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Results
24-May-24
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Analysis
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ICRA
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Revenue growth and margin improves
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ICRA
has recorded 22% jump in the net profit to Rs 46.87 crore in the quarter ended
March 2024 (Q4FY2024). Net sales (including other operating income) of ICRA has
increased 13.64% to Rs 123.96 crore. Sales of Rating, Research and other
Service segment has gone up 13.59% to Rs 71.97 crore (accounting for 57.94% of
total sales). Sales of Consulting Services segment has gone up 317.77% to Rs
8.92 crore (accounting for 7.18% of total sales). Sales of knowledge services
segment has gone down 1.68% to Rs 38.64 crore (accounting for 31.10% of total
sales). Sales of market services segment has gone up 2.50% to Rs 4.70 crore
(accounting for 3.78% of total sales). Inter-segment sales came down from Rs
0.30 crore to Rs 0.26 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 29.83% to Rs
45.83 crore. PBIT of Rating, Research and other Service segment rose 41.12% to
Rs 25.96 crore (accounting for 56.64% of total PBIT). PBIT of Consulting
Services segment rose 1,905.39% to Rs 1.64 crore (accounting for 3.57% of total
PBIT). PBIT of knowledge services segment rose 8.78% to Rs 18.02 crore
(accounting for 39.32% of total PBIT). PBIT of market services segment fell
16.54% to Rs 0.22 crore (accounting for 0.47% of total PBIT).
PBIT
margin of Rating, Research and other Service segment rose from 29.03% to
36.07%. PBIT margin of Consulting Services segment rose from 3.82% to 18.35%.
PBIT margin of knowledge services segment rose from 42.16% to 46.64%. PBIT margin
of market services segment fell from 5.66% to 4.61%. Overall PBIT margin rose
from 32.27% to 36.89%.
Operating
profit margin has jumped from 34.86% to 40.21%, leading to 31.08% rise in
operating profit to Rs 49.85 crore. Employee cost decreased from 50.39% to
48.60%. Other expenses fell from 14.75% to 11.19%.
Other
income surged 48.84% to Rs 23.68 crore. PBIDT rose 36.32% to Rs 73.53 crore.
Provision for interest rose 2000% to Rs 6.93 crore. Loan funds declined from Rs
13.03 crore as of 31 March 2023 to Rs 12.68 crore as of 31 March 2024. Sundry
debtors were higher at Rs 53.01 crore as of 31 March 2024 compared to Rs 38.05
crore as of 31 March 2023. Cash and bank balance declined from Rs 241.50 crore
as of 31 March 2023 to Rs 155.54 crore as of 31 March 2024. Investments rose to
Rs 813.44 crore as of 31 March 2024 from Rs 688.51 crore as of 31 March 2023.
PBDT
rose 24.23% to Rs 66.6 crore. Provision for depreciation rose 63.74% to Rs 4.47
crore. Fixed assets increased to Rs 62.04 crore as of 31 March 2024 from Rs
47.22 crore as of 31 March 2023. Intangible assets increased from Rs 1.23 crore
to Rs 30.19 crore.
Profit
before tax grew 22.11% to Rs 62.13 crore. Share of profit/loss were nil in both
the periods. Provision for tax was expense of Rs 15.07 crore, compared to Rs
12.25 crore. Effective tax rate was 24.26% compared to 24.08%.
Minority
interest decreased 26.92% to Rs 0.19 crore. Net profit attributable to owners
of the company increased 22.15% to Rs 46.87 crore.
Promoters’
stake was 51.87% as of 31 March 2024, compared to 51.87% as of 31 March 2023.
The
Board of Directors recommended a final dividend of Rs 40 per equity share of
the face value of Rs 10 each. In addition, the Board recommended a special
dividend of Rs 60 per equity share. The total dividend recommended for FY2024
is Rs 100 per equity share compared with Rs 130 per equity share (including
special dividend of Rs 90 per equity share) for the previous year. The overall
dividend pay-out for the year, including the special dividend, is Rs 96.5
crore, compared to Rs 125.5 crore in the previous year.
Business highlights
Ratings segment
In Q4
FY2024, bond issuances grew 15.6% as yields moderated during the quarter
compared with the volatility seen in the preceding two quarters.
Issuances
grew across all segments as they benefitted from lower yields with the yoy
bonds growth at 17.2% for FY2024.
Bank
credit continued its growth trajectory in Q4 FY2024 as the outstanding grew by
16.3% yoy in FY2024.
Both
bond issuances and bank credit recorded a strong growth for the second
successive year as the domestic credit market continued to benefit from the
lower prevailing rates compared with the global scenario.
