The Board of Directors of ICRA Limited (“ the company” or “ICRA”) at its meeting held today, approved the unaudited financial results of the company (standalone and consolidated) for the third quarter and nine months ended December 31, 2021.

Standalone Financial Results

For the quarter ended December 31, 2021, the company’s operating income was Rs. 48.7 crore, as against Rs. 46.9 crore in the corresponding quarter of the previous financial year, showing a growth of 3.8%. Growth in the Company’s ratings revenue during the quarter was achieved mainly due to traction in fresh business. During this quarter, bond issuances saw a growth over the corresponding quarter of the previous financial year supported by issues from Banks and NBFCs. The bank credit to large industries however continued to be tepid as a pickup in economic activity got weighed down by supply-side disruptions.

Other income was at Rs. 7.2 crore, lower by 26.6% during the quarter on a y-o-y basis, due to a lower interest rate environment. The company has diversified its investment portfolio by investing in debt oriented mutual fund schemes for earning better post-tax returns and incorporating deposits of highly rated financial institutions.

The employees benefit expenses during the current quarter were lower by 11.1% on a yo-y basis mainly due to attrition and consequent reduction in variable pay provision. Other expenses were higher by 18.9% on a y-o-y basis mainly due to higher bad debts & provisions, recruitment costs, other office and administrative overheads etc.

The PBT for the quarter was at Rs. 21.7 crore as against Rs. 20.4 crore y-o-y basis, higher by 6.2%. The PAT for the quarter was at Rs. 16.5 crore as against Rs. 15.4 crore y-o-y basis, higher by 7.3% due to higher revenue and lower overall expenses.

For the nine months ended on December 31, 2021, ICRA’s standalone revenue from operation was Rs. 142.4 crores, compared to Rs. 132.8 crore, higher by 7.2%. The PBT and PAT were at Rs. 66.9 crore and Rs. 54.5 crore, respectively, as compared to Rs. 49.6 crore and Rs. 36.7 crore. The PBT and PAT were higher by 34.9% and 48.7%, respectively, as compared to the corresponding period of the previous financial year, due to higher revenue growth, lower expenses growth and dividend from a subsidiary company.

Consolidated Financial Results

For the quarter ended December 31, 2021, the consolidated operating income was at Rs. 86.6 crore, against Rs. 77.3 crore on a y-o-y basis, reflecting a growth of 11.9%. The Other income was lower by 21.1%, over the corresponding quarter of the previous financial year. Consolidated PBT was at Rs. 41.3 crore, higher by 26.8%, and PAT was at Rs. 31.1 crore, higher by 27.2% on a y-o-y basis.

Ratings, research, and other services segment, including foreign subsidiaries, has grown by 3.7% on a y-o-y basis. Outsourced and information services segment grew by 30.8% due to increase in business from existing and new clients, whereas Consulting services de-grew by 5% due to challenges in the external environment and de-focus on certain unprofitable segments of our business.

For the nine months ended on December 31, 2021, ICRA’s consolidated revenue from operation was Rs.249.1 crore, compared to Rs. 219.0 crore, higher by 13.8%. The other income was lower by 8.5%, over the corresponding period of the previous financial year. The PBT and PAT were at Rs. 105.5 crore and Rs. 79.8 crore, respectively, as compared to Rs. 81.5 crore and Rs. 60.2 crore, respectively. The PBT was higher by 29.5% and the PAT was higher by 32.6%, as compared to the corresponding period of the previous financial year.