ICRA Limited Q4 and FY24 Earnings Call Summary
Earnings Highlights
• Date of Call: May 28, 2024
• Consolidated Revenue Growth: 10.6% for FY24
• Ratings business growth: 12%
• Analytics growth: 8.6%
• Profit After Tax: Increased by 11.3%
• Proposed Dividend: INR 100 per share (including special dividend of INR 60)
ESG Commitment
• Approval of subsidiary as a Category 1 ESG Rating Provider
• Emphasis on adherence to ESG principles
Acquisition
• Acquisition of D2K Technologies to diversify analytics offerings
Economic Outlook
• Projected GDP growth for FY25: 6.5%
• Influenced by various economic factors
Financial Performance
• Q4 FY24 Revenue Increase: 13.7%
• Q4 FY24 Profit After Tax Rise: 22%
Ratings Business Overview
• FY24 Growth:
• Bank credit: 16.3%
• Bond issuances: 17.2%
• Securitization volumes: 25%
• FY25 Outlook:
• Potential headwinds for bank credit growth
• Bond issuances may benefit from competitive domestic funding costs
Rating Operations
• Improved accuracy metrics with an average default position (ADP) of 94%
• Decrease in defaults and normalized rating change rate
ICRA Analytics Limited Performance
• Growth in three main verticals: knowledge services, market data, risk management
• Positive outlook driven by automation and cloud-based solutions
Q&A Highlights
• Discussion on EBITDA margins and sustainability
• Concerns about slowing growth in knowledge services
• Insights on revenue contribution from D2K Technologies
• Acknowledgment of need for better capital allocation
Investment and Growth Strategy
• Focus on technology enhancements for user experience
• Future spending aligned with core competencies in risk analytics and research
• Exploration of inorganic growth opportunities
Regulatory and Competitive Landscape
• Regulatory constraints on monetizing certain data
• Opportunities for monetization through ICRA Analytics
• Ongoing collaboration with Moody's for data analysis and business transformation
Conclusion
• Management expressed commitment to improving operational efficiencies and maintaining flexibility in costs despite revenue fluctuations.

ICRA Limited Earnings Conference Call Summary (October 26, 2023)
Financial Performance Highlights
• Revenue Growth:
• 11.8% year-on-year growth in ratings business.
• 4.4% increase in ICRA Analytics.
• Overall top line growth of 8.6%.
• Profit before tax (PBT) increased by 17.6%.
Strategic Developments
• Acquisition:
• Agreement to acquire a majority stake in D2K Technologies to enhance risk and analytics capabilities.
• ESG Ratings:
• Application for a license to commence ESG ratings.
• Inclusion in MSCI India Domestic Small Cap Index.
Economic Outlook
• GDP Growth Projection:
• Expected GDP growth of 6% for FY24, with risks from geopolitical tensions and uneven monsoon.
Business Environment and Outlook
• Ratings Business:
• Strong bond issuances (up 43.5% YoY) and bank credit (up 6.5%).
• Challenges in Q2 due to volatile bond yields and tight liquidity.
• Cautiously optimistic outlook for FY24 supported by government spending.
Rating Operations Update
• Rating Accuracy:
• Improved metrics with an Average Default Position (ADP) of 95.1%.
• Normalization in rating upgrades and downgrades.
ICRA Analytics Performance
• Growth Drivers:
• Strong growth in knowledge services due to digitization and AI.
• Increased demand in risk management from financial institutions.
Q&A Highlights
• Revenue Growth Fluctuations:
• Discussion on decline from 16% YoY in Q1 to 8% in Q2.
• Margin Improvement Strategies:
• Focus on headcount management and technology investments.
• ESG Ratings Market:
• Potential for growth despite regulatory framework still developing.
Technology and Cost Management
• Technology Investments:
• Emphasis on operational efficiencies and future technologies like AI.
• Cost Reallocation:
• Aimed at improving efficiency and profitability.
Employee Costs and Headcount
• Employee Cost Growth:
• Adjustments reflect a stable outlook; ongoing investments in technology.
• Headcount Stagnation:
• Lack of incremental headcount attributed to global economic challenges.
Collaborations and Partnerships
• Global Data Providers:
• Collaborations with FactSet and Bloomberg for analytics services.
• Expansion of partnerships to enhance revenue and service offerings.
Future Growth Expectations
• Market Conditions:
• Anticipated growth in ratings business influenced by market activity and government spending.
• D2K Acquisition:
• Expected to complement existing offerings and enhance revenue streams.

ICRA Limited Earnings Conference Call Summary (May 25, 2023)
Financial Performance Highlights
• Record Revenue: Exceeded INR 4 billion with an 18% growth.
• Rating business: 14% increase.
• Non-Rating business (ICRA Analytics): 23% increase.
• Profit Growth: 20% increase in profit after tax.
• Dividends: Recommended Rs. 40 per share and a one-time special dividend of Rs. 90 per share, pending approval.
Future Outlook
• Goals: Enhance operating margins, invest in talent and technology, expand Analytics business.
• Economic Projections: Anticipated GDP growth of 6% for FY24, stable interest rates, increased government infrastructure spending.
Rating Business Overview
• Market Conditions: Strong domestic credit market growth despite global challenges.
• Bank credit: 15% year-on-year growth.
• Bond issuances: 28% increase.
• Future Expectations: Continued growth in bank credit and bond issuances supported by government investments.
Performance Metrics
• Average Default Position (ADP): All-time high of 93.3%.
• Rating Stability: 80% of ratings reaffirmed or unchanged; 15% upgrades, 5% downgrades.
ICRA Analytics Overview
• Key Verticals: Knowledge Services, Market Data, Risk Management.
• Focus on outsourcing financial analysis and expanding into ESG Analytics.
• Market Strategy: Prioritizing profitability, exiting unprofitable areas, and enhancing core competencies.
Employee Development and Technology Integration
• Recognition: Acknowledged as a "Great Place to Work."
• Commitment: Focus on process orientation, technology integration, and employee development.
Q&A Highlights
• Revenue Mix and Competitive Dynamics: Positive growth trends in initial rating fees and surveillance fees.
• Margin Improvement: Controlled personnel costs expected to enhance margins.
• ESG Ratings: Evolving regulatory landscape with potential market growth.
• Dividend Policy: Historical payout ratio of 25% to 50% of profits.
Impact of HDFC Merger
• Debt Market: Continued demand for debt post-merger, ensuring rating opportunities.
• Concerns Addressed: Assurance of ongoing rating capabilities for the merged entity.
Employee Costs and Hiring Plans
• Cost Increases: Attributed to changes in compensation structure and senior management additions.
• Hiring Strategy: Linked to business visibility; analytics team consists of approximately 840 employees.
Non-Rating Business Growth
• Path to Profitability: Focus on integrating technology and exiting non-core consulting areas.
• Market Position: Strong domain expertise in ESG Analytics against competitors.
Conclusion
• Engagement: Participants thanked for their involvement in the conference call.