ICRA Q1 PAT declines 11% YoY to Rs 35 cr

The rating agency's net profit tumbled 11.88% to Rs 35.51 crore in Q1 FY25 as against with Rs 40.30 crore posted in Q1 FY24.

ICRAs revenue from operartions stood at Rs 114.81 crore during the quarter, registering a growth of 11.78% as against with Rs 102.71 crore posted in the corresponding quarter previous year.

Profit before tax (PBT) for the quarter was at Rs 47.20 crore, down by 5.11% as against Rs 49.74 crore in the same period last year.

During the quarter, ratings revenue up 8.9% year on year. In Q1 FY25, the credit market was muted with a sharp dip of 35.1% YoY in bond issuances with the NBFC segment seeing a sharp dip of 39.1% YoY on a high base of corresponding quarter of the previous year. Tight liquidity and slow deposit growth had some impact on the bank credit growth though it continued to grow on a high base of last year.

 

ICRA's revenue growth reflects these trends as the headwinds in the bonds segment were offset by growth in securitisation and bank credit.

In Q1 FY25, analytics revenue increased by 16% year on year. Analytics revenue was driven by growth across all businesses. The revenue growth was also supported by the impact of consolidation of D2K technologies, which showed a healthy performance on the back of a growing market for risk solutions in banking.

The credit rating firm expects the gross domestic product (GDP) growth to print below 6.5% in the first half of this fiscal, before improving to 7.1% - 7.2% in H2 FY2025, aided by back-ended Government capex, a likely pick-up in private capex, and improved rural demand if the rest of the monsoon season turns out to be favourable. Overall, ICRA expects the gross value added (GVA) and GDP growth at 6.5% and 6.8%, respectively, for FY2025.

On standalone basis, the companys net profit stood at Rs 31.31 crore in Q1 FY25, registering a growth of 4.64% year on year. Revenue from operations was at Rs 63.20 crore in Q1 FY25, up 8.6% as against with Rs 58.16 crore posted in Q1 FY24.

Ramnath Krishnan, MD, & group CEO, ICRA, said, "ICRA's businesses showed strong resilience and grew in the first quarter despite a transient dip in the economic activities due to general elections and uneven progress of the monsoon. As we embark on our new business on ESG ratings and integrate the recently acquired D2K Technologies, we remain confident that these initiatives will enhance our value proposition and drive sustainable growth."

ICRA is one of the leading credit rating agencies in India, which offers, through its subsidiaries, rating services in Nepal and Sri Lanka. It also offers outsourcing, information and consulting services through its subsidiaries.

Shares of ICRA shed 0.77% to currently trade at Rs 5,743.60 on the BSE.

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