Icra’s Q2 PAT Climbs 15.39% With Strong Revenue Growth; H1 FY25 Remains Steady
Robust Q2 performance driven by rising bond market, ratings revenue surge, and ESG initiatives
Icra, a prominent credit rating agency, announced a solid performance for Q2 FY25 and H1 FY25, showcasing notable growth across key financial metrics. Profit After Tax (PAT) for Q2 surged by 15.39 per cent year-on-year (y-o-y) to Rs 37.10 crore, compared to Rs 32.15 crore in the same period last year, backed by a strong 20.2 per cent rise in revenue from operations, totalling Rs 126.1 crore.
For the half-year ended 30 September 2024, PAT remained relatively stable at Rs 72.99 crore, a slight increase from Rs 72.77 crore in the previous year. Profit Before Tax (PBT) saw a strong 20.5 per cent increase for Q2 to Rs 57.0 crore, with a 7.4 per cent rise for the half-year period to Rs 104.2 crore.
Sector Growth And Expanding Ratings Business
The company reported a 24.1 per cent growth in ratings revenue for Q2 FY25, and a 16.6 per cent rise for H1 FY25. Bond issuances, mainly from banks and NBFCs, drove much of this growth with a 65 per cent year-on-year surge in Q2. However, bank credit remained sluggish in H1 due to tighter risk weights for NBFC lending, leading NBFCs to focus on bond issuances and securitisation for growth.
Research And Analytics Growth
Icra’s Research and Analytics revenue grew 15.2 per cent in Q2 FY25, and 15.6 per cent for the half-year, bolstered by its acquisition of D2K Technologies and an increased appetite for risk products. To support its research initiatives, Icra hosted 11 webinars and released 162 reports in Q2, and participated in 34 industry events.
Commenting on the results, Ramnath Krishnan, MD and Group CEO, Icra, said, “Icra’s ratings business saw robust growth, supported by a buoyant bond market in Q2 FY25. Our ESG rating launch and continued focus on domestic business growth reflect our commitment to sustainability and market impact.”
Market Outreach And ESG Focus
In September 2024, Icra held its 2nd Annual Market Outreach on Sustainability, spotlighting key industry trends in ESG ratings and sustainable financing. Experts from the renewable energy and electric vehicle sectors participated, underscoring the agency’s focus on sustainable investment.
Economic Outlook
Looking forward, Icra anticipates a slight moderation in GDP growth to around 6.7 per cent in Q2 FY25, with improvement expected in H2, fuelled by government and private capital expenditure and improved rural demand. For FY25, Icra projects a GVA growth rate of 6.8 per cent and GDP growth at 7.0 per cent, with some caution around escalating geopolitical risks.
