This Rekha Jhunjhunwala-backed stock declares dividend of ₹7 per share, posts 20% growth in Q1 PAT
- CRISIL Ratings' performance was aided by higher corporate bond issuances (both, by quantum and the number of issuers) during the first quarter. Overall revenue was up 16.9% on-year in the quarter.
Rekha Jhunjhunwala is among the major public shareholders in the rating agency CRISIL which has garnered healthy growth across verticals in the first quarter of 2023. On Tuesday, CRISIL also declared a dividend of ₹7 per share for its shareholders. CRISIL posted nearly 20% YoY growth in PAT and a 19% YoY rise in total income. Also, the quarter witnessed appreciation in the Indian rupee and the British pound versus the US dollar, resulting in an adverse foreign exchange impact. CRISIL also expanded its footprint in Asia-Pacific with the acquisition of Peter Lee Associates.
CRISIL follows a calendar year to announce its financial earnings report.
In Q1 2023, on a consolidated basis, the company garnered a net profit of ₹145.8 crore, compared with ₹121.6 crore in the corresponding quarter of the previous year -- registering a growth of 19.8% YoY. While total income stood at ₹732.2 crore as against ₹615.1 crore in the same period a year ago -- resulting in a growth of 19.1% YoY.
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 is expected to manifest through domestic demand in the months ahead."
Mehta further added, "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."
Further, CRISIL pointed out that the quarter saw an 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.
Notably, CRISIL Ratings' performance was aided by higher corporate bond issuances (both, by quantum and the number of issuers) during the first quarter. Overall revenue was up 16.9% on-year in the quarter.
Its rating services segment recorded revenue growth of 16.1 % on-year in the quarter. While the Research, Analytics & Solutions segment grew by 21.7% on-year in the quarter.
On Tuesday, the company's board approved the payment of an interim dividend of ₹7 per share having a face value of Re 1 each for the financial year ending December 31, 2022. The dividend will be paid on May 16, 2023.
CRISIL expects India's GDP to grow 6.0% 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.
Late market mogul Rakesh Jhunjhunwala's wife Rekha Jhunjhunwala is among the largest public shareholders in CRISaIL. As of March 31, 2023, her shareholding stood at 4,000,000 equity shares or 5.5%. As per Trendylne data, Rekha's shareholding is valued at around ₹1,356 crore in CRISIL as of April 18, 2023. CRISIL is among her top 5 most valued stocks in terms of shareholding.
On BSE, CRISIL stock however closed at ₹3,380.45 apiece down by ₹149.10 or 4.22%.
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Business NewsCompaniesNewsThis Rekha Jhunjhunwala-backed stock declares dividend of ₹7 per share, posts 20% growth in Q1 PAT
First Published:18 Apr 2023, 08:24 PM IST
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