Why did ICRA report such a sharp fall in profits in the Jun-20 quarter?

ICRA, India’s second largest credit rating company, reported a 17% fall in net profit at Rs.17 crore for the Jun-20 quarter. ICRA reported nearly 10% lower total revenues for the Jun-20 quarter at Rs.80.79 crore. Revenues were impacted by the level of economic activity.

The less-than-expected pick-up in the economy in the September 2020 quarter due to partial lockdowns in some geographies meant that GDP may be under pressure during the third and fourth quarter too, making it tough for ICRA to expand revenues.