Highlights for quarter and half year ended June 30, 2024:

• Income from operations for the quarter up 3.4%, and for the half year rose 3.3%
• PBT for the quarter up 6. 7%, and for the half year rose 3.8%
• Interim dividend of Rs 8 per share declared.
  

The Board of Directors of CRISIL Ltd, at its meeting today, approved the unaudited financial results for the second quarter ended June 30, 2024 (Q2 2024).

CRISIL's consolidated income from operations rose 3.4% to Rs 797.4 crore in Q2 2024, compared with Rs 771.0 crore in the corresponding quarter of the previous year. Consolidated total income was up 3.4% to Rs 815.4 crore in Q2 2024, compared with Rs 788.8 crore in the corresponding quarter of the previous year. Profit before tax increased 6.7% to Rs 208.0 crore in Q2 2024, compared with Rs 195.0 crore in the corresponding quarter of the previous year.

CRIS I L's consolidated income from operations for the half year ended June 30, 2024 (H1 2024), rose 3.3% to Rs 1,535.0 crore, compared with Rs 1,485.9 crore in the corresponding period of the previous year. Consolidated total income was up 3.5% to Rs 1,574.2 crore in H 1 2024, compared with Rs 1,521 .0 crore in the corresponding period of the previous year. Profit before tax increased 3.8% to Rs 403.5 crore in H1 2024, compared with Rs 388.6 crore in the corresponding period of the previous year.

The Board of Directors declared an interim dividend of Rs 8 per share (of Rs 1 face value) in the current quarter for the financial year ending December 31, 2024, compared with Rs 8 per share declared during the corresponding quarter of the previous year.

Says Amish Mehta, Managing Director and CEO, CRISIL Ltd, "Global GDP growth is holding up, with the U.S. and India leading the way. India's economy will continue to be on a robust growth trajectory. Fueled by investments in physical and digital infrastructure, both manufacturing and services are set to drive growth opportunities in India. While there is optimism, the ongoing economic uncertainty has prompted a cautious stance on discretionary spending by global clients. Our businesses showed resilience and growth, prioritizing foundational capabilities through our people and digital initiatives, underscoring our commitment to long-term value creation for stakeholders."

India's gross domestic product (GDP) grew by a higher-than-expected 8.2% in fiscal 2024. High-frequency data, such as the Purchasing Managers Index (PMI) and tax collections in April-May, indicate that the current fiscal has begun on a healthy note. However, CRISIL expects India's GDP growth to moderate to 6.8% in the current fiscal due to high interest rates and fiscal consolidation. The US Federal Reserve and the RBI are expected to implement rate cuts in the latter part of 2024.

Bank credit growth continued on a steady path, rising by 16.1 % in Q2, supported by the retail and services sectors, while large industry credit growth was tepid at 7.1 %. Bond issuances remained sluggish in Q2 due to the high interest rate environment, with a 36% year-on-year decline.

The revenue of CRISIL Ratings grew 10.7% on-year in 02, maintaining its leading position in the corporate ratings market, driven by investor preference for best-in-class ratings.

CRISIL ESG Ratings & Analytics Limited, a wholly owned subsidiary, received approval as Category 1 provider of ESG ratings in India.

The Global Analytical Centre (GAC) witnessed growth in delegation of ratings surveillance work and demand for support in new areas from S&P Global.

Overall Ratings business grew 11.4% on-year in 02.

Global Research and Risk Solutions (GR&RS) was impacted in 02, due to curtailed discretionary spending by global clients. The business saw momentum in lending solutions and regulatory support. Global Benchmarking Analytics (GBA) continues to focus on deepening client engagement and developing new analytical solutions. The businesses added new logos during the quarter.

Market Intelligence & Analytics (Ml&A) saw traction for credit, risk, data and analytics, and consulting offerings.

CRISIL was recognized as a 'Category Leader' in Chartis RiskTech Credit Risk Management Solutions 2024 for both the Banking Book and Trading Book categories.

Overall Research, Analytics & Solutions business grew 0.8% on-year in 02

Franchise activity continued well during the quarter. CRISIL hosted the 2nd Annual Ratings Infrastructure Summit titled 'Surging on Policy Pivot' and the Ratings Conclave - Pune chapter. It published reports on the ratings round-up for H2FY24, and the airlines, lnvlTs, and REITs sectors, and hosted webinars on thermal power, IT, credit funding, and the chemical sectors. Ml&A hosted webinars covering the EV, auto and auto component sectors, and diversified engineering, procurement, and construction (EPC) companies.

GR&RS hosted a panel discussion in New York on credit portfolio monitoring and published reports on commercial real estate, private capital markets, covenant monitoring, and ESG data monitoring. GBA published insights on market structure and technology in equities, fixed income and FX trading, bond markets, treasury bills, commercial lending, and corporate banking.

CRISIL Foundation expanded its outreach to more than 3 lakh rural community members in 02, resulting in over 1.4 lakh linkages to various financial services and social security schemes in Assam and Rajasthan under the flagship 'Mein Pragati' programme.