Crisil net falls 17% to Rs 7.92 cr

Rating agency Crisil on Wednesday reported 17 per cent fall in net profit at Rs 7.92 crore in the first quarter ended March 31, 2006, as staff and establishment expenses rose sharply.

The figure was Rs 9.59 crore a year earlier. While staff expenses during the quarter rose to Rs 11.12 crore from Rs 6.33 crore, establishment expenses increased to Rs 4.02 crore as against Rs 2.62 crore.

A subsidiary of global rating agency Standard & Poor's, Crisil said its total income during the quarter was up five per cent to Rs 33.92 crore (Rs 32.27 crore).

Meanwhile, consolidated total income of the group registered 44 per cent surge to Rs 56.98 crore from Rs 39.68 crore a year earlier.

The group's net profit went up 10 per cent to Rs 8.92 crore as against Rs 8.11 crore a year earlier.

The consolidated figures include accounts of Crisil Research and Information Services, Crisil MarketWire, Global Data Services of India, Crisil Properties, Gas Strategies Group (UK) and its subsidiaries, Irevna Research Services, Irevna Ltd (UK) and its subsidiary.

Crisil said it maintained its leadership position in the domestic ratings business despite challenges. This was in the backdrop of lackluster domestic bond markets, aggressive bank lending and attractive overseas funding, corporate bond issuances dwindled sharply during the quarter.

Meanwhile, in a notice to the National Exchange Exchange, Crisil said the board of directors approved a proposal to set up a subsidiary in Latin America with an investment of up to $2.3 million.

The company would be a delivery centre for outsourced business sourced by Irevna. Irevna is a high-end analytical outsourcing services provider.

Crisil created market development and communications division during the quarter to strengthen Crisil and S&P's brand franchise in the country and to explore business opportunities for S&P in India and for Crisil abroad.