CRISIL gains after reporting decent Q3 results

CRISIL rose 1.29% to Rs 2,011.40 at 12:40 IST on BSE after the company announced that consolidated net profit rose 8.1% to Rs 76.87 crore on 14.09% rise in total income to Rs 374 crore in Q3 September 2015 over Q3 September 2014.

The company announced results on Saturday, 17 October 2015.

Meanwhile, the BSE Sensex was up 101.51 points, or 0.37%, to 27,316.11.

On BSE, so far 1,618 shares were traded in the counter, compared with an average volume of 2,231 shares in the past one quarter.

The stock hit a high of Rs 2,019.40 and a low of Rs 1,993.10 so far during the day. The stock hit a record high of Rs 2,365 on 17 April 2015. The stock hit a 52-week low of Rs 1,761 on 21 October 2014.

The stock had outperformed the market over the past one month till 16 October 2015, rising 10.42% compared with 4.82% rise in the Sensex. The scrip had also outperformed the market in past one quarter, falling 0.4% as against Sensex's 4.33% decline.

The large-cap company has an equity capital of Rs 7.15 crore. Face value per share is Re 1.

CRISIL said that the overall operating environment continued to remain sluggish during Q3 September 2015. However, the capital markets saw an increase in activity with companies refinancing debt driven by transmission of policy rate cut by the Reserve Bank of India. With interest rates declining, the company expects a pick-up in issuances of short to medium term debt.

CRISIL announced interim dividend of Rs 5 per share for the year ending 31 December 2015 (FY 2015).

CRISIL said that the board of directors of the company at its meeting held on 17 October 2015 approved the Scheme of Amalgamation of its three wholly owned subsidiary companies, viz., Pipal Research Analytics and Information Services India, Coalition Development Systems (India) and Mercator Info-Services India with the company and their respective shareholders and creditors. The appointed date for the merger shall be 1 April 2016. As per the Scheme, no shares are proposed to be issued pursuant to the merger, since all the transferor companies are wholly-owned subsidiary companies of the company. The Scheme is subject to requisite consent of the High Court at Bombay, the permission or approval of the stock exchanges or any other statutory or regulatory' authorities or institution(s), which by law may be necessary for the implementation of the Scheme.

CRISIL also said that the board of directors of the company at its meeting held on 17 October 2015 approved the proposal to invest in financial technology companies in areas/sectors that are deemed strategic for CRISIL. A committee of senior executives has been designated to identify companies, evaluate and finalise actual investment proposals and decide the optimum methodology for the investments. The board has approved an investment of upto Rs 30 crore for such investments.

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services.

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