CRISIL soars after PAT rises 53% YoY in Dec'21 quarter

CRISIL jumped 4.64% to Rs 2836.05 after the company reported 53.2% increase in consolidated net profit to Rs 168.6 crore on a 18.2% rise in consolidated income from operations to Rs 719.5 crore in Q4 December 2021 over Q4 December 2020.

CRISIL's consolidated income from operations for the year ended 31 December 2021, rose 16.1 % to Rs 2,300.7 crore, compared with Rs 1,981.8 crore in the corresponding period of the previous year. Profit after tax for the year ended 31 December 2021, increased 31.3% to Rs 465.8 crore, compared with Rs 354.7 crore in the corresponding period of the previous year.

The board of directors has recommended a final dividend of Rs 15 per share and a special dividend of Rs 7 per share.

Amish Mehta, Managing Director & CEO, CRISIL, said: "We witnessed growth across our businesses during the quarter. Global economies, including India, have been veering towards normalisation with demand recovering, even though inflationary pressures are elevated. Our focus on IP-led solutions and risk transformation helped us win new clients and increase our wallet share at key clients."

Activity in the lending markets improved in line with economic recovery. Companies increasingly sought to refinance debt and strengthened their liquidity positions. CRISIL Ratings continues to maintain market leading position in corporate bond ratings and added new clients during the quarter. The business also saw Increased penetration in the mid-corporate segment and traction for stressed asset offerings.

Revenue at CRISIL Ratings grew 16.8% YoY in the December quarter, and 7.5% in 2021.

Global Analytical Center (GAG) increased support to the analytical, sustainability and transformation projects of S&P Global Ratings Services. The Ratings segment revenue grew 9.5% YoY in the December quarter and 6.9% in 2021.

In Research, the Global Research & Risk Solutions (GR&RS) business saw client wins and continued to grow through the December quarter. There was increased demand for the company's offerings in the areas of regulatory reporting, product control, sustainability, and buy-side research. Investments in digital and regulatory-driven transformation agenda at financial institutions also spawned business opportunities.

The India Research business witnessed growth following the pick-up in economic activity. There was increased traction for data, insights, and capital market research offerings.

Revenue growth at Global Benchmarking Analytics was driven by deals with global corporate and investment banks. The Research segment revenue grew 21.5% YoY in the December quarter and 20.3% in 2021.

The Advisory segment saw good momentum with revenue growing 17.6% YoY in the December quarter and 14% in 2021. The business bagged large wins from multilaterals and expanded its overseas clients' footprint. The Business Intelligence and Risk Solutions business saw wins for its regulatory offerings, CRISIL said.

CRISIL is a global analytics company. It is India's foremost provider of ratings, data, research, analytics and solutions.

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