ICRA - Subsidiaries continue to add to the margin pressure - Emkay

ICRA's Q2FY13 op. revenue broadly inline with exp at Rs624mn, however with lower other income and higher opex, adj. net profit came in significantly below exp at Rs110mn

Rating revenue grew by 2.5%yoy as expected, as poor credit offtake and sluggish bond market activity continue impact business

Slower revenue growth with sharp rise in opex in subsidiary companies taking toll on margins. Blended EBIDTA margin fell to 26% from 37% in Q2FY13

Cut FY13/14 earnings estimates by 11%/12% to factor in lower other income and higher opex. Maintain HOLD with price target of Rs1,300.

Source : Equity Bulls

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