Highlights for quarter and year ended December 31, 2022:

• Income from operations up 16.5% for the quarter, and 20.3% for the year
• Profit before exceptional items and tax up 15.3% in the quarter, and 29.6% for the year
• Final dividend of Rs 23 per share recommended. Total dividend of Rs 48 per share for the year 2022 vs Rs 46 per share previous year
  

The Board of Directors of CRISIL Ltd, at its meeting today approved the audited financial results for the quarter and year ended December 31, 2022.

CRISIL’s consolidated income from operations for the quarter ended December 31, 2022, rose 16.5% to Rs 822.3 crore, compared with Rs 706.0 crore in the corresponding quarter of the previous year. Consolidated total income for the quarter ended December 31, 2022, was up 16.8% to Rs 840.6 crore, compared with Rs 719.5 crore in the corresponding quarter of the previous year.

Profit before exceptional items and tax for the quarter ended December 31, 2022, rose 15.3% to Rs 207.0 crore, compared with Rs 179.5 crore in the corresponding quarter of the previous year. Profit after tax (excluding impact of exceptional item) for the quarter ended December 31, 2022, was up 17.5% to Rs 158.0 crore, compared with Rs 134.5 crore in the corresponding quarter of the previous year.

CRISIL’s consolidated income from operations for the year ended December 31, 2022, rose 20.3% to Rs 2,768.7 crore, compared with Rs 2,300.7 crore in the corresponding period of the previous year. Consolidated total income for the year ended December 31, 2022, was up 22.1% to Rs 2,907.8 crore, compared with Rs 2,382.4 crore in the corresponding period of the previous year.

Profit before exceptional items and tax for the year ended December 31, 2022, increased 29.6% to Rs 742.4 crore, compared with Rs 572.6 crore in the corresponding period of the previous year. Profit after tax (excluding impact of exceptional item) for the year ended December 31, 2022, increased 30.7% to Rs 564.4 crore, compared with Rs 431.7 crore in the corresponding period of the previous year. Profit before tax for the quarter and year ended December 31, 2021, includes exceptional item of Rs 45.8 crore towards profit on sale of property.

Sharp movement in the US dollar versus the Rupee and the British pound supported profitability in the year ended December 31, 2022, which includes Rs 30.1 crore from revaluation of subsidiary loan. The fourth quarter saw appreciation in the British pound versus US dollar, resulting in an adverse impact (including Rs 5.3 crore loss from revaluation of subsidiary loan).

For the year ended December 31, 2022, the company paid three interim dividends totalling Rs 25 per equity share of face value of Re 1 each. The Board of Directors has recommended a final dividend of Rs 23 per share (of Re 1 face value). The total dividend for the year works out to Rs 48 per share.

Says Amish Mehta, Managing Director & CEO, CRISIL, “Global economic activity held up well in the December quarter with inflation showing signs of peaking. We saw growth across our businesses. The looming slowdown in the global economy, particularly in the US and Europe, is expected to manifest next fiscal, as will the effect of the raft of rate hikes because monetary policy impacts with a lag. India’s growth cycles are quite synchronised with advanced economies now. We remain committed to making an impact through investments in technology and talent for creating new products and solutions.”

Overall bank credit continued to grow owing to traction in the large corporate, micro, small and medium enterprises, and retail segments. Corporate bond issuances recovered in the quarter after a sluggish run.

CRISIL Ratings saw momentum in bank loan ratings. Overall revenue was up 9.1% on-year in the quarter, and 13.0% in 2022.

Global Analytical Center (GAC) continued to drive surveillance support across the analytical practices of S&P Ratings, and partnered on data and technology transformation programs.

The Ratings segment grew 9.3% in the quarter and 12.0% for the year ended December 31, 2022.

The Global Research & Risk Solutions (GR&RS) business saw increasing demand across service lines as sales and trading activity remained robust despite market volatility. There was good traction in sustainability and risk solutions.

The Market Insights & Analytics (MI&A) business saw continued traction for its proprietary credit risk solution and demand for research and consulting services.

Global Benchmarking Analytics saw momentum in corporate and investment banking (CIB) driven by enhanced client engagement.

The research, analytics and solutions segment grew 18.6% in the quarter and 23.2% in year ended December 31, 2022.

The ramp-up of our digital and foundational infrastructure continues, with sharp focus on cloud quotient and information security.

The year saw CRISIL once again being certified as a Great Workplace™ by the Great Place to Work® Institute, and named in the 100 Best Companies for Women in India.

During the quarter, franchise activity kept momentum. CRISIL Ratings held webinars on credit quality outlook, non-banking finance companies, commercial real estate, media and entertainment industry, and the aluminium sectors. CRISIL MI&A hosted the second edition of the India Investment Conclave and released a thematic report titled, ‘The big shift in financialisation’. It also hosted a CEO roundtable titled ‘Emergence of Integrated Logistics Service Providers’. CRISIL was also a knowledge partner for ASSOCHAM’s '2nd Green Investment & Sustainability Summit'. CRISIL GR&RS hosted a roundtable titled, 'The coming of age of APAC Private Credit — Evolution, opportunities and challenges'. The business won the RiskTech100 ® award in the Model Validation category. CRISIL GBA published reports on the FTX collapse, credit ETF trends, and capital markets trade lifecycle.

CRISIL Foundation certified over 500 women grassroots-trainers as ‘GramShakti Sakhis’ at a convocation organised in Guwahati in November 2022, underscoring CRISIL’s commitment to promoting financial inclusion in the North-East India.