Highlights for the quarter ended March 31, 2020

• CRISIL Limited registers 9.4% growth in consolidated total income and 15.0% growth in profit after tax
  
• Growth led by Ratings and Research businesses
  
• Interim dividend of Rs 6 per share declared
  

The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for quarter ended March 31, 2020.

CRISIL’s consolidated income from operations for the quarter ended March 31, 2020, rose 2.9% to Rs 427.8 crore, compared with Rs 415.8 crore in the corresponding quarter of 2019. Consolidated total income for the quarter ended March 31, 2020, rose 9.4% to Rs 462.6 crore, compared with Rs 422.9 crore in the corresponding quarter of the previous year. Profit after tax for the quarter ended March 31, 2020, rose 15.0% to Rs 88.1 crore, compared with Rs 76.6 crore in the corresponding quarter of the previous year.

Excluding Greenwich Associates LLC (Greenwich), consolidated total income for the quarter ended March 31, 2020, rose 7.1% and profit after tax for the quarter ended March 31, 2020, rose 26.8%.

The Board of Directors has declared first interim dividend of Rs 6 per share (of Re 1 face value) for the financial year ended December 31, 2020.

Says Ashu Suyash, Managing Director & CEO, CRISIL, “While domestic slowdown signs were manifesting since the beginning of 2020, the Covid-19 pandemic has had a significant impact on society and economies, leading to a global recession and a very deep slowdown in India as indicated by the sharp downward revision in GDP estimates. Such unprecedented times call for extraordinary action. In the interest of employee health and safety, we moved to work-from-home ahead of it being made mandatory by the authorities. In addition, a number of measures were taken towards employee wellness and contribution to society. CRISIL stood steadfast throughout in serving clients with best-in-class insights, opinions and analytics. Our investments in people and technology over the years have ensured seamless operations helping deliver growth in an uncertain and difficult environment.”

The Ratings business maintained its growth momentum posting 14.6% year-on-year growth in revenue, driven by investor preference for best-in-class ratings, concerted effort towards new client acquisition, and continued traction in securitisation transaction ratings. The quarter saw new corporate groups becoming clients, and wins for independent credit evaluation offerings. Global Analytical Center (GAC) continued to play a crucial role in supporting key stakeholder S&P Global Ratings. Roles were added on the back of new assignments and continued support to S&P Global Ratings on its Environmental, Social, Governance (ESG) offerings.

Research, the largest segment for CRISIL, grew its revenue 7.7% following a recovery in the Global Research & Analytics (GR&A) business, which was impacted last year because of changing demand in the risk services industry. Model and traded risk offerings saw good traction with new project wins in the US and Europe. Growth in the India Research business was supported by the launch of new reports in industry research and an investment research module on Quantix, an integrated data and analytics platform. Coalition continued to see growth for its industry-leading client and competitor benchmarking analytics by expanding client relationships across the US, Asia and Europe.

CRISIL completed the acquisition of Greenwich Associates LLC (Greenwich) on February 26, 2020. The Research segment’s numbers, therefore, include pro rata performance of Greenwich. Excluding Greenwich, the research segment registered revenue growth of 3.8%, with a segmental profit growth of 3.3%.

While the Advisory segment saw client wins in both Infrastructure Advisory and Risk Solutions, the slowdown in spending in India and delays in closure of contracts impacted performance during the quarter.

In the wake of the pandemic, CRISIL proactively took measures to safeguard the health and interest of employees and all its stakeholders. Work-from-home was initiated for almost all employees across locations by ensuring remote connectivity and technology support. All businesses remain fully functional, serving the large and diversified client base worldwide as well as regulators and policymakers. CRISIL also launched a dedicated microsite to provide timely analyses and updates on Covid-19, including its impact on the economy, credit profiles, and sectors. A raft of impact reports, credit alerts and press releases on this theme have also been published. Whitepapers on Bank of England’s stress test results, and climate risk quantification, were also published.

CRISIL opened up its corporate kitchen at its Mumbai headquarters to prepare hygienic, nutritious meals for economically weaker sections impacted by the lockdown. These meals, are being distributed to migrant workers and most-affected communities. Starting with ~5,000 meals a day, the facility has been scaled up to provide 10,000 meals daily. In addition, under Mein Pragati, CRISIL Foundation’s flagship programme in Assam and Rajasthan, a dedicated helpline has been launched for its 750+ cadre of sakhis, or community workers. This helps them provide timely and relevant information to households under the program on how to stay safe and how to avail of the benefits available under the relief packages announced by the Government of India.