Crisil Q3 net jumps 30% to Rs 90 cr on new client additions

The S&P-controlled domestic rating agency Crisil Ratings Tuesday reported a 30 per cent growth in net income at Rs 90 crore, driven by new new client additions and focus on efficiencies in the September quarter.

Total income rose 10 per cent during the third quarter at Rs 454.22 crore, while consolidated income from operations inched up 4 per cent to Rs 425.46 crore, the company said in a statement.

It declared an interim dividend of Rs 7 per share. Crisil attributed new client additions and ongoing focus on efficiencies for the 30 per cent growth in profit after tax at Rs 90.01 crore from Rs 69.42 crore in the corresponding quarter of the previous year.

For the nine months to September, its consolidated income from operations rose 5 per cent to Rs 1,281.46 crore, while consolidated total income rose 8 per cent to Rs 1,335.20 crore boosting net income 19 per cent to Rs 249.35 crore.

"During the quarter, our sharp focus on driving superior customer value and relevant analytics enabled us to grow existing relationships and add new clients across businesses in a tough macro environment," said Ashu Suyash, managing director and chief executive.

"Our continued focus on quality, and building new tools and analytics while commercialising existing products and solutions, will help us grow in a market that is likely to see continued headwinds," she added.

Revenue from ratings was driven by healthy growth in bank loan ratings, partially offset by a decline in corporate bond issuances following a rise in yields, she said, adding as of end-August, wholesale credit grew by 11.5 per cent against a muted 1.7 per cent growth in the same period last year. On the other hand, during the first nine months of calendar 2018, bond issuances dropped 38 per cent from a growth of 24 per cent a year ago.

Growth in the advisory segment was led by Pragmatix Services, which was acquired earlier this year.