Highlights for quarter and nine months ended September 30, 2022:

• Income from operations for the quarter up 19.6%, and for the nine months up 22.1%
• Profit after tax for the quarter up 31.0%, and for the nine months up 36.7%
• Interim dividend of Rs 10 per share recommended
  

The Board of Directors of CRISIL Limited at its meeting today approved the unaudited financial results for the third quarter ended September 30, 2022 (Q3 2022).

CRISIL’s consolidated income from operations rose 19.6% to Rs 683.0 crore in Q3 2022, compared with Rs 571.0 crore in the corresponding quarter of the previous year. Consolidated total income was up 23.9% to Rs 748.2 crore in Q3 2022, compared with Rs 603.8 crore in the corresponding quarter of the previous year. Profit after tax increased 31.0% to Rs 147.9 crore in Q3 2022, compared with Rs 112.9 crore in the corresponding quarter of the previous year.

CRISIL’s consolidated income from operations for the nine months ended September 30, 2022 (YTD 2022), rose 22.1% to Rs 1,946.5 crore, compared with Rs 1,594.7 crore in the corresponding period of the previous year. Consolidated total income was up 24.3% to Rs 2,067.1 crore in YTD 2022, compared with Rs 1,662.9 crore in the corresponding period of the previous year. Profit after tax increased 36.7% to Rs 406.4 crore in YTD 2022, compared with Rs 297.2 crore in the corresponding period of the previous year.

Sharp foreign exchange movement in the dollar versus the rupee and the British pound supported profitability in both Q3 2022 and YTD 2022, compared with the corresponding periods of the previous year. This includes Rs 19.5 crore from revaluation of subsidiary loan in Q3 2022 (Rs 35.4 crore YTD 2022).

The Board of Directors has declared an interim dividend of Rs 10 per share (of Re 1 face value) for Q3 2022, compared with Rs 9 per share for the same quarter last year.

Says Amish Mehta, Managing Director & CEO, CRISIL, “Globally, focus is on taming inflation even as downside risks to growth rise amid continuing geopolitical uncertainties. We are seeing a very rare occurrence where inflation is higher in the advanced economies than many emerging markets. Navigating these challenges, we delivered growth across our businesses in Q3 2022. We saw momentum for bank loan ratings in India, but corporate bond issuances were muted. There was traction in our global businesses. Continued investments in technology and talent remains a priority for us as we deliver value to all our stakeholders.”

Increased working capital requirements and stronger bank balance sheets are leading to a surge in bank credit growth, mainly in the services and MSME sectors. By contrast, corporate bond issuances by quantum saw 3% degrowth on-year in Q3 2022, while the number of capital markets issuers fell 14%.

In this environment, CRISIL Ratings saw 10.9% growth in revenue in Q3 2022, driven by new client additions and continued momentum in surveillance revenue. The business continues to strengthen its market-leading position in the corporate ratings market driven by investor preference for best-in-class ratings.

During the quarter, Global Analytical Centre (GAC) increased support to S&P Global Ratings across surveillance and transformation projects.

Overall, the Ratings Services segment grew 13% on-year in Q3 2022.

The Research, Analytics & Solutions 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 several client wins. GBA closed major renewal deals and rolled out the Client Intelligence platform for global banks.

The non-rating India businesses have been consolidated under CRISIL Market Intelligence and Analytics (MI&A) following the merger of CRISIL Risk and Infrastructure Solutions Limited and Pragmatix Services Private Limited with CRISIL Limited.

MI&A business saw traction for its credit risk and regulatory reporting solutions.

Overall, the Research, Analytics & Solutions segment grew 22% on-year in Q3 2022.

We continue to ramp up our digital and foundational infrastructure, with sharp focus on cloud quotient and information security.

During the quarter, CRISIL Ratings hosted webinars on the microfinance, power, retail, steel, consumer durables, pharmaceuticals, cement and banking sectors, and continues to publish thought leadership reports with unique data insights.

CRISIL GBA announced the 2022 Greenwich Leaders: Asian Large Corporate Trade Finance, and awarded Greenwich Share, Quality and Excellence awards to 23 banks across the region. CRISIL GR&RS published a whitepaper focused on Interbank Offered Rate (IBOR) transition challenges.

CRISIL MI&A hosted an exclusive leadership conclave with Paul Gruenwald, Global Chief Economist, S&P Global for large India-based financial institutions and corporates.

CRISIL Foundation bagged the prestigious National Corporate Social Responsibility (CSR) Award 2020, in the category ‘Corporate Awards for Excellence in CSR’ for efforts in financial capability building (Mein Pragati, Pilot Centre for Financial Literacy) and environment conservation (CRISIL RE).