ICRA Ratings Revenue Growth for the Q1 FY25 up by 8.9%
ICRA's Q1 FY25 ratings revenue increased by 8.9% despite challenges from a 35.1% drop in bond issuances and a 39.1% decline in the NBFC sector.
by Damodharan N
Updated Jul 25, 2024
Table of Content
ICRA Limited reported its financial results for the first quarter ending June 30, 2024, on July 23, 2024. The company saw an 8.9% increase in ratings revenue during the quarter. Despite a challenging credit market with a 35.1% year-over-year drop in bond issuances and a significant 39.1% decline in the NBFC sector, ICRA managed to grow its revenue. The slowdown in bank credit growth was counterbalanced by gains in securitisation and bank credit markets.
ICRA's analytics revenue grew by 16.0% in Q1 FY25, boosted by the consolidation of D2K Technologies and a strong performance in risk solutions for banking. The newly launched Customized Research Business and expanded collaborations in the Market Data vertical contributed to this growth.
Source: Here
ICRA Q1 FY25 Results
ICRA Limited announced its financial results for the first quarter ending June 30, 2024. The company reported an 11.8% increase in consolidated revenue from operations, reaching ₹114.8 crore compared to ₹102.7 crore in the same quarter last year. However, the Profit After Tax (PAT) for the quarter decreased to ₹35.9 crore from ₹40.6 crore in the previous year.
Ramnath Krishnan, MD and Group CEO of ICRA Limited, highlighted the company’s strong performance despite challenges from the general elections and uneven monsoon progress. He expressed confidence that new ventures, including ESG ratings and the integration of D2K Technologies, will enhance ICRA’s value and drive sustainable growth.
During Q1 FY25, ICRA published 136 industry reports and hosted nine webinars on specific sectors. The company also co-hosted the "India Credit Conference: Sustaining the Momentum" with Moody's in June 2024, where experts discussed various financial topics.
Looking ahead, ICRA projects GDP growth to be below 6.5% in the first half of FY2025, improving to 7.1-7.2% in the second half, driven by government spending and potential improvements in rural demand if the monsoon season is favorable. For the full fiscal year, ICRA expects GDP and Gross Value Added (GVA) growth rates of 6.8% and 6.5%, respectively.
ICRA
ICRA Limited, established in 1991, is a leading investment information and credit rating agency in India. It was founded by major financial institutions, banks, and financial service companies. ICRA is a public company listed on the Bombay Stock Exchange and the National Stock Exchange, with Moody's Investors Service as its largest shareholder. Today, ICRA and its subsidiaries make up the ICRA Group, providing independent credit ratings and financial information.
ICRA Ratings Revenue Growth for the Q1 FY25 up by 8.9% FAQs
1. What is ICRA's ratings revenue growth for Q1 FY25?
ICRA’s ratings revenue grew by 8.9% in Q1 FY25.
2. When did ICRA announce its Q1 FY25 financial results?
ICRA announced its Q1 FY25 financial results on July 23, 2024.
3. What was ICRA’s consolidated revenue from operations in Q1 FY25?
ICRA’s consolidated revenue from operations was ₹114.8 crore.
4. How much did ICRA’s consolidated revenue increase in Q1 FY25?
The consolidated revenue increased by 11.8% from ₹102.7 crore in the previous year.
5. What was ICRA’s Profit After Tax (PAT) for Q1 FY25?
ICRA’s PAT for Q1 FY25 was ₹35.9 crore.
6. How did ICRA’s PAT in Q1 FY25 compare to the previous year?
PAT decreased from ₹40.6 crore in the previous year.
7. What challenges did ICRA face in Q1 FY25?
ICRA faced challenges from a 35.1% drop in bond issuances and a 39.1% decline in the NBFC sector.
8. How did ICRA overcome the challenges in the credit market?
ICRA managed to grow its revenue by gaining in securitisation and bank credit markets.
9. What was the growth percentage of ICRA’s analytics revenue in Q1 FY25?
ICRA Analytics revenue grew by 16.0%.
10. What factors contributed to the growth in ICRA’s analytics revenue?
The growth was driven by consolidating D2K Technologies and strong performance in risk solutions.
11. What new business did ICRA launch in Q1 FY25?
ICRA launched the Customized Research Business.
12. What events did ICRA host in Q1 FY25?
ICRA hosted nine webinars and co-hosted the "India Credit Conference."
13. What was discussed at the "India Credit Conference" co-hosted by ICRA?
Topics included Macro and Fiscal Outlook, Infrastructure, Corporate, and Sustainability Finance.
14. What is ICRA’s GDP growth projection for the first half of FY2025?
ICRA expects GDP growth to be below 6.5%.
15. What is ICRA’s GDP growth projection for the second half of FY2025?
ICRA expects GDP growth to be 7.1-7.2%.
16. What are ICRA’s full fiscal year growth rate expectations?
ICRA expects GDP growth of 6.8% and GVA growth of 6.5%.
17. How many industry reports did ICRA publish in Q1 FY25?
ICRA published 136 industry reports.
18. What was the main reason for the drop in PAT despite revenue growth?
The drop was due to economic challenges and other external factors.
19. Who is ICRA’s largest shareholder?
Moody's Investors Service is ICRA’s largest shareholder.
20. When was ICRA Limited established?
ICRA was established in 1991.
21. What is the primary role of ICRA Limited?
ICRA provides investment information and credit ratings.
22. Where are ICRA’s shares listed?
ICRA’s shares are listed on the Bombay Stock Exchange and the National Stock Exchange.
23. What did Ramnath Krishnan say about ICRA’s performance?
He highlighted ICRA’s strong performance despite economic challenges and expressed confidence in new ventures.
24. How did the general elections and monsoon affect ICRA’s business?
They caused transient dips in economic activities.
25. What are the new ventures ICRA is focusing on?
ESG ratings and integrating D2K Technologies.
26. What is the nature of ICRA’s new Customized Research Business?
It involves tailored research assignments for clients.
27. What kind of data service collaborations did ICRA expand in Q1 FY25?
ICRA expanded collaborations for valuation services in the Market Data vertical.
28. What was the impact of the consolidation of D2K Technologies on ICRA?
It boosted revenue growth, especially in risk solutions.
29. What significant event did ICRA co-host in June 2024?
The "India Credit Conference: Sustaining the Momentum" with Moody’s.