CRISIL Q1 PAT climbs 15% to Rs 88.12 cr

CRISIL reported 15% rise in consolidated net profit to Rs 88.12 crore on a 9.4% increase in total income to Rs 462.62 crore in Q1 March 2020 over Q1 March 2019.

Profit before tax (PBT) stood at Rs 116.77 crore in Q1 March 2020, up by 4% from Rs 112.30 crore in Q1 March 2019.

CRISIL completed the acquisition of 100% stake in Greenwich Associates LLC (USA) and its subsidiaries, on February 26, 2020, at a total value of $40 million, which includes upfront and deferred consideration. The results for the current quarter includes a revenue of Rs 9.7 crore and post-tax loss of Rs 9.1 crore, attributable to GA for the period February 26, 2020 to March 31, 2020.

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

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.

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.

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.

Ashu Suyash, Managing Director & CEO, CRISIL, said, 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 scrip was currently down 0.12% at Rs 1401.10. It has traded in the range of Rs 1383.65 and Rs 1418.95 so far during the day.

CRISIL operates a credit rating agency in India. The company specializes in the areas of risk identification, classification and assessment, across a broad spectrum of industries.

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