Synopsis: A ratings and analytics major has reported another quarter of healthy growth, with revenue and profit rising at a strong pace even as bond issuances in the broader market slowed sharply during the period.
The July results season has brought renewed attention to India’s analytics and ratings space, with one of the country’s oldest credit rating agencies posting a solid set of numbers for the latest quarter. The growth came even as corporate bond issuances fell during the period, pointing to strength drawn from other parts of the business. Here’s a closer look at what shaped the quarter.
Shares of Crisil Limited, with a market capitalization of Rs.32,191 Crore, closed at Rs.4,399.6 i.e. around 2.13% below its previous closing price of Rs.4,495.2. It trades at a P/E ratio of 37.17.
Revenue And Profit Both Move Up Sharply
Crisil’s Income from operations for the quarter stood at ₹1,075 crore, up 27.6% from ₹843 crore in the same quarter last year. Profit before tax rose 24.4% to ₹280 crore from ₹225 crore, while profit after tax grew 26.2% to ₹216 crore from ₹172 crore a year earlier.
For the first half of the financial year, income from operations came in at ₹2,133 crore, up 28.8% year-on-year, profit before tax rose 30.1% to ₹588 crore, and profit after tax climbed 35.7% to ₹450 crore.
Currency movement worked against the company this time. The quarter saw a net foreign exchange loss of ₹8.2 crore, compared with a gain of ₹14.4 crore in the previous quarter, though this was narrower than the ₹6.6 crore loss recorded in the same quarter last year. The board declared an interim dividend of ₹10 per share for the quarter, higher than the ₹9 per share paid in the same quarter of the previous year.
Ratings Business Grows Despite Weak Bond Market
Crisil’s ratings segment posted income from operations of ₹305.1 crore, up 21.4% year-on-year, while segment profit rose 31.1% to ₹135.2 crore, lifting the margin to 44.3% from 41.0% a year earlier.
This growth came even as corporate bond issuances in the broader market fell 26% year-on-year during the quarter, underlining continued investor preference for the company’s assessments. Its analytics centre also expanded the surveillance and operational support it provides to S&P Global Ratings, moving into areas beyond traditional ratings work.
Analytics Arm Sees The Sharpest Growth
The research, analytics and solutions segment, which covers the company’s banking-analytics and risk-solutions businesses, delivered the stronger growth this quarter. Income from operations rose 30.1% to ₹770.9 crore, and segment profit grew 32.9% to ₹157.1 crore, with margin improving slightly to 20.4% from 20.0%.
This growth was helped by continued momentum in corporate and investment banking, along with steady traction in commercial banking. Part of the jump also reflects an accelerated conversion of client deals in the previous quarter, as well as the contribution from a recent acquisition, both of which are now visible in this quarter’s and the half-year’s results.
Demand for credit lending solutions and fundamental research also held up well, as did interest in data analytics, consulting, and credit and risk solutions from corporates, government bodies, and financial institutions.
A Steady Backdrop In India’s Financial System
The broader operating environment stayed supportive. Gross non-performing assets in the Indian banking sector continued to decline, while mutual fund assets under management kept climbing through the quarter, both trends that typically favour research and analytics providers serving the financial sector. Bank credit growth also remained healthy, even as bond issuance volumes softened.
About The Company
Crisil operates as a global analytics organisation with businesses spanning independent credit ratings, data-driven consulting and risk solutions, and financial-services benchmarking. Headquartered in India, it serves banks, asset managers, corporates, and government bodies across more than 40 countries, and traces its roots back to 1987 as India’s first credit rating agency.
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