The
securitisation volumes saw strong growth in FY2024 driven by a steady demand
for credit from the NBFCs and the HFCs. The increase in volumes was supported
by both existing large originators, who securitised higher volumes during the
year, and new originators.
ICRA’s
Ratings’ revenue benefitted from the growth in both the bank loan as well as
bond segments and its strong presence in the securitisation segment.
ICRA was involved in
several novel ratings such as the first in-city warehouse to be rated in the
country, first InvIT in the education infrastructure space to be rated in the
country, first rating assignment by a Credit Rating Agency for a leveraged
Alternate Investment Fund, securitisation transaction of a NBFC, where the pool
receivables were offered as security for an overseas bond transaction.
Analytics
segment
ICRA Analytics revenue growth in
Q4FY2024 was driven by banking and risk business, coupled with the impact of
consolidation of D2K from Q3 FY2024.
In the Market Data vertical, the
journey of tying up key partnership arrangements with leading global data
service providers for valuation services continued to gain traction.
D2K acquisition is expected to bring
in synergies and drive growth in the banking and risk business.
In the current year, ICRA and ICRA
Analytics entered into an agreement for share of common expenses. Consequently,
ICRA Ratingsyearly segmental
margins include 1.9% positive impact of such recharge, whereas ICRA Analytics
segmental margins had an adverse impact of 2.6%.
ICRA continued its
thought leader position while delivering its timely views and opinions on
topical themes and regulatory developments. ICRA published 622 research reports
covering 65 sectors during the year.
Commenting on the results, Ramnath Krishnan, MD, and Group CEO, ICRA
Limited, said: "ICRA`s ratings
delivered a strong revenue growth as bond issuances, bank credit and
securitisation continued their healthy growth trajectory. ICRA analytics growth
was driven by our focus on growing our core banking and risk business though
innovative solutions and the recent acquisition of D2K.
We are excited to announce that Pragati Development
Consulting Services Limited (PDCSL), a wholly owned subsidiary of ICRA, has
received the SEBI’s approval for registration as a Category-I ESG Rating
Provider (ERP). We recognise environmental, social, and governance (ESG) as a
core growth area and are committed to integrating ESG principles into our
operations and services.”
Financial
Performance FY2024
Net sales (including other operating
income) of ICRA has increased 10.63% to Rs 446.11 crore. Sales of Rating,
Research and other Service segment has gone up 11.99% to Rs 257.57 crore
(accounting for 57.66% of total sales). Sales of Consulting Services segment
has gone up 185.98% to Rs 16.42 crore (accounting for 3.68% of total sales).
Sales of Knowledge Service segment has gone up 3.01% to Rs 154.64 crore
(accounting for 34.62% of total sales). Sales of segment has gone down 1.23% to
Rs 18.04 crore (accounting for 4.04% of total sales). Inter-segment sales came
down from Rs 0.89 crore to Rs 0.55 crore.
Profit
before interest, tax and other unallocable items (PBIT) has jumped 3.38% to Rs
137.58 crore. PBIT of Rating, Research and other Service segment rose 15.92% to
Rs 67.94 crore (accounting for 49.38% of total PBIT). PBIT of Consulting
Services segment fell 51.84% to Rs -3.52 crore (accounting for -2.56% of total
PBIT). PBIT of Knowledge Service segment fell 3.56% to Rs 72.13 crore
(accounting for 52.43% of total PBIT). PBIT of market services segment fell
48.72% to Rs 1.03 crore (accounting for 0.75% of total PBIT).
PBIT
margin of Rating, Research and other Service segment rose from 25.48% to
26.38%. PBIT margin of Consulting Services segment rose from negative 40.33% to
negative 21.41%. PBIT margin of Knowledge Service segment fell from 49.82% to
46.65%. PBIT margin of market services segment fell from 10.96% to 5.69%.
Overall PBIT margin fell from 32.93% to 30.80%.
Operating
profit margin has declined from 35.44% to 33.35%, leading to 4.09% rise in
operating profit to Rs 148.76 crore. Employee cost increased from 51.47% to
53.88%. Other expenses fell from 13.08% to 12.77%.
Other
income rose 51.30% to Rs 74.97 crore. PBIDT rose 16.25% to Rs 223.73 crore.
Provision for interest rose 638.30% to Rs 10.41 crore. Loan funds declined from
Rs 13.03 crore as of 31 March 2023 to Rs 12.68 crore as of 31 March 2024.
