Rating agency CRISIL has reported a 15 per cent year-on-year rise in its net consolidated net profit at Rs 88.1 crore for the first quarter ended March 31, 2020 (Q1FY20), led by rise in revenue across ratings and research businesses. The company had posted consolidated net profit of Rs 76.6 crore in the March quarter of the previous financial year.
"While the advisory segment saw client wins in both infrastructure advisory and risk solutions, the slowdown in spending in India and delays in closure of contracts impacted performance during the quarter," CRISIL said in a filing to the Bombay Stock Exchange.
During the quarter under review, consolidated income from operations rose 2.9 per cent to Rs 427.8 crore, compared with Rs 415.8 crore in the corresponding quarter of 2019. Consolidated total income was up 9.4 per cent YoY at Rs 462.6 crore.
"Excluding Greenwich Associates LLC (Greenwich), consolidated total income for the March quarter rose 7.1 per cent and profit after tax jumped 26.8 per cent," CRISIL said in the exchange filing.
CRISIL completed the acquisition of Greenwich on February 26, 2020.
Commenting on earnings, CRISIL, MD & CEO, Ashu Suyash said, "While domestic slowdown signs were manifesting since the beginning of 2020, the COVID-19 pandemic has had a significant impact on society and economies, leading to a global recession and a very deep slowdown in India as indicated by the sharp downward revision in GDP estimates."
The ratings business posted 14.6 per cent YoY growth in revenue, driven by new client acquisition, and continued traction in securitisation transaction ratings, it said.
Research, the largest segment for CRISIL, grew its revenue 7.7 per cent, following a recovery in the Global Research & Analytics (GR&A) business, which was impacted last year because of changing demand in the risk services industry, it said.
CRISIL said that its board has declared first interim dividend of Rs 6 per equity share of face value of Rs 1 each, for the financial year ending December 31, 2020, which will be paid on May 19, 2020.
Meanwhile, CRISIL closed Wednesday's trade at Rs 1,419.90, up 1.22 per cent, against the previous close of Rs 1,420.2. The stock hit an intraday high of Rs 1,429.95 and intraday low of 1,383.65.