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CRISIL declines after weak Q2 numbers

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Capital Market
Last Updated : Jul 21 2014 | 11:56 PM IST

CRISIL lost 2.67% to Rs 1934.40 at 10:34 IST on BSE after consolidated net profit declined 4.44% to Rs 57.83 crore on 14.8% growth in income from operations to Rs 305.13 crore in Q2 June 2014 over Q2 June 2013.

The Q2 result was announced after market hours on Friday, 18 July 2014.

Meanwhile, the S&P BSE Sensex was up 173.53 points or 0.68% at 25,815.09.

On BSE, so far 1,198 shares were traded in the counter as against average daily volume 3,022 shares in the past one quarter.

The stock hit a high of Rs 1,950 and a low of Rs 1,910 so far during the day. The stock had hit a record high of Rs 2,100 on 8 July 2014. The stock had hit a 52-week low of Rs 975.15 on 5 August 2013.

The stock had outperformed the market over the past one month till 18 July 2014, surging 12.87% compared with Sensex's 1.57% rise. The scrip had also outperformed the market in past one quarter, advancing 60.64% as against Sensex's 13.31% rise.

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The large-cap company has equity capital of Rs 7.10 crore. Face value per share is Re 1.

CRISIL attributed the decline in bottom line during the quarter to adverse foreign exchange movement.

CRISIL said that the overall operating environment both in India and globally was challenging with mild signs of recovery in the second quarter of 2014.

The business environment for Ratings continued to be subdued during the quarter with limited activity in the bond markets and in securitisation, CRISIL said. Despite the environment, Ratings' segment revenue rose 10.8% over the corresponding quarter of the previous year, driven by strong growth in small and medium enterprise and bank loan ratings, it added. The expected improvement in the policy and business environment should lead to a pick-up in fund raising activity, CRISIL said in a statement.

CRISIL Global Research and Analytics (GR&A) registered a healthy growth in the quarter. Coalition witnessed strong growth in revenues from products launched over the last year, the company said. The quarter saw significant client additions for model validation, stress testing, and comprehensive capital analysis review (CCAR) support to global banks, CRISIL said. Also, the additions of buy-side clients contributed to growth during the quarter, it added. However, the global banking industry continues to remain stressed with renewed focus on cost management and recovery of industry, CRISIL said in a statement.

The India research business witnessed moderate growth as the slowdown in investments and profitability pressures on clients continued in this quarter, CRISIL said in a statement.

CRISIL Risk and Infrastructure Solutions (CRIS), a wholly owned subsidiary of CRISIL maintained growth momentum by continuing to build a strong order book during the quarter, the company said. Both the infrastructure advisory and the risk solutions businesses won prestigious mandates in India and abroad, CRISIL said in a statement.

CRISIL's board of directors at its meeting held on Friday, 18 July 2014, declared payment of second interim dividend of Rs 3 per share for the financial year ending 31 December 2014.

CRISIL is a global analytical company providing ratings, research, and risk and policy advisory services. CRISIL's majority shareholder is Standard and Poor's (S&P). Standard & Poor's, a part of McGraw Hill Financial, is the world's foremost provider of credit ratings.

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First Published: Jul 21 2014 | 10:32 AM IST

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