Highlights for quarter and nine months ended September 30, 2023:

• Income from operations for the quarter up 7. 7%, and for the nine months rose 14.1 %
  
• PBT for the quarter up 6.1%, and for the nine months rose 10%
  
• Interim dividend of Rs 11 per share declared
  

The Board of Directors of CRISIL Ltd at its meeting today approved the unaudited financial results for the third quarter ended September 30, 2023 (Q3 2023).

CRISIL's consolidated income from operations rose 7.7% to Rs 735.9 crore in third quarter of 2023 (Q3 2023), compared with Rs 683.0 crore in the corresponding quarter of the previous year. Consolidated total income was up 3.2% to Rs 771.8 crore in Q3 2023, compared with Rs 748.2 crore in the corresponding quarter of the previous year. Profit before tax increased 6.1 % to Rs 200.3 crore in Q3 2023, compared with Rs 188.8 crore in the corresponding quarter of the previous year. Profit after tax rose 2.8% to Rs 152.0 crore in Q3 2023, compared with Rs 147.9 crore in the corresponding quarter of the previous year.

CRISIL's consolidated income from operations for the nine months ended September 30, 2023, (year to date, or YTD 2023) was up 14.1 % to Rs 2,221 .8 crore, compared with Rs 1,946.5 crore in the corresponding period of the previous year. Consolidated total income was up 10.9% to Rs 2,292.9 crore in YTD 2023, compared with Rs 2,067.1 crore in the corresponding period of the previous year. Profit before tax increased 10% to Rs 588.9 crore in YTD 2023, compared with Rs 535.4 crore in the corresponding period of the previous year. Profit after tax increased 10.3% to Rs 448.3 crore in YTD 2023, compared with Rs 406.4 crore in the corresponding period of the previous year.

The impact of foreign exchange movement was less favourable on-year. Q3 2023 earnings include foreign exchange gain of Rs 13.3 crore (Rs 2.6 crore YTD 2023), compared with Rs 48.3 crore in Q3 2022 (Rs 82.3 crore YTD 2022). The previous year's results include foreign exchange gain of Rs 19.5 crore from revaluation of subsidiary loan in Q3 2022 (Rs 35.4 crore YTD 2022).

The Board of Directors declared an interim dividend of Rs 11 per share (of Rs 1 face value) in the current quarter for the financial year ending December 31, 2023, compared with Rs 10 per share in the corresponding quarter of the previous year.

Says Amish Mehta, Managing Director and CEO, CRISIL Ltd, "We saw growth across our businesses. The global macroeconomic outlook and geopolitical uncertainties are impacting growth and discretionary spending by financial institutions. Global banking clients are staying focused on driving growth, regulatory spending and business transformation. The medium-term prospects for India remain healthy with infrastructure spending the key driver. We continue to focus on client centricity and developing solutions through our high-quality talent, domain-led IP and digital transformation."

Q3 2023 was marked by transitory spike in inflation on account of food prices and erratic monsoon. Domestic demand has remained resilient despite headwinds from slowing exports and elevated interest rates. The infrastructure sector continues to benefit from large-scale government spending.

Corporate bond issuances declined in Q3 2023 after several quarters of robust growth because of elevated yields. The Bank Loan Ratings market was sluggish due to softer wholesale credit growth and higher interest rates. CRISIL Ratings maintained leadership in corporate bond ratings given investor preference for best-in-class ratings. Overall, revenue was up 12.1 % on-year in Q3 2023. Global Analytical Center (GAC) increased support to S&P Global Ratings across surveillance and innew areas in Q3 2023.

The ratings services segment saw revenue grow 9.1 % on-year in Q3 2023.

Global Research & Risk Solutions (GR&RS) witnessed traction for credit lending and regulatory change solutions. Global Benchmarking Analytics (GBA) saw the impact of slowdown in discretionary spending by global financial institutions. We continue to invest in building new products and solutions.

Market Intelligence & Analytics (Ml&A) saw momentum in its Credit and Risk, and Research and Consulting offerings.

The Research, Analytics & Solutions segment grew 7.3% on-year in Q3 2023.

Franchise activity continued well during Q3 2023. CRISIL Ratings launched its first edition of the Annual Infrastructure Summit, titled 'Revving roads and renewables'. It hosted webinars covering sectors such as data centres, organised retail, pharmaceuticals, power, steel, and trends in credit quality. Ml&A organised webinars on the cement and textiles sectors, conducted a 'Meet the Expert - ESG Series, on topics such as 'Is ESG a force for real change?

GR&RS published nine whitepapers and other reports covering themes such as enhancing banking architecture, sustainability, private markets, model risk, Basel Ill and climate risk. GBA published reports on FX dealer platforms, bond markets and treasury bills, the power of Al in asset management, a market insight on commercial lending, digital channels, and Indian corporates turning to big banks to fund growth.

CRISIL Foundation expanded its outreach to more than 1. 75 lakh rural community members in Assam and Rajasthan during Q3 2023 under its flagship 'Mein Pragati' programme. Under CRISIL RE, the environment conservation programme, tree plantation and water conservation activities were initiated in the Sundarbans in West Bengal and Udaipur in Rajasthan.