ICRA Limited shares dropped nearly 4% on Tuesday, February 11, to ₹5,965.25 amid mixed investor reactions to its Q3 FY25 earnings. The credit rating agency posted a 30.3% year-on-year (YoY) jump in Profit After Tax (PAT) to ₹42.2 crore, driven by operational efficiencies, but concerns over rising interest expenses and high non-operating income weighed on the stock.
The company reported a 5.5% YoY increase in consolidated revenue from operations, reaching ₹120.9 crore. However, investors were wary as interest expenses surged, signaling rising borrowings. Moreover, non-operating income accounted for 33.81% of profit before tax (PBT), raising doubts about the sustainability of earnings.
Key Financial Highlights:
- Revenue from Operations: ₹120.9 crore, up 5.5% YoY
- PAT: ₹42.2 crore, up 30.3% YoY
- Nine-month Revenue: ₹361.8 crore, up 12.3% YoY
- Nine-month PAT: ₹115.2 crore, up 9.5% YoY
ICRA attributed its performance to strong growth in core rating and research segments. However, market concerns about future growth prospects persisted, reflected in the stock’s decline.
With ICRA’s market cap standing at ₹57.39 billion, analysts suggest closely monitoring its balance between core and non-core income sources.
