CRISIL Limited: Unaudited financial results for the second quarter ended June 30, 2022

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  • Income from operations for the quarter up 26.5%, and for the half year up 23.4%
  • PAT for the quarter up 35.8%, and for the half year up 40.3%
  • Interim dividend of Rs 8 per share recommended

22 July 2022, New Delhi: Highlights for quarter and half year ended June 30, 2022:

The Board of Directors of CRISIL Ltd, at its meeting today, approved the unaudited financial results for the second quarter ended June 30, 2022 (Q2 2022).

CRISIL’s consolidated income from operations rose 26.5% to Rs 668.5 crore in Q2 2022, compared with Rs 528.5 crore in the corresponding quarter of the previous year. Consolidated total income was up 27.9% to Rs 703.8 crore in Q2 2022, compared with Rs 550.5 crore in the corresponding quarter of the previous year. Profit after tax increased 35.8% to Rs 136.9 crore in Q2 2022, compared with Rs 100.8 crore in the corresponding quarter of the previous year.

CRISIL’s consolidated income from operations for the half year ended June 30, 2022 (H1 2022), rose 23.4% to Rs 1,263.5 crore, compared with Rs 1,023.7 crore in the corresponding period of the previous year. Consolidated total income was up 24.5% to Rs 1,318.9 crore in H1 2022, compared with Rs 1,059.1 crore in the corresponding period of the previous year. Profit after tax increased 40.3% to Rs 258.5 crore in H1 2022, compared with Rs 184.3 crore in the corresponding period of the previous year.

The Board of Directors declared an interim dividend of Rs 8 per share (of Re 1 face value) in the current quarter for the financial year ending December 31, 2022, compared with Rs 8 per share declared during the corresponding quarter of the previous year.

Says Amish Mehta, Managing Director & CEO, CRISIL, “The hawkish response of central banks to elevated inflation worldwide has put significant pressure on global growth. We expect current headwinds to strengthen given volatile commodity prices, and geopolitical uncertainties. Despite the challenging environment, we saw growth across businesses during Q2 2022, with strong demand for bank loan ratings in India, and for benchmarking and risk solutions in global market. We continue to ramp up investments in talent and technology to build capabilities for providing differentiated solutions to clients.”

Q2 2022 was marked by a sharp rise in inflation globally, including in India. The Reserve Bank of India raised the repo rate twice in response. Commodity prices continue to be elevated, and investor appetite for domestic capital market issuances remains subdued.

Corporate bond issuances (by quantum) declined 28% on-year in Q2 2022, and the number of capital markets issuers fell 32%. Securitisation transactions, however, rebounded as non-banks preferred the route to raise resources. Bank credit grew with lending rates hovering below pre-pandemic levels.

Amid the challenging credit environment, CRISIL Ratings’ revenue rose 20% in Q2 2022, driven by increased traction in bank loan ratings. With the addition of new clients, the business continues to strengthen its market-leading position in corporate bond ratings, on account of investor preference for best-in-class ratings.

Global Analytical Centre (GAC) strengthened analytical support across surveillance and ESG, and contributed to transformation initiatives for S&P Global Ratings Services.

The Ratings segment grew by 16.5% during Q2 2022.

The Research segment continued its strong performance with growth being driven by both global businesses ― Global Research & Risk Solutions (GR&RS) and Global Benchmarking Analytics (GBA). GR&RS saw steady growth on the back of diversification in accounts and conversion of new opportunities. GBA grew by closing major renewal deals and signing up of new clients. India Research witnessed demand for fixed-income and industry-research reports.

The Research segment revenue grew by 32.1% in Q2 2022.

Infrastructure Advisory logged robust revenue growth via key project wins in the roads, transport, BFSI and commodities space. Business Intelligence and Risk Solutions benefited from regulatory focus on credit risk, and saw traction for products built on its proprietary platforms.

The Advisory segment grew its revenue by 9.7% in Q2 2022.

We continued to ramp up our digital and cloud quotient, and information security capabilities.

CRISIL Market Intelligence and Analytics hosted the second India ESG Leadership Summit with the theme ‘The Journey from Emergence to Business Relevance’. The event saw the launch of the second edition of the CRISIL Sustainability Yearbook, 2022, covering an assessment of over 575 Indian companies.

The business held an investment conclave on the theme, ‘The AIF opportunity beckons’ and launched the CRISIL AIF benchmarking report.

CRISIL Ratings hosted webinars on renewable energy, roads, textiles, NBFCs and IT. GBA held two webinars as a part of ‘Behind the Market Structure’ series. GR&RS published a whitepaper discussing ESG integration in fixed-income investing and held three webinars on sustainability and alternative credit.

CRISIL Foundation celebrated World Environment Day. Its efforts to increase financial literacy and women empowerment continue.

Also Read: China: Measures counter food security risks

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