CRISIL Limited Q3 income at Rs.83.21 crores, net profit Rs.22.86 crores

The Board of Directors of CRISIL Limited (CRISIL), at its meeting held today, approved the Unaudited Financial Results for the third quarter ended September 30, 2006.

The CRISIL Group consolidated¹ total income for the third quarter ended September 30, 2006, was Rs.83.21 crore as against Rs.52.04 crore (60 %)² in the corresponding quarter of the previous year. The net profit after tax was Rs. 22.86 crore as against Rs. 14.12 crore (62%) in the corresponding quarter of the previous year. The total income for CRISIL was Rs. 44.33 crore against Rs. 32.76 crore (35 %) and the net profit after tax was Rs.14.36 crore as against Rs. 9.83 crore (46 %) in the corresponding quarter of the previous year. For the nine months ended September 30, 2006, the total consolidated income was Rs. 208.29 crore against Rs. 129.19 crore (61%) and the net profit after tax Rs. 48.01 crore as against Rs. 27.80 crore (73%) in the corresponding period of the previous year.

Collaboration with S&P is expanding CRISIL’s business opportunities at home and abroad. CRISIL, majority owned by Standard & Poor's, will hence forth be known as a Standard & Poor's company, as styled in the masthead of this communication. Exposure of CRISIL research to international investors through the S&P global network is growing, and joint product development for the Indian market is being pursued in areas such as fund and equity research and market indices. The International Finance Corporation, last month awarded a consortium led by S&P and CRISIL to develop an environmental, social and corporate governance index for India. In addition, CRISIL is playing an increasingly important part in S&P’s global resource management strategy, providing S&P credit and equity research operations around the world with a growing range of analytical, data management and publishing support.

CRISIL Ratings continued to grow and maintained its leadership position in the domestic rating business. The growth was driven by continued borrowings by banks and increased demand for short-term term ratings from corporates. CRISIL FundServices received several mandates from Asset Management Companies (AMCs) for rating capital protection-oriented funds, ratings for which were made mandatory by SEBI. CRISIL Ratings’ international business, consisting primarily of business with S&P, continues to perform satisfactorily. CRISIL Ratings released a commentary, titled "Pay Commission may reverse states’ fiscal improvement." and "Compendium on Banking Sector" in pursuit of its thought leadership initiatives. During the quarter, the CRISIL Ratings conducted its 50th training program.

CRISIL Infrastructure Advisory registered a good growth in its revenues. The division completed several mandates which include finalization of City Development Plans for number of smaller towns, completion of milestones with respect to capacity additions in the power sector, valuation of entities and submission of final reports of a couple of multilateral assignments in Africa. During the quarter, the Division has started working on numerous engagements including visioning for a sector, public sector enterprises reforms and investment reviews for proposed projects. The division secured engagements in the areas of power trading, containerisation, disinvestment and preparation of a Utility for accessing capital markets. The division undertook important outreach initiatives including a seminar on ‘Gas contracts, regulations and pricing’ and on ‘demystifying coal mining. The division also made significant progress in expanding Infrastructure advisory services overseas.

Gas Strategies Group (CRISIL’s wholly owned subsidiary based in London) performed well during the quarter. Gas Strategies Consulting worked on a number of important assignments in the areas of Contract and operations review, IOC support in price negotiation, LNG Terminal Feasibility and LNG supply. Gas Strategies Group also won number of new projects including assignments with leading companies in this sector.

CRISIL Investment & Risk Management Services (CIRM) received mandate from a leading private sector bank for the Operational Risk Solutions, which marks its entry in the space of operations risk as also the first in the Indian bank segment. The division continues to win mandates for implementation of credit risk solutions such as the one that it got during this quarter from a public sector bank.

CRISIL Research maintained growth momentum through subscriptions to standard products, delivery of customized research assignments and introduction of new products. The important initiatives for the quarter were launch of Agricultural Risk Monitor, a product designed for banks to manage their exposure to agriculture, IPO Grading Service and launch of training programme in macroeconomics. The Division also released its second publication title ‘Ready Reckoner of leading listed Companies’ through a prominent publisher and the third edition of the book ‘Accounting and Analysis - the Indian experience’ went into reprint.

Irevna group of companies, the wholly owned subsidiaries of CRISIL providing high-end analytical outsourcing services to international clients, maintained the growth during the quarter. The quarter witnessed strengthening of client relationships with considerable expansion in size of engagement with most clients. The ramp up of new business engagements has been satisfactory.

The shares of CRISIL Limited closed the day at Rs.1770 in NSE.

Note:1. The Consolidated accounts include accounts of CRISIL Ltd. and its subsidiaries CRISIL Research and Information Services Ltd., CRISIL MarketWire Ltd., Global Data Services of India Ltd., CRISIL Properties Ltd., Gas Strategies Group Limited (UK) and its subsidiaries, Irevna Research Services Ltd, Irevna Limited (UK) and its subsidiary, and proportionate share in income and expenses of joint venture India Index Services & Products Ltd.

2. Figures in parenthesis represent growth over previous year.

Source : Equity Bulls

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