Crisil has posted a 26.53 per cent drop in net profit in the first half (H1) of 2000-2001 to Rs 4.48 crore from Rs 6.10 crore in the previous corresponding period.
The drop was primarily owing to an 44.12 per cent increase in total expenditure from Rs 8.26 crore to Rs 12.43 crore and a sharp drop in the other income by nearly 70 per cent from Rs 2.23 crore to Rs 0.67 crore.
The second quarter profit also fell marginally from Rs 2.77 crore to Rs 2.28 crore.
The scrip closed at Rs 180 on the Bombay Stock Exchange yesterday against its previous close of Rs 189.85. It touched an intra-day high of Rs 185.
The income from Crisil's operations went up by 28.21 per cent from Rs 16.92 crore to Rs 21.69 crore. The rating services income increased from Rs 12.86 crore to Rs 16.21 crore, while advisory services income increased from Rs 2.02 crore.
However, the information services income fell to Rs 1.63 crore from Rs 2.03 crore.
The total income for the half year ended September, 2000, was Rs 22.38 crore against Rs 19.16 crore.
In the expenditure, staff, establishment and professional expenses went up by 27.85 per cent, 46.86 per cent and 234.21 per cent, due to the merging of subsidiary Cris Ltd with the parent.
"This has increased the burden on the expenditure front," said Hemant Joshi, executive director, Crisil.
The other income was lower by nearly 70 per cent due to the utilisation of treasury for acquisition of the business of Information Products Research Services India Private Ltd along with the brand INFAC and the purchase of new office premises.
"The treasury expenditure should recover by the year-end and should reflect in the following year's balance sheet," Joshi said.
Crisil's rating business witnessed a considerable pick up in the second quarter. The growth was primarily driven by increased corporate debt issuance in an effort to lock into the prevailing lower interest rates.
