ICRA (ICRA) Q1 24/25 earnings summary

Executive summary

• Achieved strong growth in Q1 FY2025, with consolidated revenue rising to ₹12,396.45 lakhs from ₹10,271.46 lakhs year-over-year, despite a transient dip in economic activities due to elections and uneven monsoon progress.

• Profit after tax for Q1 FY2025 was ₹3,588.87 lakhs, compared to ₹4,062.78 lakhs in Q1 FY2024.

• The Board recommended a total dividend of ₹100 per equity share for FY24, down from ₹130 per share in the previous year.

• Bond market issuances to NBFCs declined on a high base, while bank credit grew despite tight liquidity and slow deposit growth; securitization volumes were supported by NBFCs and banks.

Financial highlights

• Q1 FY2025 revenue reached ₹12,396.45 lakhs, up from ₹10,271.46 lakhs in Q1 FY2024.

• Profit after tax for Q1 FY2025 was ₹3,588.87 lakhs, compared to ₹4,062.78 lakhs in Q1 FY2024.

• Total income for the quarter was ₹14,764.21 lakhs, up from ₹13,270.47 lakhs year-over-year.

• Total expenses increased to ₹8,549.79 lakhs from ₹7,072.94 lakhs year-over-year.

• Basic EPS for the quarter was ₹36.92, compared to ₹41.90 in the same quarter last year.

Outlook and guidance

• Real GDP growth for FY2025 is projected at 6.8%, with nominal growth at 10.8%.

• CPI inflation expected at 4.6% and WPI inflation at 3.3% for FY2025.

• Fiscal deficit to GDP ratio forecasted at 4.9%-5.0% for FY2025.

• MPC likely to pause repo rate in August 2024, with earliest rate cut expected in December 2024.

• Back-ended economic growth pick-up anticipated in H2 FY2025, with rural demand subdued in H1 and urban consumption remaining upbeat but uneven.