Icra Limited · NSE:ICRA
Icra — Investor Presentation (May 2023)
28 slides from Icra's investor presentation, May 24, 2023
Slide 1: Stock exchange cover letter: Investor Presentation FY2023
I ICRA May 24, 2023 ICRA Limited BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Plot no. C/1, G Block Mumbai 400 001, India Bandra-Kurla Complex Scrip Code: 532835 Bandra (East) Mumbai - 400 051, India Symbol: ICRA Dear Sir/Madam, Sub: - I
Slide 2: Unlocking Potential: Investor Presentation FY2023
UNLOCKING POTENTIAL Investor Presentation FY2023 May 2023 1
Slide 3: Agenda
AGENDA • ICRA AT A GLANCE • GROWTH IMPERATIVES • INSIGHTS • CONSOLIDATED FINANCIAL PERFORMANCE • BUSINESS DRIVERS & OUTLOOK • RESEARCH & OUTREACH • CORPORATE SOCIAL RESPONSIBILITY 2
Slide 4: ICRA at a Glance
4 a E ; A - ‘ ICRA AT A GLANCE
Slide 5: ICRA At A Glance
ICRA At A Glance ICRA Ltd, was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment information and credit rating agency, now a subsidiary of Moody’s Investors. RATING RESEARCH ANALYTICS ▪ Corpora
Slide 6: Key Call Outs
Key Call Outs Financial FY’2023 NON-FINANCIAL Revenue* ↑18% PBT ↑19% Track record of 30+ years with 17,000 (cumulative) rated entities, with rated Rs. 403.2 Rs. 181.2 debt of Rs. 78.03 Trillion Crore Crore Analyses Profit after Tax (PAT) ↑ 20% EPS ↑20% 20,000+ corporates, Financial Institutions Grou
Slide 7: Growth Imperatives
GROWTH IMPERATIVES 6
Slide 8: Aiming For Balanced and Sustainable Growth
Aiming For Balanced and Sustainable Growth Grow Risk Analytics & Analytical Excellence Assessment (RAA) Drive Profitable Step-up technology to People First Growth accelerate growth 77 RAA: Risk Assessment & Analytics www.icra.in
Slide 9: Insights
INSIGHTS 8
Slide 10: Macro Outlook
Macro Outlook ₹ ₹ ₹ ₹ ₹ GDP INFLATION REPO RATE FISCAL DEFICIT EXTERNAL Real Growth CPI Inflation MPC likely to pause ACCOUNT FD/GDP FY2023: 6.9% FY2023: 6.7% again in June 2023 FY2023: 6.4% FY2024: 6.0% FY2024: 5.3% meeting; pivot to rate CAD cuts appears distant FY2024: 5.9% FY2023: -2.0% of GDP N
Slide 11: Near-term outlook for economic activity remains uneven
Near-term outlook for economic activity remains uneven The GOI has enhanced Consumption of services high-multiplier capital remains robust while spending in the Union Private sector capex is likely demand for goods is External demand is Budget for FY2024. Given to pick up in FY2024, amidst somewhat
Slide 12: Consolidated Financial Performance
CONSOLIDATED FINANCIAL PERFORMANCE 11
Slide 13: Strong growth across Businesses: Q4 & FY2023
Strong growth across Businesses: Q4 & FY2023 Revenue ` Profit after Tax 18% 20% 16% 15% 403.2 109.1 136.7 342.8 38.6 113.5 93.7 33.7 Q4 FY2022 Q4 FY2023 FY2022 FY2023 Q4 FY2022 Q4 FY2023 FY2022 FY2023 ▪ Q4 FY2023 performance reflects the resurgence of economic confidence, coupled with the fruition o
Slide 14: Segmental Performance: Q4 & FY2023
Segmental Performance: Q4 & FY2023 Segment Revenue ` Segment Results 109.1 36.2 3% 35.3 16% 93.7 63.4 19.4 18.4 54.3 16.4 16.6 32.3 39.3 7.1 6.4 0.4 0.3 Q4 FY2022 Q4 FY2023 Q4 FY2022 Q4 FY2023 403.2 18% 133.1 18% 342.8 112.8 58.6 230.0 52.1 202.5 74.8 150.1 60.3 117.7 22.6 23.1 0.4 (0.3) FY2022 FY20
Slide 15: Business Drivers & Outlook
BUSINESS DRIVERS & OUTLOOK 14
Slide 16: Ratings: Business Environment
Ratings: Business Environment Market Issuances Bank Credit Bonds Q4 FY23: 54.8% growth on-year Non-Food Bank Credit o/s FY 23: 28.5% growth on-year Q4 FY23: 3.2% [2.1% PY] growth on-quarter FY 23: 15.5% growth on-year ➢ Led by Bank and NBFC issuances ➢ Strong surge in the second half after a sluggis
Slide 17: Near-term Business Drivers
Near-term Business Drivers Bank Credit Bank credit growth is expected Market Issuances to moderate to 11.0-11.7% in FY2024 driven by the effect of Bond issuances are expected higher base. Higher to remain strong in FY2024 at infrastructure outlay by the INR ~8.5-8.9 lakh crore; Govt, working capital
Slide 18: Sharp Improvement in Rating Accuracy Metrics
Sharp Improvement in Rating Accuracy Metrics Trend in Rating Reaffirmations and Rating Changes 80% 79% 82% 84% 81% 82% 81% 84% 77% 80% Reaffirmations 10-year average: 2.1 3.0 2.8 80% 1.4 1.5 1.2 1.3 Downgrades 1.1 0.9 10-year average: 0.6 6% 8% 10% 7% 7% 7% 8% 12% 5% 7% 9% 18% 15% 11% 14% 11% 8% 11%
Slide 19: Analytics
Analytics Knowledge Services Market data Risk Management ▪ Analytics for financial reports, ESG ▪ Preferred vendor for Mutual Fund data for ▪ Internal rating models for banks and NBFCs ▪ Structured finance modelling and data over 20 years ▪ ECL solutions management ▪ Fixed income valuation products
Slide 20: Research & Outreach
RESEARCH & OUTREACH 19
Slide 21: Research and Outreach
Research and Outreach 1 WEBINARS & EVENTS 2 RESEARCH PUBLISHED 3 MEDIA COVERAGE 20 20 www.icra.in
Slide 22: Social Listening
Social Listening 21 21 www.icra.in
Slide 23: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 22
Slide 24: ICRA Cares - Change Begins Here!
ICRA Cares - Change Begins Here! WOMEN SUPPORTED & INDIVIDUALS SUPPORTED 550 EMPOWERED 371 STUDENTS EDUCATED 800 IN LEARNING SKILLS HOURS VOLUNTEERED STUDENT’S EDUCATION MARGINALISED YOUTH 33 BY EMPLOYEES 241 SPONSORED 500 TRAINED 23 23 www.icra.in
Slide 25: Employee Engagement in CSR Initiatives
Employee Engagement in CSR Initiatives 24 24 www.icra.in
Slide 26: Disclaimer
Disclaimer This Investor Presentation contains certain forward-looking statements (including expectations and plans) that may be identified by words, phrases, or expressions such as “expected”, “likely”, “will”, “would”, “continue”, “intend to”, “in future”, “opportunities” or their variations. Thes
Slide 27: © Copyright, 2023 ICRA Limited. All Rights Reserved.
© Copyright, 2023 ICRA Limited. All Rights Reserved. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable. Although reasonable care has been taken to ensure that the information herein is true, such information is provided 'as is' without
Slide 28: Thank You!
GY crs Thank You! ey