ICRA - Q3FY12 Result Update - Emkay

Reco: ACCUMULATE
CMP: Rs 946
Target Price: Rs 1,100

Stellar performance, Upgrade to ACCUMULATE

- ICRA's Q3FY11 stellar results with revenue at Rs542mn (vs our est. Rs497mn) and adj net profit at Rs170mn (vs our est. Rs112mn)

- Traction continues in rating business with revenues at Rs369mn up 23% yoy (5% qoq). EBIDTA margins too came in healthy at 52%. Performance at other businesses came flat

- Lower professional expenses aided EBIDTA margins as they expanded 405bps qoq. Cost pressures continue to build up on the employee costs

- Consecutive quarters of growth in rating business comes in as +ve. Raise EPS estimates by 25/%14% each for FY12/13E. Upgrade to ACCUMULATE with target price of Rs1,100.

Source : Equity Bulls

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