Highlights for quarter and half year ended June 30, 2023:

• Income from operations for the quarter up 15.3%, and for the half year rose 17.6%
• PAT for the quarter up 10.0%, and for the half year rose 14.6%
• Interim dividend of Rs 8 per share declared

The Board of Directors of CRISIL Ltd, at its meeting today, approved the unaudited financial results for the second quarter ended June 30, 2023 (Q2 2023).

CRISIL’s consolidated income from operations rose 15.3% to Rs 771.0 crore in Q2 2023, compared with Rs 668.5 crore in the corresponding quarter of the previous year. Consolidated total income was up 12.1% to Rs 788.8 crore in Q2 2023, compared with Rs 703.8 crore in the corresponding quarter of the previous year. Profit after tax increased 10.0% to Rs 150.6 crore in Q2 2023, compared with Rs 136.9 crore in the corresponding quarter of the previous year.

CRISIL’s consolidated income from operations for the half year ended June 30, 2023 (H1 2023), rose 17.6% to Rs 1,485.9 crore, compared with Rs 1,263.5 crore in the corresponding period of the previous year. Consolidated total income was up 15.3% to Rs 1,521.0 crore in H1 2023, compared with Rs 1,318.9 crore in the corresponding period of the previous year. Profit after tax increased 14.6% to Rs 296.3 crore in H1 2023, compared with Rs 258.5 crore in the corresponding period of the previous year.

The Board of Directors declared an interim dividend of Rs 8 per share (of Rs 1 face value) in the current quarter for the financial year ending December 31, 2023, compared with Rs 8 per share declared during the corresponding quarter of the previous year.

During Q2 2023, the impact of foreign exchange movement was not favourable compared with the same quarter last year.

Says Amish Mehta, Managing Director and CEO, CRISIL Ltd, “Economic activity globally and in India was resilient during Q2 2023. There are incipient signs of slowdown in banking and financial services spending globally that, in turn, is impacting discretionary spends. Global banking clients are focusing on operational efficiencies, spending to conform to regulatory changes, and for their sustainability and business transformation agendas. Amid this environment, we saw growth across our businesses. We remain committed to growing sustainably and continue investing in technology, people and new capabilities.”

Slowing global growth is expected to progressively weigh on domestic activity. While domestic demand has been resilient so far, it could moderate later this fiscal as the full impact of rate hikes of the recent past manifests and the pent-up demand in contact-based services wanes.

Softening inflation and the Reserve Bank of India (RBI) pausing its rate hike cycle have led to easing of corporate bond yields, which, in turn, encouraged issuances in Q2 2023.

The performance of CRISIL Ratings was supported by higher bond issuances and increased demand for bank loan ratings during the second quarter. Overall, revenue was up 23.2% on-year in Q2 2023. Global Analytical Center (GAC) saw robust analytical coverage delegation by S&P Global Ratings.

The ratings services segment saw revenue grow 22.7% on-year in Q2 2023.Global Research & Risk Solutions (GR&RS) witnessed momentum across lending and risk solutions.

Global Benchmarking Analytics (GBA) continues to strengthen its client engagement through actionable analytics and intelligence.

Market Intelligence & Analytics (MI&A) saw momentum in its credit, risk, and research and consulting offerings.

The Research, Analytics & Solutions segment grew 13.1% on-year in Q2 2023.

Franchise activity continued well during Q2 2023. CRISIL Ratings hosted webinars on sectors such as oil, airports and automobiles, held the CRISIL Ratings Conclave at Kolkata, and released the Ratings Round-Up for the second half of last fiscal. MI&A hosted a ‘Meet the Expert’ on the gold and ports industries, and hosted webinars on sustainable finance and the roads sector.

GR&RS conducted a panel discussion on artificial intelligence at financial institutions, and organised a Private Markets Forum 2023 in New York. A couple of reports were published, including ‘Enhancing asset management insights with alternative data ingestion’, and Model risk management principles for banks. GBA published articles on fixed-income ESG investing, the future of trade surveillance, and the Securities and Exchange Commission’s US treasury clearing proposal.

CRISIL Foundation expanded outreach to more than 1.2 lakh rural community members in Assam and Rajasthan during Q2 2023 under its flagship ‘Mein Pragati’ program, taking the cumulative impact to over 1.5 million rural communities.