Sundry debtors were higher at Rs 53.01 crore as of 31 March 2024 compared to Rs
38.05 crore as of 31 March 2023. Cash and bank balance declined from Rs 241.50
crore as of 31 March 2023 to Rs 155.54 crore as of 31 March 2024. Investments
rose to Rs 813.44 crore as of 31 March 2024 from Rs 688.51 crore as of 31 March
2023.
PBDT
rose 11.66% to Rs 213.32 crore. Provision for depreciation rose 36.93% to Rs
13.46 crore. Fixed assets increased to Rs 62.04 crore as of 31 March 2024 from
Rs 47.22 crore as of 31 March 2023. Intangible assets increased from Rs 1.23
crore to Rs 30.19 crore.
Profit
before tax grew 10.29% to Rs 199.86 crore. Share of profit/loss were nil in
both the periods. Provision for tax was expense of Rs 47.62 crore, compared to
Rs 44.49 crore. Effective tax rate was 23.83% compared to 24.55%.
Minority
interest decreased 22.82% to Rs 1.15 crore. Net profit attributable to owners
of the company increased 11.72% to Rs 151.09 crore.
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ICRA: Consolidated
Results
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2403 (3)
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2303 (3)
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Var %
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2403 (12)
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2303 (12)
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Var %
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Sales
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123.96
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109.08
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14
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446.11
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403.23
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11
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OPM %
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40.2
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34.9
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33.3
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35.4
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OP
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49.86
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38.03
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31
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148.76
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142.92
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4
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Other Income
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23.68
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15.91
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49
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74.97
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49.55
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51
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PBDIT
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73.53
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53.94
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36
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223.73
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192.47
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16
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Interest
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6.93
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0.33
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2001
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10.41
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1.41
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638
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PBDT
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66.60
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53.61
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24
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213.32
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191.06
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12
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Depreciation
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4.47
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2.73
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64
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13.46
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9.83
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37
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PBT
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62.14
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50.88
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22
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199.86
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181.23
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10
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Tax
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15.08
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12.25
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23
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47.62
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44.50
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7
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PAT
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47.06
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38.63
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22
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152.24
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136.73
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11
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Minority interest
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0.19
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0.26
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-27
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1.15
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1.49
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-23
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Profit/Loss of
Associate Company
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0.00
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0.00
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-
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0.00
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0.00
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-
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PAT
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46.87
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38.37
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22
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151.09
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135.24
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12
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EPS (Rs)*
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194.2
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159.0
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156.6
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140.1
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*EPS is annualized on
latest equity of Rs 9.65 crore, face value of Rs 10 each, Source: Capitaline
Corporate Database
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ICRA : Consolidated
Segment Results
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% of total
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2403 (3)
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2303 (3)
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Var. (%)
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% of total
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2403 (12)
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2303 (12)
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Var. (%)
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Segment Revenue
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Rating,Research and
other Service
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57.9
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71.97
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63.36
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14
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57.7
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257.57
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230.00
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12
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Consulting Services
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7.2
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8.92
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2.13
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319
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3.7
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16.42
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5.74
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186
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Knowledge services
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31.1
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38.64
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39.30
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-2
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34.6
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154.64
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150.12
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3
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Market services
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3.8
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4.70
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4.58
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3
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4.0
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18.04
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18.26
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Total Reported Sales
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100.0
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124.22
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109.38
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14
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100.0
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446.67
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404.12
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11
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Less: Inter segment
revenues
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0.26
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0.30
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0.55
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0.89
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Net Sales
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100.00
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123.96
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109.08
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14
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100.00
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446.11
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403.23
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11
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PBIT
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Rating,Research and
other Service
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56.6
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25.96
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18.39
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41
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49.4
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67.94
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58.61
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16
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Consulting Services
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3.6
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1.64
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0.08
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1946
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-2.6
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-3.52
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-2.32
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52
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Knowledge services
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39.3
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18.02
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16.57
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9
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52.4
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72.13
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74.79
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-4
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Market services
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0.5
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0.22
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0.26
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0.7
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1.03
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2.00
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Total PBIT
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100.0
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45.83
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35.30
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30
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100.0
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137.58
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133.09
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3
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Less : Interest
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6.93
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0.33
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2001
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10.41
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1.41
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638
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Add: Other
un-allcoable
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23.23
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15.91
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46
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72.69
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49.54
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47
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Profit Before Tax
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62.13
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50.88
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22
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199.86
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181.22
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10
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Figures in Rs crore,
PL: Profit to Loss, LP: Loss to Profit
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Source: Capitaline
Corporate Database
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