ICRA Limited — Investor Presentation 2022

Oct 20, 2022

ICRA Limited

October 20, 2022

BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001, India Scrip Code: 532835

National Stock Exchange of India Limited Exchange Plaza, Plot no. C/1, G Block Bandra-Kurla Complex Bandra (East) Mumbai - 400 051, India Symbol: ICRA

Dear Sir/Madam,

Sub: - Investor Presentation, Q2 FY23

Pursuant to the applicable regulations of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, please find enclosed Investor Presentation Q2 FY23.

Kindly take the above on record.

Regards,

Sincerely,

SYED SHAKEB RAHMAN Digitally signed by SYED SHAKEB RAHMAN Date: 2022.10.20 19:18:31 +05'30'

(S. Shakeb Rahman) Company Secretary & Compliance Officer

Encl.: As Above

Building No. 8, 2"a Floor, Tower A Tel. : +91 .124.4545300 Website : www.icra.in DLF Cyber City, Phase II CIN : L74999DL 1991 PLC042749 Email : info@icraindia.com Gurugram - 122002, Haryana Helpdesk : +91.9354738909 Registered Office : B - 710, Statesman House, 148, Barakhamba Road, New Delhi - 110001. Tel. : +91 .11 .23357940-41

RA T ING • RESEARCH • INFORMAT I ON 129536

Group ICRA

Investor Presentation: Q2 FY23

OCTOBER 2022

ICRA Insights

ICRA's baseline forecasts

Near-term outlook for economic activity remains uneven

External demand is expected to be cautious following the ongoing geopolitical tensions and aggressive Monetary Policy tightening by some major advanced economy Central Banks, which could weigh on merchandise and services exports

The elevated domestic inflation is expected to strain household budgets and compress discretionary consumption, particularly in the low-to-middle income segments

The consumption of contactintensive services is likely to be prioritised, boosting the output in such sectors while simultaneously constraining the demand for consumer goods

However, a section of the households is likely to have better income visibility now, compared to the last two years, which is likely to boost their overall consumption levels

Marketissuances	•Growthof4%YoY*inQ2FY2023duetorisingyields,cheaperbankcredit•Spurtindebtissuancesbybanks,tepidgrowthinNBFCs,de-growthincorporatesector•CPissuancesgrew18%[QoQ]	BankCredit	•StrongcreditofftakeinQ2FY2023acrosssegmentsspecificallyNBFCs•Highglobalratesandhighbondyieldscoupledwiththelikelihoodofthelattergoingupfurthersupportedtheabove
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•Securitisationvolumescontinuedtorebound
aidedbygrowthinNBFCdisbursementsand
previousyearlowbaseduetothepandemic

• Rated volumes also grew strongly in Q2

Ratings market

• Industry rating demand grew in Q2 FY2023, although the impact of a weak Q1 for the bond market continued to bear down on overall H1 rating market performance

ICRA Consolidated Financial Performance

Strong growth across businesses

▪ Controlled cost increase, coupled with strong revenue growth, contributed to margin improvement

Margins in bold, in white boxes. All numbers except margins in INR crore

37.2

24.4

Q2 FY22 Q2 FY23

Profit before Tax Margin = Profit before Tax/Revenue; Profit after Tax Margin = Profit after Tax/Revenue

48.7

H1 FY22 H1 FY23

58.9

Segmental Performance: H1 FY23

• ICRA Ratingsshowed robust growth driven by bank loan and structured finance ratings
• Analytics business performance supported by growth in Knowledge services, driven by the expansion of ESG analytical support as well as growth in other value-added financial services segments. The segment also benefited positively from the forex movement
• Launch of new products and product updates in the analyticssubsidiary aided domestic market in the current year

Segment Revenue and Segment Results are before inter-segment consolidation adjustments

Highlights of the quarter

www.icra.in

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