Icra Limited · NSE:ICRA
Icra — Q3 FY2020 Earnings Presentation
17 slides from Icra's earnings presentation, Feb 6, 2020
Slide 1: Exchange filing cover letter for Investor Presentation Q3 FY20
ICRA ICRA Limited Februal"y 6, 2020 BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Dalal Street Plot no. CIl, G Block Mumbai 400 001, India Bandra-Kurla Complex Scl"ip Code: 532835 Bandra (East) Mumbai - 400 051, India Symbol: ICRA Dear Sir/Madam, Sub:
Slide 2: Investor Presentation, Q3 FY20
Investor Presentation, Q3 FY20 February 6, 2020
Slide 3: ICRA Group Structure
® ICRA ICRA Group Structure 2a ICRA Nepal «— ~ ' ! ICRA Indonesia «<-- - a en ! ICRA Lanka <- ' t v Pragati Development Consulting Services Limited (PDCSL)
Slide 4: Performance Review: ICRA Limited
Performance Review: ICRA Limited
Slide 5: Operating Environment
Operating Environment • Bank credit grew by 7.0% y-o-y during Q3FY20. Non-Banking Financial Company (NBFC) and retail segments continue to remain key drivers of credit growth. Credit to Industry continued to remain subdued. • Bond issuances de-grew by 21.2% y-o-y during Q3FY20. Sharp decline in issu
Slide 6: Standalone: Financial Highlights
ICRA Standalone: Financial Highlights • For the quarter ended December 31, 2019 the Company’s operating revenue was ₹52.7 crore, as against ₹59.2 crore in the corresponding quarter of the previous financial year. The de-growth in operating revenue was due to lower fresh business in the debt market.
Slide 7: Standalone: Financials
ICRA Standalone: Financials Standalone Particulars (Rs. Crore) FY 19 FY 20 Variance FY 19 FY 20 Variance Q3 Q3 % 9M 9M % Income Revenue from operations 59.2 52.7 -11.0% 172.2 155.0 -10.0% Other income 10.0 9.9 -1.1% 34.4 30.6 -11.2% Total income 69.3 62.6 -9.5% 206.7 185.6 -10.2% Expenses Employee b
Slide 8: Standalone: Profit & Loss (Quarterly Performance)
ICRA Standalone: Profit & Loss (Quarterly Performance) 50% 115.0 41.0% 38.5% 40.8% 105.0 40% 95.0 35.2% 85.0 28.6% 30% 26.1% 75.0 19.1% ₹ Crores 20% 65.0 59.2 57.9 56.5 56.5 55.0 10% 45.0 51.4 50.9 52.7 34.8 35.1 37.5 41.2 0% 35.0 33.4 36.7 39.0 25.0 -10% 15.0 5.0 -20% PY Q1 PY Q2 PY Q3 PY Q4 CY Q1
Slide 9: ICRA: Investments as on December 31, 2019
ICRA: Investments as on December 31, 2019 ICRA Investments Standalone (₹ 540.8 Cr) ICRA Investments Group (₹ 659.6 Cr) Mutual Funds & Mutual Funds & Equities, Corporate Equities , Corporate ₹24.1 Deposits, ₹24.1 Deposits & ₹79.0 others, ₹ 79.0 Fixed Fixed deposits and deposits and Bank Bank balances
Slide 10: ICRA: Challenges and Risk Factors
ICRA: Challenges and Risk Factors • Despite several policy measures, investment activity yet to show a meaningful revival • Adverse yield movement • Ease of access and relative cost economics of overseas funding alternatives • Adverse changes in regulations • Reputation related risks • Competitive p
Slide 11: Performance Review: ICRA Group
Performance Review: ICRA Group
Slide 12: Group: Financial Highlights
ICRA Group: Financial Highlights • For the quarter ended December 31, 2019, revenue from operations was ₹ 79.4 crore, as against ₹ 84.7 crore in the corresponding quarter of the previous financial year, reflecting a de-growth of 6.3%, primarily due to lower revenue from rating services, offset by gr
Slide 13: Group: Consolidated Financials
ICRA Group: Consolidated Financials ICRA Consolidated Particulars (Rs. crores) FY 19 FY 20 Variance FY 19 FY 20 Variance Q3 Q3 % 9M 9M % Income Revenue from operations 84.7 79.4 -6.3% 244.4 234.0 -4.2% Other income 11.0 11.7 6.3% 33.2 35.5 7.0% Total income 95.7 91.0 -4.8% 277.6 269.5 -2.9% Expenses
Slide 14: Group: Profit & Loss (Quarterly Performance)
ICRA Group: Profit & Loss (Quarterly Performance) 130.0 50% 120.0 35.7% 33.5% 35.8% 40% 110.0 33.2% 100.0 29.5% 28.3% 30% 90.0 84.7 83.7 23.6% ₹ Crores 81.1 20% 78.7 77.0 77.6 79.4 80.0 70.0 10% 54.3 59.3 60.0 53.9 55.9 54.3 56.9 0% 50.5 50.0 -10% 40.0 30.0 -20% PY Q1 PY Q2 PY Q3 PY Q4 CY Q1 CY Q2 C
Slide 15: Group: Segment-wise Composition
ICRA Group: Segment-wise Composition Q3 FY 19 FY 19 Q3 FY 20 FY 20 Revenue Composition Rs. Cr % Rs. Cr % Ratings 60.2 70.6% 54.4 68.0% Consultancy 5.3 6.2% 4.2 5.2% Outsourced and Information Services 19.8 23.2% 21.4 26.7% Total Operating Income* 85.3 100.0% 80.0 100.0% Q3 FY 19 FY 19 Q3 FY 20 FY 20
Slide 16: Group: Outsourcing, Consulting and Subsidiary Merger
ICRA Group Outsourcing and Information Services • Operating revenue recorded a growth of 8.1% y-o-y (excluding export incentive) in Q3FY20, driven by growth in volumes of domestic and global businesses. Consulting Services • Operating revenue of consulting business de-grew by 20.4% y-o-y in Q3FY20.
Slide 17: 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