The Board of Directors of CRISIL Limited, at its meeting today, approved the audited financial results for fourth quarter ended December 31, 2017.
- Fiscal 2017 revenue up 7.2% year-on-year; profit after tax up by 3.4%
- Fourth-quarter revenue up 3.3% year-on-year; profit after tax up by 5.1%
- Final dividend of Rs 10 per share recommended. Total dividend of Rs 28 per share for 2017
CRISIL’s consolidated income from operations for the quarter ended December 31, 2017, rose 3.3% to Rs 441.1 crore, compared with Rs 426.9 crore in the corresponding quarter of 2016. Consolidated net profit for the quarter rose 5.1% to Rs 95.6 crore, compared with Rs 90.9 crore in the corresponding quarter of the previous year. Consolidated net profit for the quarter was affected by an adverse currency impact of Rs 1.9 crore, compared with a gain of Rs 3 crore in the corresponding quarter of the previous year.
Consolidated income from operations for the year ended December 31, 2017, was up 7.2% to Rs 1,661.1 crore, compared with Rs 1,549.7 crore in 2016. Consolidated net profit for the year was up 3.4% to Rs 304.4 crore, compared with Rs 294.3 crore in 2016. Consolidated net profit for the year was affected by an adverse currency impact of Rs 15.7 crore, compared with a gain of Rs 9.4 crore in 2016.
During 2017, the company paid three interim dividends amounting to Rs 18 per equity share of face value of Re 1 each. The Board of Directors has recommended a final dividend of Rs 10 per share. The total dividend for the year works out to Rs 28 per share.
Says Ashu Suyash, Managing Director & Chief Executive Officer, CRISIL, “Growth in 2017 was led by our global businesses, and supported by buoyancy in bond ratings and infrastructure advisory services domestically. But this was partially offset by adverse currency movement and the impact of subsidy reduction in the SME Ratings business. Across businesses, we have focussed on strategic shifts to cater to emerging customer needs, and therefore made substantial investments in launching new offerings and platforms.”
CRISIL Ratings continued to enhance its market position through client acquisitions. While better capital market activity helped it grow the bond ratings business, the bank loan segment remained muted due to weak credit growth. The business also received mandates for its new offerings – the Expected Loss scale, and independent credit evaluation of stressed assets. SME Ratings sharpened focus on new product development and initiated transition towards a digital model following the sharp reduction in subsidy.
Opportunities arising from regulatory controls and sharper focus on risk management augur well for the Global Research & Analytics business, which focused on expanding client footprint and new offerings. The business expanded its presence with sell side firms as a result of Markets in Financial Instruments Directive II, or MiFID II, regulations. The SPARC (Shared Platform for Assessing Risk of Counterparties) and SMART (Simple, Modular, Analytics & Research Toolkit) platforms launched by the business are receiving a good response. The business registered strong growth through addition of new clients and executing more complex assignments. The businessalso enhanced its offerings in the Financial Crime and Compliance, Change Management and BusinessTransformation segments.
CRISIL Coalition delivered a strong performance by increasing its base of corporate and investment banking clients,and it also added to its offerings for regional banks. There was good traction for CRISIL Coalition’s offerings in StressTesting and TBLS (Transaction Banking, Lending and Security Services).
Quantix, the new cross-sector data analytics platform launched by CRISIL Research, has seen encouraging clientresponse with several wins. The business saw robust growth in customised research offerings.
CRISIL Risk and Infrastructure Solutions Ltd, which houses the Infrastructure Advisory and Risk Solutionsbusinesses, saw buoyant demand for its offerings, and expanded its international footprint. Infrastructure Advisorywon several prestigious assignments including for the Smart Cities Mission, the Atal Mission for Rejuvenation andUrban Transformation, and value capture financing. CRISIL Risk Solutions increased client engagements, launchedan International Financial Reporting Standards, or IFRS 9, offering, and developed a model monitoring tool.
During the year, CRISIL signed a definitive agreement to acquire Pragmatix Services Pvt Ltd and the acquisition wascompleted in January 2018. This will enable CRISIL to leverage Pragmatix’s proprietary technology platform anddeep domain expertise, and enhance business intelligence, analytics and risk management offerings for the financialsector in India and abroad.
Several white papers were released, and conferences hosted in New York and London on themes such as Big Dataand MiFID II during the year. In partnership with S&P Global, CRISIL also hosted events in Hong Kong andSingapore. Domestically, CRISIL continued to focus on thought leadership and franchise development through manyevents, webinars, reports and press releases. The first edition of the CRISIL Infrastructure Conclave proved to be ahuge success, drawing wide participation from stakeholders. The conclave has become an industry platform forvisioning the next phase of infrastructure growth in the country.
CRISIL Foundation undertook several initiatives towards environment conservation, financial literacy and inclusiveeducation through a series of high-impact programs across states.