Home / Markets / Stock Markets /  CRISIL reports 35% growth in PAT, Board approves 800% dividend
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With a market valuation of 24,072.95 Cr, CRISIL is a large cap company that works in the finance industry. The financial report for the second quarter ending June 30, 2022, has been released by the firm. In Q2 2022, CRISIL's consolidated income from operations increased 26.5 per cent YoY to 668.5 crore from 528.5 crore in the same quarter of the previous year. In Q2 2022, total consolidated income increased by 27.9% YoY to 703.8 crore from 550.5 crore in the same quarter of the previous year. In Q2 2022, profit after tax (PAT) climbed 35.8% YoY to 136.9 crore from 100.8 crore in the same quarter of the previous year.

The consolidated income from operations for CRISIL for the six-month period ended June 30, 2022 (H1 2022) increased by 23.4 per cent to 1,263.5 crore from 1,023.7 crore in the same period the year prior. In H1 2022, total consolidated income increased by 24.5 per cent to 1,318.9 crore from 1,059.1 crore in the same period of the previous year. In H1 2022, profit after tax climbed 40.3 per cent to 258.5 crore from 184.3 crore during the same period the previous year.

“The Board of Directors has also approved the payment of Interim dividend of Rs. 8 per equity share of face value of Re 1 each, for the financial year ending December 31, 2022, which will be paid on August 18, 2022," said CRISIL in an exchange filing.

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 has also said in a regulatory filing 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. With the addition of new clients, the business continues to strengthen its market-leading position in corporate bond ratings, on account of investor preference for best-in-class ratings. Global Analytical Centre (GAC) strengthened analytical support across surveillance and ESG, and contributed to transformation initiatives for S&P Global Ratings Services," said the Board of Directors.

The company's revenue in the ratings, research and advisory segments increased in the second quarter of 2022 by 16.5 per cent, 32.1 per cent, and 9.7 per cent, respectively.

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