The Board of Directors of CRISIL Ltd, at its meeting on Tuesday approved the unaudited financial results for the first quarter ended March 31, 2023, the company announced through an exchange filing.
CRISIL's consolidated income from operations for the quarter ended March 31, 2023, rose 20.2 per cent to Rs 714.9 crore, compared with Rs 594.9 crore in the corresponding quarter of the previous year. Consolidated total income for the quarter ended March 31, 2023, was up 19.1 per cent to Rs 732.2 crore, compared with Rs 615.1 crore in the corresponding quarter of the previous year.
Profit before tax
Profit before tax for the quarter ended March 31, 2023, rose 14.4 per cent to Rs 193.6 crore, compared with Rs 169.3 crore in the corresponding quarter of the previous year. Profit after tax for the quarter ended March 31, 2023, was up 19.8 per cent to Rs 145.8 crore, compared with Rs 121.6 crore in the corresponding quarter of the previous year.
Foreign exchange impact
The quarter saw appreciation in the Indian rupee and the British pound versus the US dollar, resulting in an adverse foreign exchange impact, compared with foreign exchange gain in the corresponding quarter of the previous year.
Says Amish Mehta, Managing Director & CEO, CRISIL, "We saw growth across our businesses stemming from demand for insights and analytics, amid macro and global market uncertainties. Flanks of caution are building up because of the imminent slowdown in developed economies, and the lagged effect of past repo rate hikes expected to manifest through domestic demand in the months ahead. Global banking clients continue to focus on operational efficiency and spends related to regulatory requirements, sustainability and business transformation. We expanded our footprint in Asia-Pacific with the acquisition of Peter Lee Associates."
India's GDP to grow 6 per cent
CRISIL expects India's GDP to grow 6 per cent in fiscal 2024, with risks tilted to the downside. Slowing global growth is already reducing global demand for India's exports. On the other hand, healthy corporate balance sheets, a robust banking system, and the government's capex thrust will be supportive of domestic activity.
Corporate bond issuance
Corporate bond issuances in India grew 48 per cent by quantum in the first quarter on-year, and 8 per cent by number of issuers. Bank credit continues to grow well, leading to healthy uptick in bank loan ratings.
CRISIL Ratings performance was supported by higher corporate bond issuances (both, by quantum and number of issuers) during the first quarter. Overall revenue was up 16.9 per cent on-year in the quarter.
Global Analytical Center (GAC) saw robust surveillance work delegation by S&P Global Ratings.
The ratings services segment saw revenue growth of 16.1 per cent on-year in the quarter.
Global Research & Risk Solutions (GR&RS) witnessed momentum across research, credit risk and market risk solutions. The business also added new logos during the quarter.
Global Benchmarking Analytics (GBA) continues to strengthen its client engagement driven by need for granular, actionable analytics and intelligence among clients.
Given the current environment in the global financial sector, we expect increased regulatory oversight and cost pressures across our financial services clients.
Market Intelligence & Analytics (Ml&A) saw traction for its proprietary credit risk solutions, and momentum in sustainability, research and consulting offerings.
The Research, Analytics & Solutions segment grew 21.7 per cent on-year in the quarter.
Investments in technology and people continue since they are the foundation for growth. Franchise activity continued well during the quarter. CRISIL hosted the 7th edition of CRISIL's India Outlook Seminar, titled 'Rider in the storm'. The seminar saw the launch of the India Outlook Report 2023. CRISIL Ratings hosted webinars covering sectors such as capital goods, agrochemicals, renewables and telecom. Ml&A hosted a webinar on 'Focus areas to attract global ESG-aligned capital to India'. GR&RS co-hosted a webinar with the US based Professional Risk Managers' International Association (PRMIA) on Fundamental review of the trading book (FRTB) trends and challenges and published a report on the Silicon Valley Bank collapse. GSA released the Greenwich Leaders for Large Corporate Banking, Cash Management and Trade Finance in the US, Europe and Asia.
CRISIL Foundation celebrated completion of 1O years and launched livelihood projects for Mein Pragati sakhis in Rajasthan.
