Highlights for the quarter and half year ended June 30, 2019

• Consolidated total income for the quarter stood at Rs. 428.0 crore; profit after tax at Rs. 66.9 crore
  
• Consolidated total income for the half year stood at Rs. 850.9 crore; profit after tax at Rs. 143.5 crore
  
• Declared second interim dividend of Rs. 6 per share.
  

The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for the second quarter and half year ended June 30, 2019.

CRISIL’s consolidated income from operations for the quarter ended June 30, 2019, was Rs 415.8 crore, compared with Rs 436.1 crore in the corresponding quarter of 2018. Consolidated total income for the quarter ended June 30, 2019, was Rs 428.0 crore, compared with Rs 453.4 crore in the corresponding quarter of 2018. Consolidated profit after tax for the quarter ended June 30, 2019, was Rs 66.9 crore, compared with Rs 77.1 crore in the corresponding quarter of 2018.

For the six months ended June 30, 2019, consolidated income from operations was Rs 831.6 crore, compared with Rs 856.0 crore in the corresponding period of the previous year. Consolidated total income was Rs 850.9 crore, compared with Rs 881.0 crore in the corresponding period of the previous year. Consolidated profit after tax was Rs 143.5 crore, versus Rs 159.3 crore in the corresponding period of the previous year.

Adverse foreign exchange movement impacted profitability for both the quarter and six months ended June 30, 2019, compared with the corresponding periods 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 ended December 31, 2019.

Ashu Suyash, Managing Director & CEO, CRISIL, said, “We saw continued growth across our ratings and advisory businesses. In the research segment, there was moderation as the Risk & Analytics business saw impact from changing regulatory stance, particularly in the US. We are in an advanced stage of augmenting our products and solutions suite, creating new avenues to meet emerging client needs.”

The Ratings business maintained growth momentum this quarter by focussing on new client acquisition, and continued traction in the securitisation market. The business saw strong year-on-year growth in corporate bond ratings with year to date issuances higher versus same period last year. Our steadfast and sharp focus on analytical rigour, independence and high quality of ratings helped reinforce our differentiated position in the credit ratings industry, even as the non-banking sector was hit by a crisis late last year. Global Analytical Center continued to work closely with S&P Global and grew on the backof increased support given their entry into China. However, overall, growth in the ratings segment was moderated by a drop in number of issuances for bank loan ratings.

In the research segment, the Financial Research business saw good traction in areas such as ESG (environmental, social and governance), data analytics, and automation-based solutions. Revenue growth in the India Research business was driven by enhanced offerings that support credit and investment decisions. Coalition continued strong growth trajectory through new client adds. The business also launched a comprehensive service combining cost and capital benchmarking during the quarter. Overall, growth for research segment was offset by maturing regulations in the US, which impacted demand for certain risk and regulatory support services such as Comprehensive Capital Analysis and Review.

In the Advisory segment, wholly owned subsidiary CRISIL Risk and Infrastructure Solutions Ltd wonmany prestigious mandates during the quarter. The business saw sustained growth, driven by solutionsfor sales productivity, credit risk, and regulations both in India and the Middle East.

The company continues to sharpen focus on automation and process-streamlining to drive costefficiencies.

CRISIL continued to deepen its franchise in India and globally through client/investor fora and publications on a variety of topics including macro-economic outlook, and securitisation and model risk management, to name a few. Whitepapers on areas such as credit risk and money laundering were also published. We also hosted a series of webinars on a range of areas including auto, telecom, textile, power, and stressed assets.

CRISIL Foundation’s Mein Pragati Assam project was selected to receive the National CSR Award, 2018 in the sub-category ‘Corporate Awards in CSR in Challenging Circumstances for North East. Under the RBI MoneyWise Centres for Financial Literacy project, the foundation completed outreach to 25,000 additional beneficiaries across Maharashtra and Haryana.