CRISIL gains 8% on 13% growth in Sept quarter net profit; Rs 15 dividend

CRISIL's consolidated net profit in Q3 2024 rose by 12.86 per cent Y-o-Y to Rs 171.55 crore

CRISIL shares jumped 8.2 per cent in trade on Thursday, October 17, and registered an intraday high of Rs 5,184.5 per share on BSE.

The buying in the stock came after the company announced its September quarter results, along with approval for the payment of a third interim dividend of Rs 15 per share. 

At around 9:32 AM, CRISIL shares were up 6.88 per cent at Rs 5,119 per share on the BSE. In comparison, the BSE Sensex was up 0.07 per cent at 81,557.27 at around the same time. The market capitalisation of the company around the same time stood at Rs 37,436.9 crore. 

On Wednesday, the credit ratings agency, which follows the calendar year to report its quarterly results, in its exchange filing stated that its consolidated net profit rose by 12.86 per cent year-on-year (Y-o-Y) to Rs 171.55 crore for the third quarter ended September 2024, compared to Rs 151.99 crore in the year-ago period. 

Further, the unit of S&P Global's board also declared an interim dividend of Rs 15 per share (of Rs 1 face value). It had announced a Rs 11 per share dividend during the corresponding quarter of the previous year.

Meanwhile, the company's consolidated total income climbed 7.9 per cent year-on-year (Y-o-Y) to Rs 833.2 crore in the quarter under review, from Rs 771.8 crore.

The revenue for the third quarter stood at Rs 811.84 crore, up 10.3 per cent Y-o-Y compared to Rs 735.87 crore in the year ago period. 
 

As per the company's exchange filing, during Q3 2024, the impact of foreign exchange movement was unfavourable compared to the same quarter last year. 

Management commentary 

Amish Mehta, managing director and CEO, CRISIL, said that geopolitical uncertainties remain a risk. 

Mehta added that CRISIL's businesses have demonstrated resilience, as they are "focusing on developing core capabilities through our (CRISIL's) domain-led IP and digital initiatives, and remain committed to creating long-term value for our stakeholders," he noted. 

Further, CRISIL plans on investing in new-age technologies, including GenAl, and has successfully deployed a GenAl Credit Assessment solution for its global clients.

In the past one year, CRISIL shares have gained 24 per cent, compared to the BSE Sensex's rise of 23 per cent during the same period. 

Meanwhile ICRA shares were also up 6 per cent on expectations that the overall sector will perform better.