CRISIL - Results inline; Ratings drive growth - Emkay

CRISIL's Q1CY12 results were inline with expectations with Adj. revenue of Rs2.27bn and Adj. net profit of Rs537mn.

Rating revenues (adjusted for one time income of Rs73mn), grew by a robust 30% yoy to Rs939mn, aided by strong growth in BLR/ debt issuances/ ratings on securitization transaction.

Research revenues remain flat qoq at Rs1.15bn. However adj for fx translation loss, full time equivalent would have grown by a strong 7-8%.

Strong cash flow generation capabilities of the comp should continue to support the exp valuations. With recent sharp run up in the stock price, rate ACC with PT of Rs1,240.

Source : Equity Bulls

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