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CRISIL Q2 PAT up 52% YoY to Rs 100 cr

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Capital Market
Last Updated : Jul 21 2021 | 11:31 AM IST

On a consolidated basis, CRISIL recorded 51.9% increase in net profit to Rs 100.8 crore on 12% rise in income from operations to Rs 528.51 crore in Q2 June 2021 over Q2 June 2020.

The board of CRISIL has approved the payment of interim dividend of Rs 8 per equity share for the financial year ending 31 December 2021, which will be paid on 18 August 2021.

Ashu Suyash, managing director & CEO, CRISIL, said: "Our well-diversified business mix, and relentless focus on analytical excellence and customer experience enabled strong growth despite the pandemic-driven upheaval. While new wins and renewals helped grow core areas, our new offerings across credit and non-financial risk are enabling us to tap into the emerging needs of clients."

CRISIL said that the consumption demand across sectors of the Indian economy saw impact during the reporting quarter due to the second wave of the Covid-19 pandemic and consequent containment measures in various states. The quantum of bond issuances plunged 61% on-year, while the number of issuers dropped by a sharp 48%. Bank credit growth remained muted in both, the MSME and large-corporate sectors.

Amid the challenging credit landscape, revenue of Ratings was impacted, while the business continued to hold its leading position in the corporate bond market and added new clients during the quarter. On the new products front, the business saw traction across stressed assets and structured finance. The Global Analytical Centre continued its upward traction driven by increased coverage in analytical support, surveillance and transformation projects. Overall, the Ratings segment revenue de-grew 5.2%.

The Research segment had a strong quarter, growing its revenue by 20.2%, with all businesses in the segment delivering growth for the quarter. Global Research & Risk Solutions (GR&RS) saw good growth across model risk, traded risk, and non-financial risk. Buy-side research also saw uptick due to higher demand for research in alternative asset management.

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With Corporate and Investment Banking (CIB) industry's performance normalising, Coalition-Greenwich saw acceleration in business momentum during the quarter. Growth for the business was further aided by traction in non-CIB offerings, especially for commercial banking.

In the India Research business, growth was driven by continued demand for data, capital market-related insights and new products launched in funds and fixed-income. The business also launched Environmental, Social, Governance (ESG) scores for 225 Indian corporates across 18 sectors, which was well received by the market.

The advisory segment witnessed robust revenue growth of 14.0% during the quarter from new wins and pipeline conversion. The company's proprietary technology platforms in the Business Intelligence and Risk Solutions business continued to garner interest from clients.

CRISIL is a global analytics company. It provides ratings, data, research, analytics and solutions. It is majority owned by S&P Global Inc.

The CRISIL scrip fell 3.78% to end at Rs 2995.60 on the BSE yesterday.

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First Published: Jul 21 2021 | 10:58 AM IST

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