Icra conslidated net profit rises 8.6% to Rs 24.45 cr in December quarter

Ratings firm Icra on Thursday reported an 8.6 per cent rise in its consolidated net profit to Rs 24.45 crore in the third quarter ended December 2020.

It had posted a net profit of Rs 22.52 crore during the same quarter a year ago.

The consolidated total income in the quarter fell to Rs 88.74 crore as against Rs 91.03 crore in the same period previous fiscal, Icra said in a regulatory filing.

The de-growth in consolidated revenue in Q3 FY21 has been mainly due to a decline in revenue from the rating segment. The outsourcing, information services and consulting segments have shown good traction, driven by growth in global and domestic businesses, it said in a release.

With regard to addressing certain ongoing matters, Icra said market regulator Sebi in the second quarter ended September 2020 had enhanced penalty from Rs 25 lakh to Rs 1 crore in respect of an adjudication proceeding initiated by it in relation to credit ratings assigned to one of the company's customers and customer's subsidiaries.

The company has deposited the enhanced penalty during December 2020 quarter under protest and has filed an appeal with Securities Appellate Tribunal contesting the said order, it added.

"The said appeal is under review," Icra said.

The matter relates to lapses on part of Icra while assigning a credit rating to non-convertible debentures of IL&FS.

Shares of Icra closed flat at Rs 2,778.80 apiece on BSE.