Profit before tax (PBT) for the quarter was at Rs 23.29 crore, lower by 25.9% as against Rs 31.45 crore in the same period last year.

ICRA said that the de-growth in consolidated revenue for the quarter ended June 30, 2020 was mainly due to decline in revenue from rating business. The outsourcing & information services business, shown a traction due to growth in the global business.

On a standalone basis, the company's net profit slumped by 33.1% to Rs 9.98 crore on a 17.3% fall in net sales to Rs 42.50 crore in Q1 June 2020 over Q1 June 2019.

"The bank loan segment got adversely impacted due the steep fall in economic activities and risk aversion following the nationwide lockdown after Covid-19 outbreak. Though the debt market segment benefitted significantly from an increase in bond issuances as a part of TLTRO programmes, this however was restricted to a few select entities. Further, the securitisation volumes contracted rather sharply due to the moratorium extended to the borrowers," the ratings agency said in a statement.

The other income in the first quarter declined by 5.1% on year-on-year (YoY) basis to Rs 42.50 crore due to declining interest rates in general.

Other expenses jumped by 12.3% YoY to Rs 9.98 crore during the quarter mainly on account of legal cost incurred in relation to certain regulatory and other matters.

Standalone PBT in Q1 FY21 stood at Rs 13.64 crore, down by 41.6% from Rs 23.36 crore in Q1 FY20.

ICRA is one of the leading credit rating agencies in India, which offers, through its subsidiaries, rating services in Nepal and Sri Lanka. It also offers outsourcing, information and consulting services through its subsidiaries.