The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for the second quarter ended June 30, 2017.
Profit after tax in the second quarter grew 9.3% year-on-year; Operating profit up by 17.3%
CRISIL’s consolidated income from operations was up 8.6% to Rs 407.30 crore during the quarter, compared to Rs 374.97 crore in the corresponding quarter of 2016. Net profit stood at Rs 67.25 crore, compared to Rs 61.51 crore in the corresponding quarter of the previous year. There was an adverse forex impact of Rs 2.12 crore during the quarter, compared with a gain of Rs 4.71 crore in the comparable quarter of the previous year.
For the six months ended June 30, 2017, consolidated income from operations increased 10.3% to Rs 809.53 crore compared to Rs 734.02 crore in the corresponding period of the previous year. Consolidated profit after tax for six months ended June 30, 2017, was Rs 139.39 crore as against Rs 133.38 crore in the corresponding period of the previous year. Net profit for the six months ended June 30, 2017, includes adverse forex impact of Rs 14.01 crore compared with a gain of Rs 8.02 crore in the corresponding period of the previous year.
The Board of Directors has declared a second interim dividend of Rs 6 per share (of Re 1 face value) for the financial year ending December 31, 2017.
Ashu Suyash, Managing Director & CEO, CRISIL, said, “The June quarter saw growth across business segments. In line with the trend of increasing demand for automation from our clients, we have launched innovative offerings for both the domestic and global markets. These products have the potential to be key drivers for growth in future.”
During the quarter rating segment witnessed modest growth, primarily driven by strong growth in largecorporate ratings, whereas SME witnessed decline post significant reduction in the NSIC subsidy. Our recently launched Expected Loss (EL) scale for a rating of infrastructure projects saw good traction. The domestic business environment has improved, though private investments and credit offtake remain weak on account of low capacity utilisation and high leverage.
The research segment delivered strong growth with the addition of clients in India Research and Global Research & Analytics. In India, ‘Quantix’, a data analytics platform that leverages CRISIL’s large data repository, was launched. Globally, the financial research vertical hosted a client panel discussion, ‘Disruptions and the future of research’ in New York, coinciding with the launch of SMART, our innovative financial research platform aimed at driving efficiencies in the sell- and buy-side research processes.
Risk & Analytics continued its growth momentum, pursuing opportunities in model validation, stress testing, regulatory change management, and financial crime and compliance analytics. Coalition delivered good growth through its core products and commercialisation of Transaction Banking and Securities Services analytics.
CRISIL Risk and Infrastructure Solutions (CRIS) Ltd, a wholly owned subsidiary of CRISIL Ltd. that houses the Risk Solutions and Infrastructure Advisory businesses, witnessed strong growth driven by new business wins and successful delivery of existing projects. CRIS is on track towards improved profitability, with recent investments in Risk Solutions beginning to pay off. Infrastructure Advisory won another marquee mandate for Smart City implementation from the Kalyan-Dombivali Municipal Corporation.
During the quarter, CRISIL Foundation’s outreach to women through its flagship ‘Mein Pragati’ programme touched the 100,000 milestones in the state of Assam. The programme is aimed at strengthening the financial capabilities of socially and economically challenged communities.
As part of its thought leadership and outreach initiatives, CRISIL successfully hosted webinars on credit quality in sectors such as renewable energy, housing finance and cement, and published a report on three years of the Narendra Modi government. CRISIL worked with bodies such as the World Economic Forum and the USIBC in areas of infrastructure development and investments. CRISIL also published joint reports with the Pension Fund Regulatory and Development Authority of India (PFRDA) and the Association of
Mutual Funds of India (AMFI).