The Board of Directors of CRISIL Limited, at its meeting today, approved the unaudited financial results for the third quarter ended September 30, 2012.
CRISIL’s consolidated total income for the nine months ended September 30, 2012, stood at Rs. 717.27 crore as against Rs. 592.18 crore in the corresponding period of previous year, an increase of 21.1 per cent. The net profit after tax for the nine months ended September 30, 2012 was Rs. 160.41 crore as against Rs. 150.61 crore, an increase of 6.5 per cent in the corresponding period of previous year. CRISIL’s consolidated total income for the quarter was Rs.270.98 crore, as against Rs. 210.41 crore in the corresponding quarter of the previous year, an increase of 28.8 per cent. The net profit after tax for the quarter was Rs. 59.73 crore as against Rs. 60.18 crore in the corresponding quarter of the previous year. CRISIL completed the acquisition of 100% of the equity shares of Coalition Development Limited, an UK- based Analytics Firm and its subsidiaries (Coalition) on July 4, 2012, and the financials for the quarter include that of Coalition. The Board of Directors has approved the payment of a third interim dividend of Rs.3 per share on shares of face value of Re. 1 each.
The operating environment in India, the US and Europe, the principal markets for CRISIL, remained challenging during the quarter with muted economic growth and weak overall investment climate in India and continued pressure on the global investment banking industry. Revenue growth, despite the challenging environment, was achieved through strong growth in CRISIL Global Research & Analytics (GR&A) business with the acquisition of Coalition and new client additions. In India, revenue growth was driven by Bank Loan Ratings, SME Ratings and a pick-up in the securitisation transactions at the end of the quarter. The domestic bond market remained muted. CRISIL Research business has been impacted by the slowdown in the economy and volatility in the capital markets.
During the quarter, CRISIL Research launched India’s first Small and Medium Enterprise (SME) Fundamental Grading service for SMEs proposing to raise equity capital through listing on SME exchanges. In the SME Ratings business, CRISIL expanded its reach and presence across the country. SMEs in 560 cities across the country now carry CRISIL ratings. CRISIL Global research & Analytics (GR&A) business, consisting of Irevna, Pipal and Coalition, remains a global leader and added several new clients during the quarter. CRISIL’s Global Analytical Centre (GAC), primarily comprising business with Standard & Poor’s (S&P), stayed on course to grow its services to S&P.
CRISIL continues to be recognised for its thought leadership. Opinion pieces on the “Outlook for Indian Economy”, “Sustaining the rural consumption boom”, “Loan restructuring by the Indian Banking Sector”, etc. have been recognised as insightful by all stakeholders including media, investors and key decision-makers in the country.
CRISIL Risk and Infrastructure Solutions Ltd. (CRIS), a wholly-owned subsidiary of CRISIL Ltd., houses CRISIL’s infrastructure advisory and risk solutions businesses. During the quarter, the infrastructure advisory business won key mandates in Urban and Power sector. CRISIL Risk Solutions (CRS) won key mandates from a large bank and leading non-banking finance company in India and a large oil company in the Gulf.
Note: Consolidated Profit and Loss Account includes accounts of CRISIL Limited and its wholly owned subsidiaries CRISIL Risk and Infrastructure Solutions Limited, Pipal Research Analytics and Information Services India Private Limited, CRISIL Irevna UK Limited, CRISIL Irevna US LLC, CRISIL Irevna Argentina S.A., CRISIL Irevna Poland Sp.Zo.o., CRISIL Irevna Information Technology (Hangzhou) Co. Limited, Coalition Development Systems (India) Private Limited, Mercator Info-Services India Private Limited, Coalition Development Limited UK, Coalition Development Singapore Pte Limited and proportionate share in income and expenses of joint-venture India Index Services and Products Limited.