ICRA's Q2 FY25 Financial Results Show Mixed Performance, Strong Operating Cash Flow and Record Net Sales.

ICRA, a leading ratings agency in the midcap industry, has recently announced its financial results for the quarter ending September 2024. The company has shown a flat performance for the quarter, with a score of 3, which is an improvement from the previous quarter’s score of -4.

One of the key highlights of ICRA’s financials is its strong operating cash flow, which has been consistently growing over the past three years. This is a positive sign for the company as it indicates that it has been able to generate higher cash revenues from its business operations. Additionally, ICRA has a very low interest cost, which suggests that its debt levels are well under control.

In terms of sales, ICRA has recorded its highest quarterly net sales of Rs 126.12 crore in the last five quarters, indicating a positive trend in the near term. The company’s profit before tax (PBT) has also shown a growth of 20.7% over the average PBT of the previous four quarters, which is a positive sign for investors.

However, there are some areas of concern for ICRA, as its interest cost has increased by 170.69% over the preceding nine months period. This could be a result of increased borrowings by the company. Additionally, ICRA’s non-operating income is quite high, accounting for 35.21% of its PBT. This suggests that the company’s income from non-business activities is significant, which may not be a sustainable business model in the long run.

Overall, ICRA’s financial results for the quarter ending September 2024 have been mixed, with some positive and negative aspects. Based on these results, MarketsMOJO has given a ‘Hold’ call for the company’s stock. Investors should carefully consider these factors before making any investment decisions.