Revenue growth was driven by acquisition of D2K Technologies and increased market appetite for risk products, solutions and collaborations with global data providers.
FinTech BizNews Service
Mumbai, 28 October, 2024: ICRA reported robust financial results for the second quarter and half-year ended September 30, 2024, demonstrating a strong performance across key financial metrics. The company's profit after tax (PAT) surged by 15.39% year-over-year to Rs 37.10 crore in Q2FY25, compared to Rs 32.15 crore in Q2FY24. Revenue from operations increased by 20.2% to Rs 126.1 crore in Q2FY25, up from Rs 104.9 crore in the same period last year.
For the half-year period, ICRA maintained a relatively stable PAT of Rs 72.99 crore, compared to Rs 72.77 crore in the same period last year.
ICRA's profit before tax (PBT) demonstrated substantial growth, rising 20.5% to Rs 57.0 crore for the second quarter and 7.4% to Rs 104.2 crore for the half-year, compared to Rs 47.3 crore and Rs 97.0 crore, respectively, in the corresponding period last year.
Commenting on the results, Mr. Ramnath Krishnan, MD, and Group CEO, ICRA Limited, said: "ICRA's ratings businesses showed strong growth supported by a buoyant bond market in Q2 FY2025. ICRA announced its first ESG rating in the quarter and we are very excited for the opportunity this space provides us to work towards a sustainable future. Research & Analytics segment growth was robust in line with our focus on growing the domestic business and acquisition of D2K Technologies.”
Ratings revenue growth for the quarter up by 24.1%; Half-year up by 16.6%
In Q2 FY2025, bond issuances surged 65% year-on-year, driven by Bank and NBFC issuances, bringing H1 FY2025 growth to a modest 5%. Despite industry demand in Q2 FY2025, overall bank credit remained sluggish in H1 FY2025, with NBFC credit constrained by higher risk weights. The NBFCs fuelled their growth through bond issuances and securitisation. Ongoing deposit mobilisation challenges may limit banks' credit growth and keep loans costlier than bonds till the situation normalises.
Research & Analytics revenue growth for the quarter up by 15.2%; Half-year up by 15.6%
Revenue growth was driven by acquisition of D2K Technologies and increased market appetite for risk products, solutions and collaborations with global data providers. The global business continues to show tepid growth as clients gear up for automation and efficiencies.
In Q2 FY2025, ICRA demonstrated its commitment to high-impact research, thought leadership, and industry collaboration through targeted outreach initiatives. It hosted 11 webinars, participated in 34 key industry events, and published 162 in-depth research reports, reinforcing its commitment to delivering valuable insights and credit analysis.
In September 2024, ICRA held its 2nd Annual Market Outreach on Sustainability in New Delhi, where experts from the Renewable Energy, Electric Vehicle industries and ICRA discussed key trends and challenges, including ESG ratings and sustainable financing. The event attracted a diverse audience of industry leaders, financial institutions, and media professionals.
ICRA expect the Gross Domestic Product (GDP) growth to ease slightly in Q2 FY2025 from 6.7% in Q1 FY2025, before improving to 7.2-7.3% in H2 FY2025, aided by back-ended Government capex, a likely pick-up in private capex, and improved rural demand amid some escalation in geopolitical risks. At present, ICRA expects the Gross Value Added (GVA) and GDP growth at 6.8% and 7.0%, respectively, for FY2025
