ICRA Q1 FY2025 results Update:
Consolidated revenue from operations for the first quarter ended June 30, 2024, rose by 11.8% to Rs. 114.8 crore, compared to Rs. 102.7 crore in the same quarter of the previous year. The Profit After Tax (PAT) for the quarter was Rs. 35.9 crore, down from Rs. 40.6 crore in the corresponding quarter last year.
Commenting on the results, Mr. Ramnath Krishnan, MD and Group CEO of ICRA Limited, stated: “ICRA’s businesses demonstrated strong resilience and growth in the first quarter despite a temporary slowdown in economic activities due to general elections and inconsistent monsoon progress. As we launch our new ESG ratings business and integrate the recently acquired D2K Technologies, we remain confident that these initiatives will enhance our value proposition and drive sustainable growth.”
In Q1 FY2025, ICRA published 136 detailed industry reports and hosted nine webinars focusing on specific sectors. ICRA representatives participated as panelists, keynote speakers, and thought leaders in 18 industry events.
In June 2024, ICRA and Moody’s co-hosted the “India Credit Conference: Sustaining the Momentum” in Mumbai. During the event, experts from Moody’s, ICRA, and various industries engaged in panel discussions on topics such as Macro and Fiscal Outlook, Infrastructure, Corporate, and Sustainability Finance. The conference was attended by a diverse audience, including industry delegates, thought leaders, financial institution representatives, and media professionals.
We anticipate that GDP growth will fall below 6.5% in the first half of this fiscal year before improving to 7.1-7.2% in H2 FY2025, supported by increased government capital expenditure, a likely rise in private capital expenditure, and improved rural demand if the remainder of the monsoon season is favorable. Overall, ICRA expects Gross Value Added (GVA) and GDP growth of 6.5% and 6.8%, respectively, for FY2025.
Ratings Revenue Growth for the Quarter: Up 8.9%
In Q1 FY2025, the credit market was subdued with a sharp 35.1% year-on-year decline in bond issuances, with the NBFC segment experiencing a significant drop of 39.1% year-on-year compared to the high base of the corresponding quarter of the previous year (Q1 FY2024). Tight liquidity and slow deposit growth somewhat impacted bank credit growth, although it continued to grow from a high base last year. Commercial Paper outstanding grew sequentially, indicating higher working capital requirements by corporations. The structured finance market found support as NBFCs faced restricted funding from banks, which also sold pools of assets to compensate for sluggish deposit growth. ICRA’s revenue growth reflects these trends, as the challenges in the bond segment were offset by growth in securitization and bank credit.
Analytics Revenue Growth for the Quarter: Up 16.0%
ICRA Analytics revenue in Q1 FY2025 was driven by growth across all business areas. Revenue growth was also supported by the consolidation of D2K Technologies, which performed well due to the growing market for risk solutions in banking. IAL’s newly launched Customized Research Business secured prominent assignments during the quarter, while in the Market Data vertical, collaborations with leading global data service providers for valuation services saw significant expansion.
