Highlights of the quarter ended September 30, 2019

• Consolidated total income for the quarter grew by 5.5% year-on-year, profit after tax up by 16.8%
  
• Net margin for the quarter grew by 210bps year-on-year basis
  
• Declared third interim dividend of Rs.7 per share
  

The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for the third quarter and nine months ended September 30, 2019.

CRISIL’s consolidated income from operations for the quarter ended September 30, 2019, was Rs 435.9 crore, compared with Rs 425.5 crore in the corresponding quarter of 2018. Consolidated total income for the quarter ended September 30, 2019, was Rs 479.4 crore, compared with Rs 454.2 crore in the corresponding quarter of 2018. Consolidated profit after tax for the quarter ended September 30, 2019, was Rs 105.1 crore, compared with Rs 90.0 crore in the corresponding quarter of 2018.

For the nine months ended September 30, 2019, consolidated income from operations was Rs 1,267.4 crore, compared with Rs 1,281.5 crore in the corresponding period of the previous year. Consolidated total income was Rs 1,330.3 crore, compared with Rs 1,335.2 crore in the corresponding period of the previous year. Consolidated profit after tax was Rs 248.6 crore, versus Rs 249.4 crore in the corresponding period of the previous year.

Adverse foreign exchange movement impacted profitability for both the quarter and nine months ended September 30, 2019, compared with the corresponding periods of the previous year.

The Board of Directors has declared a third interim dividend of Rs 7 per share (of Re 1 face value) for the financial year ended December 31, 2019.

Ashu Suyash, Managing Director & CEO, CRISIL, said, “Our focus continues to be on growing the core business through strong emphasis on quality, and by deepening presence across client segments. This has helped generate strong growth for our Ratings business in India and for Coalition business globally. In addition, we are beginning to see commercial benefits of our new offerings.”

Bond market issuances grew 18% by value on borrowings by highly-rated companies and financial institutions. Our ratings business continues to see strong growth momentum given our steadfast focus on new client acquisition, and a surge in securitisation transactions. The business strengthened its leadership position as its strong analytical credentials leveraged the increasing preference among issuers and investors for higher-quality ratings. Overall, the ratings segment grew by 16.2% from Rs122.9 crore to Rs 142.8 crore. Global Analytical Centre contributed to this by increasing support to S&P Global Ratings in the areas of surveillance and data modernisation programs.

In the Research segment, we saw growth for our offerings across data and credit analytics in the Indian market and our global benchmarking analytics for corporate and investment banking industry. We continued to deepen our presence with buy side clients and witnessed increased traction for credit risk. Overall growth for the segment was impacted as the risk and analytics space continued to see a decline in demand for traditional regulatory assignments such as Comprehensive Capital Analysis and Review, and Dodd Frank Annual Stress Testing. We have increased focus on newer offerings across model risk management, change management, and risk technology & analytics, which are seeing stronger demand.

The Advisory segment expanded its international footprint through wins from World Bank. The business also launched a new risk assessment model – ICON during the quarter.

CRISIL hosted its annual India Outlook seminar and the annual India Credit Spotlight Seminar jointly with S&P Global. CRISIL-AMFI Factbook 2019 was released at the AMFI Members Summit. In addition to a number of high-impact publications, CRISIL Fund Insight completed its 100th edition in the third quarter.

Mein Pragati, CRISIL Foundation’s flagship programme in Assam and Rajasthan, continued to work towards sustaining and deepening the impact in its second phase with the help of a trained cadre of over 600 community workers, expanding the coverage to over 250,000 women till date. We continue to focus on environment conservation, too. To date, we have planted over 22,000 trees, thereby eliminating carbon footprint equivalent to that of 1,000 individuals.

The company continues to focus on diversity and inclusion and for the fourth year in a row was recognised in Working Mother & Avtar 100 Best Companies for Women in India list. CRISIL also won the 2019 Working Mother & Avtar PUTHRI Award for excellence in CSR.