ICRA Q1 net dips 66%, stock tanks

ICRA shed more than 5% to Rs 1,070 after reporting 66% year-on-year (y-o-y) drop in consolidated net profit at Rs 3.6 crore for the first quarter ended June 2011, as compared to Rs 10.6 crore in the corresponding quarter of previous fiscal.

“Income from operations declined by 6% at Rs 38.7 crore on y-o-y basis", the credit rating agency said in a filing to the stock exchanges.

“Sluggishness in the domestic debt markets and the increasing intensity of competition in the rating domain dented the operating income during the recently concluded quarter. The decline in profit after tax is attributable, in large measure, to the amortization of Rs 4.31 crore as ESOP expenses during Q1FY12," the company said.
 
The stock opened at Rs 1,130 and hit a low of Rs 1,036 on the BSE. Around 2,000 shares have changed hands in morning deals.