderabad. The company owns most of its development centres. It currently owns over 5 lakh square feet of office space with a capacity to seat approximately 3,800 people. PSL plans to use its IPO proceeds to construct two new development centres - one in Pune and the other in Nagpur, with a capacity to seat 3,000 and 1,200 employees, respectively at an estimated cost of Rs 1,516 million.
CRISIL IPO grade 3/5 for KNR Constructions
Public issue of 7,874,570 equity shares of face value Rs 10 targeting an issue size in the range of Rs 1,500-Rs 1,750 million.
CRISIL has assigned a CRISIL IPO Grade '3/5' (pronounced 'three on five') to the proposed initial public offer of KNR Constructions Ltd (KNRCL). This grade indicates that the fundamentals of the issue are average, in relation to other listed equity securities in India.
The grading reflects KNRCL's strong track record of project execution in both roads construction and operations and maintenance (O&M). The company has executed many projects as part of the NHAI's NHDP program and has had a 7-year relationship with Patel Engineering as a joint venture partner. The KNR-Patel JV has won 10 road construction projects so far. These include two BOT annuity projects as a part of NHDP Phase II, the combined value of which is Rs 9.6 billion. As of September 2007, KNRCL's order book stood at Rs 16.25 billion, of which the roads sector constituted 89 per cent. The grading is constrained by the relatively underdeveloped state of the company's operating system, which in turn, could constrain its ability to augment the size of its operations. The grading also reflects the uncertainties associated with company's plans to diversify into the power generation and real estate sectors.
About the company
KNRCL is engaged in the business of providing engineering, procurement and construction services in the transportation sector, namely, roads and highways, irrigation and urban water infrastructure management. Roads and highways is the key business of operation, forming 89 per cent of the company's order book as on September 30, 2007. The company has been awarded various projects by both NHAI and state governments.
KNR Constructions Ltd (KNRCL) was incorporated as a public limited company on July 11, 1995. It was promoted by Mr K N Reddy who started as a contractor for small works. KNRCL was primarily a road operation and maintenance company that ventured into road construction 8 years ago and is now diversifying into irrigation and urban sanitation projects. In 2000, KNRCL formed a 50:50 joint venture with Patel Engineering. Since then, the joint venture has bagged several large projects, including two BOT Annuity projects awarded by the NHAI in 2006 and 2007. Projects bagged through joint ventures currently form 74 per cent of the company's total order book.
For the year ended March 31, 2007, KNRCL reported net profits of Rs 198.8 million and turnover of Rs 2,591 million, as compared with net profits of Rs 153.7 million and turnover of Rs 1,261 million in 2005-06.
Tuesday, May 15, 2007
Wednesday, May 02, 2007
Wednesday, April 25, 2007
Wednesday, April 18, 2007
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