Capitaline

Results 11-Feb-25

Analysis

ICRA

PAT jumps 31%, OPM improves

ICRA has recorded 31% surge in the net profit to Rs 42.03 crore in the quarter ended December 2024 (Q3FY2025). Net sales (including other operating income) of ICRA has increased 5.48% to Rs 120.87 crore. Operating profit margin has jumped from 26.40% to 34.88%, leading to 39.37% rise in operating profit to Rs 42.16 crore. Employee cost decreased from 58.44% to 53.47%. Other expenses fell from 15.16% to 11.65%.

Other income rose 9.78% to Rs 18.85 crore. PBIDT rose 28.66% to Rs 61.01 crore. Provision for interest fell 62.46% to Rs 1.07 crore. PBDT rose 34.49% to Rs 59.94 crore. Provision for depreciation rose 9.11% to Rs 4.19 crore.

Profit before tax grew 36.88% to Rs 55.75 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 13.53 crore, compared to Rs 8.32 crore. Effective tax rate was 24.27% compared to 20.43%.

Minority interest decreased 26.92% to Rs 0.19 crore. Net profit attributable to owners of the company increased 30.73% to Rs 42.03 crore.

Commenting on the results, Ramnath Krishnan, MD and Group CEO, ICRA said: "ICRA continues to demonstrate resilience, with sustained growth in Ratings, whereas the Analytics segment recorded modest growth this quarter, reflecting the evolving market dynamics.

We continue to remain focused on expanding our analytical capabilities, strengthening research offerings, and enhancing client value through data-driven insights. We remain steadfast in delivering high-quality analytics and ratings while adapting to market shifts".

Business highlights

In Q3 FY2025, ICRA reinforced its position as a knowledge powerhouse by hosting key market events across India, covering sectors such as Structured Finance, Specialty Chemicals, Microfinance, Real Estate, and the Automotive segment.

ICRA also organised a media roundtable in Mumbai, sharing insights on emerging credit trends in the Banking and NBFC sectors. Additionally, ICRA conducted 13 webinars, participated in 19 external events as an industry thought leader, and published 147 high-impact research reports spanning 60 sectors to empower stakeholders with reliable insights and industry expertise.

Ratings & ancillary services revenue growth was 9.6% for Q3FY25 and 14.1% for 9MFY25

In Q3 FY2025, bond issuances continued their surge as seen in the previous quarter to grow 35% year-on-year helping the 9M FY2025 growth to land at 16% year-on-year. Bond issuances by the NBFCs saw a sharp growth of 65% year-on-year as bank credit to this segment was curtailed. Banks and corporates too saw a spike in bond issuances supported by softening yields.

Continuing challenges in deposit inflows, mainly in retail deposits, for banks led to a lower bank credit growth in Q3 as well as in 9M FY2025 from the highs seen in the previous two fiscals. The securitisation segment saw strong growth as the NBFCs leaned on this segment due to lower availability of bank funding following the banks` offloading a part of their books to correct their credit-deposit ratio.

Research & Analytics revenue was impacted by lower international order flows but saw strong domestic growth, particularly in debt capital markets and banking. The business strengthened its market position by implementing a market abuse detection solution and expanding ESG data offerings to meet rapidly evolving market and regulatory needs. It remains well-positioned in risk solutions and early warning systems, adapting to growing regulatory requirements, especially in the NBFC sector.

Financial Performance 9MFY2025

Net sales (including other operating income) of ICRA has increased 12.31% to Rs 361.81 crore. Operating profit margin has jumped from 30.71% to 32.78%, leading to 19.87% rise in operating profit to Rs 118.59 crore. Employee cost decreased from 55.91% to 55.27%. Other expenses fell from 13.38% to 11.95%.

Other income rose 10.72% to Rs 56.79 crore. PBIDT rose 16.75% to Rs 175.38 crore. Provision for interest rose 2.30% to Rs 3.56 crore.

PBDT rose 17.09% to Rs 171.82 crore. Provision for depreciation rose 32.33% to Rs 11.91 crore.

Profit before tax grew 16.10% to Rs 159.91 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 44.7 crore, compared to Rs 32.55 crore. Effective tax rate was 27.95% compared to 23.63%.

Minority interest decreased 2.08% to Rs 0.94 crore. Net profit attributable to owners of the company increased 9.63% to Rs 114.27 crore.

ICRA: Consolidated Results
	2412 (3)	2312 (3)	Var %	2412 (9)	2312 (9)	Var %	2403 (12)	2303 (12)	Var %
Sales	120.87	114.59	5	361.81	322.15	12	446.11	403.23	11
OPM %	34.9	26.4		32.8	30.7		33.3	35.4
OP	42.17	30.25	39	118.60	98.92	20	148.76	142.92	4
Other Income	18.85	17.17	10	56.79	51.29	11	74.97	49.55	51
PBIDT	61.02	47.43	29	175.38	150.21	17	223.73	192.47	16
Interest	1.07	2.85	-62	3.56	3.48	2	10.41	1.41	638
PBDT	59.95	44.57	34	171.83	146.73	17	213.32	191.06	12
Depreciation	4.19	3.84	9	11.91	9.00	32	13.46	9.83	37
PBT	55.76	40.74	37	159.91	137.73	16	199.86	181.23	10
Tax	13.54	8.33	63	44.70	32.55	37	47.62	44.50	7
PAT	42.22	32.41	30	115.21	105.18	10	152.24	136.73	11
Minority interest	0.19	0.26	-28	0.94	0.96	-1	1.15	1.49	-23
Profit/Loss of Associate Company	0.00	0.00	-	0.00	0.00	-	0.00	0.00	-
PAT	42.03	32.15	31	114.27	104.23	10	151.09	135.24	12
EPS (Rs)*	174.2	133.3		157.9	144.0		156.6	140.1
*EPS is annualized on latest equity of Rs 9.65 crore, face value of Rs 10 each, Source: Capitaline Corporate Database

ICRA : Consolidated Segment Results
	% of total	2412 (3)	2312 (3)	Var. (%)	% of total	2412 (9)	2312 (9)	Var. (%)	% of total	2403 (12)	2303 (12)	Var. (%)
Segment Revenue
Ratings & Ancillary Services	59.5	72.30	65.95	10	58.4	211.75	185.60	14	57.7	257.57	230.00	12
Research & Analytics	40.5	49.18	48.72	1	41.6	151.02	136.84	10	42.3	189.10	174.12	9
Total Reported Sales	100.0	121.48	114.67	6	100.0	362.77	322.44	13	100.0	446.67	404.12	11
Less: Inter segment revenues		0.60	0.08			0.96	0.29			0.55	0.89
Net Sales	100.00	120.87	114.59	5	100.00	361.81	322.15	12	100.00	446.11	403.23	11
PBIT
Ratings & Ancillary Services	61.5	23.35	11.97	95	59.1	63.04	41.98	50	49.4	67.94	58.61	16
Research & Analytics	38.5	14.62	15.75	-7	40.9	43.65	49.77	-12	50.6	69.64	74.47	-6
Total PBIT	100.0	37.97	27.73	37	100.0	106.69	91.75	16	100.0	137.58	133.08	3
Less : Interest		1.07	2.85	-62		3.56	3.48	2		10.41	1.41	638
Add: Other un-allcoable		18.85	15.85	19		56.78	49.46	15		72.69	49.54	47
Profit Before Tax		55.75	40.73	37		159.91	137.73	16		199.86	181.21	10
Figures in Rs crore, PL: Profit to Loss, LP: Loss to Profit
Source: Capitaline Corporate Database

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