ICRA Share Price

ICRA Limited

Establishing itself as a leading player of investment information and credit rating services in India, ICRA Limited was founded in 1991. Headquartered in Gurugram, Haryana, ICRA provides solutions such as credit ratings, research, and risk management to investors and businesses, enabling them to make well-informed decisions. Under the leadership of Managing Director Ramnath Krishnan, ICRA continues to set industry benchmarks with its analytical expertise and robust risk assessment services. As a publicly listed company on BSE and NSE, ICRA remains a key player in shaping India's financial landscape.

Rating Services

ICRA's core strength lies in its rating services:

• Corporate Ratings: Assesses credit risk for loans, NCDs, commercial paper
• Bank Loan Ratings: Evaluates risk levels of bank facilities
• Insurance Ratings: Analyzes claims paying ability of insurers
• Mutual Fund Ratings: Rates credit risk levels of debt funds
• Structured Finance: Rates securitized debt, CLOs, other instruments
• Project Finance: Appraises infrastructure and real estate projects

Research Offerings

ICRA provides in-depth research across sectors:

• Industry Research: Detailed studies on trends, outlook, policies
• Equity Research: Fundamental analysis and valuation for listed firms Fixed Income Research: Covers money markets, government securities, bonds
• Economic Research: Tracks macroeconomic indicators, policy changes

Risk Management Solutions

ICRA offers customized risk management services:

• Risk Analytics: Statistical models for credit, market, operational risks
• Risk Advisory: Assistance on risk frameworks, policies, processes
• Regulatory Compliance: Support on RBI, SEBI regulations
• Risk Quantification: Measuring portfolio risk through analysis, modeling

Grading Services

ICRA provides relative rankings for

• Corporate Governance: Evaluates governance standards, practices
• Management Quality: Assesses fund management processes
• Real Estate Projects: Ranks residential projects on various parameters

Technology Solutions

Leveraging technology to deliver insights.

• Analytical Platforms: Applications for portfolio analysis, benchmarking
• Regulatory Platforms: Solutions for regulatory reporting, compliance
• Sector Platforms: Industry data, visualization tools, forecasting models

Financial Performance

CRA Limited has shown consistent financial growth through its strong business model and operational efficiencies. Here is a summary of its recent financial performance:

FY24 Financial Highlights

1. Total Revenue: ₹446.1 crore, up 10.6% year-over-year (YoY) from ₹403.2 crore in FY23.
   
2. EBITDA: ₹148.8 crore, reflecting a 4.1% YoY growth.
   
3. Net Profit (PAT): ₹152.24 crore, a 11.3% increase from ₹136.72 crore in FY23.
   
4. EBITDA Margin: Approximately 33%, showcasing operational efficiency.
   

Q3 FY25 Performance (October–December 2024)

1. Revenue from Operations: ₹126.12 crore, a 20% YoY increase from ₹104.85 crore in Q3 FY24.
   
2. Net Profit (PAT): ₹37.1 crore, up 15% YoY from ₹32.15 crore in Q3 FY24.
   

Key Growth Metrics

3-Year CAGR: Revenue: 14% EBITDA: 15% PAT: 20%

The company has consistently achieved double-digit growth across key financial metrics, reflecting strong demand for its credit rating and analytics services.

Key Drivers

• Growth in the ratings business due to an increase in bond issuances and bank credit.
  
• Improved profitability in consulting and knowledge services segments.
  
• Higher operational leverage and cost control measures.
  

ICRA's consistent financial performance highlights its strong market position and ability to capitalize on favorable industry trends, such as rising credit demand and increased economic activity.

Credit Rating Industry Outlook

India's credit rating industry is poised for robust growth

• Increasing corporate bond issuances
• New complex instruments requiring ratings
• Higher demand for risk management services
• Regulatory push towards greater transparency
• Digital solutions for smarter insights, automation

ICRA is well-positioned to capitalize on these trends.

Competitive Positioning

ICRA enjoys a strong competitive position:

• One of the leading rating agencies in India
• Trusted for timely and accurate ratings
• High sector expertise across industries
• Advanced analytics and technology capabilities
• Strong parentage under Moody's

Growth Strategy

ICRA plans to drive growth through:

• Expanding client base across sectors
• Customizing services for new instruments
• Investing in digital platforms and analytics
• Cross-selling risk management solutions
• Pursuing inorganic opportunities selectively
• Deepening sector expertise through research
• Enhancing rating methodologies leveraging new data sources

Global Partnerships and Market Expansion

Leveraging its relationship with Moody's, its largest shareholder, ICRA has strengthened its global presence and expertise. The technical collaborations and shared best practices have enhanced its analytical capabilities and expanded its service offerings. Strategic partnerships with global data providers like FactSet, Bloomberg, and ICE have provided advanced market data solutions. These initiatives have placed ICRA in a position to serve both domestic and international markets, and it has been growing in areas such as knowledge services, risk management solutions, and regulatory compliance.

Brief Overview

With its strong brand, sector knowledge and technology focus, ICRA is well-poised to maintain leadership in India's evolving credit rating industry. The company's diversified services portfolio and growth strategy provide healthy revenue visibility. ICRA remains a trusted provider of insights and risk assessment services to financial market participants, which positively influences the ICRA share price.