Icra's Q1 net dips 11 pc to Rs 21.6 cr

Domestic rating agency Icra on Thursday reported an 11 per cent decline in its June quarter consolidated net at Rs 21.6 crore. Icra, which is majority owned by global rating agency Moody's Group, had reported a post-tax net of Rs 24.3 crore in the year-ago period and Rs 33.7 crore in the preceding March quarter.

Its group chief executive and managing director Ramnath Krishnan attributed the slide in profit to a change in the accounting policies which caused the provision for taxes to go up by about Rs 5 crore and weighed on the bottomline.

He said the company displayed satisfactory performance on a lot of other metrics, including the standalone net, which was up 21.9 per cent to Rs 31.9 crore, profit margins and other aspects.


Its operating income rose 7 per cent to Rs 49.3 crore, Krishnan said, adding that the increase in bank loans and securitisation made up for the income loss accruing as a result of a slowdown in bond issuances.

When asked about recent reports of a regulatory directive about a possible withdrawal or relook at certain outstanding ratings, Krishnan acknowledged receipt of the communication from the Reserve Bank of India (RBI), stressing that its peers have also received similar letters.

He said the amount outstanding for such ratings is not substantial, and the agency will be complying with the regulatory expectations after getting a response to the clarifications that it has sought.

Icra scrip closed 0.54 per cent down at Rs 3,814 apiece on the BSE.