CRISIL PAT jumps 36% YoY in Q2 2022

CRISIL reported 35.8% increase in consolidated net profit to Rs 136.9 crore in Q2 2022, compared with Rs 100.8 crore in the corresponding quarter of the previous year.

Consolidated income from operations rose 26.5% to Rs 668.5 crore in Q2 2022, compared with Rs 528.5 crore in the corresponding quarter of the previous year. Consolidated total income was up 27.9% YoY to Rs 703.8 crore in Q2 2022.

The board of directors has declared an interim dividend of Rs 8 per share in the current quarter for the financial year ending December 31, 2022, compared with Rs 8 per share declared during the corresponding quarter of the previous year.

Amish Mehta, Managing Director & CEO, CRISIL, said: The hawkish response of central banks to elevated inflation worldwide has put significant pressure on global growth. We expect current headwinds to strengthen given volatile commodity prices, and geopolitical uncertainties.

Despite the challenging environment, we saw growth across businesses during Q2 2022, with strong demand for bank loan ratings in India, and for benchmarking and risk solutions in global market. We continue to ramp up investments in talent and technology to build capabilities for providing differentiated solutions to clients.

CRISIL said that Q2 2022 was marked by a sharp rise in inflation globally, including in India. The Reserve Bank of India raised the repo rate twice in response. Commodity prices continue to be elevated, and investor appetite for domestic capital market issuances remains subdued.

Corporate bond issuances (by quantum) declined 28% on-year in Q2 2022, and the number of capital markets issuers fell 32%. Securitisation transactions, however, rebounded as non-banks preferred the route to raise resources. Bank credit grew with lending rates hovering below pre-pandemic levels.

Amid the challenging credit environment, CRISIL Ratings revenue rose 20% in Q2 2022, driven by increased traction in bank loan ratings.

The Ratings segment grew by 16.5% during Q2 2022. Global Analytical Centre (GAC) strengthened analytical support across surveillance and ESG, and contributed to transformation initiatives for S&P Global Ratings Services.

The Research segment revenue grew by 32.1% in Q2 2022. The Research segment continued its strong performance with growth being driven by both global businesses Global Research & Risk Solutions (GR&RS) and Global Benchmarking Analytics (GBA).

The Advisory segment grew its revenue by 9.7% in Q2 2022. Infrastructure Advisory logged robust revenue growth via key project wins in the roads, transport, BFSI and commodities space.

CRISIL is a global analytics company. It is India's foremost provider of ratings, data, research, analytics and solutions.

The scrip fell 1.81% to currently trade at Rs 3237.25 on the BSE.

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