The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for the first quarter ended March 31, 2019.
CRISIL’s consolidated income from operations for the quarter ended March 31, 2019, was Rs 415.8 crore, compared with Rs 420.0 crore in the corresponding quarter of 2018. Consolidated total income for the quarter ended March 31, 2019, was Rs 422.9 crore, compared with Rs 427.6 crore in the corresponding quarter of 2018. Consolidated net profit after tax for the quarter ended March 31, 2019, was Rs 76.6 crore, compared with Rs 82.2 crore in the corresponding quarter of 2018. Consolidated profit for the quarter was impacted due to foreign exchange loss of Rs 7.8 crore, compared with Rs 2.3 crore of foreign exchange gain in the corresponding quarter of 2018.
The Board of Directors has declared an interim dividend of Rs 6 per share (of Re 1 face value) for the financial year ending December 31, 2019.
Ashu Suyash, Managing Director & CEO, CRISIL, said, “CRISIL’s ratings business saw strong growth supported by surge in corporate bond issuances and securitisation transactions, as also by our differentiated positioning. The strong track record of the ratings business as measured by default and stability rates stand testimony to our relentless focus on analytical rigour, proactive surveillance, and high ratings quality. Our newer offerings across research, risk analytics and business intelligence are beginning to gain traction. However, overall growth was impacted due to the changing landscape for risk analytics”.
Capital market issuances rebounded in the first quarter after seeing a sharp 19% drop by value in calendar 2018.The liquidity squeeze that started in September 2018 has subsided considerably. Securitisation volumes witnessed strong pick-up, vaulting 81% year-on-year – the highest for a March quarter in the past three years. The business maintained its growth momentum and strengthened its leadership position in the corporate bond market. Large and mid-corporate ratings grew 13.5% year-on-year while the overall Ratings segment grew by more than 12%.
CRISIL Coalition maintained growth momentum with strong performance across clients and products. The business is seeing good traction for its foray into newer client segments. Financial Research grew with the addition of buy-side clients and saw encouraging conversions for its SPARC platform. India Research launched two new reports, one on the retail loans market, and the other on growth opportunities across states. The global risk analytics industry is seeing a decline in demand for select risk offerings because of changing regulatory milestones for Comprehensive Capital Analysis and Review as well as better preparedness across large banks. While this has impacted growth in the research segment, demand is increasing for credit risk and change management services as clients re-architect their front office, risk and finance platforms.
In the Advisory segment, growth was driven by increasing demand for business intelligence and risksolutions. The Infrastructure Advisory business too gained share in segments such as smart cities andairports as well as in select emerging markets.
CRISIL hosted a roundtable in London with senior risk professionals from leading investment andcommercial banks to discuss the changing model risk management expectations in Europe. A whitepaper on Fundamental Review of the Trading Book (FRTB) was released in the quarter. In addition, anumber of thought leadership publications such as ‘Global, national AAA ratings notcomparable’, Covering the pledge’ and opinion pieces on topical themes such as the Reserve Bank ofIndia (RBI) norms, liquefied natural gas prices and the solar sector were released which saw goodcoverage.
CRISIL Foundation released the CSR Yearbook during the quarter, which includes analysis of CSRspends by corporate India. Under the RBI’s Moneywise Centres for Financial Literacyproject, CRISIL expanded geographical coverage to Rajasthan beyond ongoing work in Haryana andMaharashtra.