Sales of Rating Services segment has gone down 5.23% to Rs 136.58 crore (accounting for 25.84% of total sales). Sales of Advisory Services segment has gone up 14.00% to Rs 36.49 crore (accounting for 6.90% of total sales). Sales of Research Services segment rose 20.20% to Rs 355.44 crore (accounting for 67.25% of total sales).

Profit before interest, tax and other unallocable items (PBIT) have jumped 28.14% to Rs 136.23 crore. PBIT of Rating Services segment fell 12.25% to Rs 52.00 crore (accounting for 38.17% of total PBIT). PBIT of Advsiory Services segment rose 1,262.50% to Rs 4.36 crore (accounting for 3.20% of total PBIT). PBIT of Research Services segment rose 70.92% to Rs 79.87 crore (accounting for 58.63% of total PBIT).

PBIT margin of Rating Services segment fell from 41.12% to 38.07%. PBIT margin of Advsiory Services segment rose from 1.00% to 11.95%. PBIT margin of Research Services segment rose from 15.80% to 22.47%. Overall PBIT margin rose from 22.53% to 25.78%.

Operating profit margin has jumped from 24.64% to 26.36%, leading to 19.85% rise in operating profit to Rs 139.31 crore. Employee cost decreased from 55.98% to 55.53%. Other expenses fell from 19.39% to 18.11%. Selling and administration expenses rose from 11.45% to 12.54%.

Other income rose 81.12% to Rs 21.97 crore. Provision for interest fell 31.18% to Rs 2.56 crore. Loan funds remained nil. Sundry debtors were higher at Rs 345.71 crore as of 30 June 2021 compared to Rs 334.24 crore as of 30 June 2020. Cash and bank balance rose to Rs 228.71 crore as of 30 June 2021 from Rs 227.90 crore as of 30 June 2020. Investments rose to Rs 449.46 crore as of 30 June 2021 from Rs 304.38 crore as of 30 June 2020.

Provision for depreciation fell 12.86% to Rs 27.3 crore. Fixed assets increased to Rs 321.21 crore as of 30 June 2021 from Rs 267.05 crore as of 30 June 2020. Intangible assets declined from Rs 569.27 crore to Rs 386.64 crore.

Profit before tax grew 40.83% to Rs 131.42 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 30.62 crore, compared to Rs 26.98 crore. Effective tax rate was 23.30% compared to 28.91%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 51.94% to Rs 100.80 crore.

The results for the period ended June 2021, include six-month financials of Greenwich Associates LLC, acquired on 26 February 2020, as against four-month numbers considered in the same period of the previous year.

The Board of Directors declared an interim dividend of Rs 8 per share (of Re 1 face value) in the current quarter for the financial year ended December 2021, compared with Rs 6 per share interim dividend declared during the quarter ended June 2020.

Says Ashu Suyash, Managing Director & CEO, CRISIL, "Our well-diversified business mix, and relentless focus on analytical excellence and customer experience enabled strong growth despite the pandemic-driven upheaval. While new wins and renewals helped grow core areas, our new offerings across credit and non-financial risk are enabling us to tap into the emerging needs of clients. During the quarter, we also stepped up on employee care and safety in the wake of the second wave. As increasing coverage of vaccination leads the world out of the pandemic, our businesses are well-positioned to serve the growing needs for benchmarks, analytics and insights in India and globally."

Other updates

Consumption demand across sectors of the Indian economy saw impact during the reporting quarter due to the second wave of the Covid-19 pandemic and consequent containment measures in various states. The quantum of bond issuances plunged 61% on-year, while the number of issuers dropped by a sharp 48%. Bank credit growth remained muted in both, the MSME and large-corporate sectors.

Amid the challenging credit landscape, revenue of Ratings was impacted, while the business continued to hold its leading position in the corporate bond market and added new clients during the quarter. On the new products front, the business saw traction across stressed assets and structured finance. The Global Analytical Centre continued its upward traction driven by increased coverage in analytical support, surveillance and transformation projects. Overall, the Ratings segment revenue de-grew 5.2%.

The Research segment had a strong quarter, growing its revenue by 20.2%, with all businesses in the segment delivering growth for the quarter. Global Research & Risk Solutions (GR&RS) saw good growth across model risk, traded risk, and non-financial risk. Buy-side research also saw uptick due to higher demand for research in alternative asset management.

With Corporate and Investment Banking (CIB) industry's performance normalising, Coalition-Greenwich saw acceleration in business momentum during the quarter. Growth for the business was further aided by traction in non-CIB offerings, especially for commercial banking.

In the India Research business, growth was driven by continued demand for data, capital market-related insights and new products launched in funds and fixed-income. The business also launched Environmental, Social, Governance (ESG) scores for 225 Indian corporates across 18 sectors, which was well received by the market.

The advisory segment witnessed robust revenue growth of 14.0% during the quarter from new wins and pipeline conversion. The proprietary technology platforms in the Business Intelligence and Risk Solutions business continued to garner interest from clients.

Consolidated Performance – H1CY2021

Net sales (including other operating income) of CRISIL has increased 13.80% to Rs 1023.71 crore. Sales of Rating Services segment has gone up 2.96% to Rs 285.51 crore (accounting for 27.89% of total sales). Sales of Advsiory Services segment has gone up 13.34% to Rs 70.52 crore (accounting for 6.89% of total sales). Sales of Research Services segment rose 19.21% to Rs 667.68 crore (accounting for 65.22% of total sales).

Profit before interest, tax and other unallocable items (PBIT) have jumped 19.09% to Rs 262.35 crore. PBIT of Rating Services segment rose 4.70% to Rs 122.32 crore (accounting for 46.62% of total PBIT). PBIT of Advsiory Services segment rose 569.23% to Rs 6.96 crore (accounting for 2.65% of total PBIT). PBIT of Research Services segment rose 29.93% to Rs 133.07 crore (accounting for 50.72% of total PBIT).

PBIT margin of Rating Services segment rose from 42.13% to 42.84%. PBIT margin of Advsiory Services segment rose from 1.67% to 9.87%. PBIT margin of Research Services segment rose from 18.29% to 19.93%. Overall PBIT margin rose from 24.49% to 25.63%.

Operating profit margin has jumped from 25.77% to 26.06%, leading to 15.09% rise in operating profit to Rs 266.81 crore. Employee cost increased from 54.38% to 54.98%. Other expenses fell from 19.85% to 18.95%. Selling and administration expenses rose from 12.27% to 12.75%.

Other income fell 16.68% to Rs 35.42 crore. Provision for interest fell 26.52% to Rs 5.18 crore. Loan funds remained nil. Sundry debtors were higher at Rs 345.71 crore as of 30 June 2021 compared to Rs 334.24 crore as of 30 June 2020. Cash and bank balance rose to Rs 228.71 crore as of 30 June 2021 from Rs 227.90 crore as of 30 June 2020. Investments rose to Rs 449.46 crore as of 30 June 2021 from Rs 304.38 crore as of 30 June 2020 .

Provision for depreciation fell 3.60% to Rs 55.13 crore. Fixed assets increased to Rs 321.21 crore as of 30 June 2021 from Rs 267.05 crore as of 30 June 2020. Intangible assets declined from Rs 569.27 crore to Rs 386.64 crore.

Profit before tax grew 15.15% to Rs 241.92 crore. Share of profit/loss were nil in both the periods. Provision for tax was expense of Rs 57.6 crore, compared to Rs 55.63 crore. Effective tax rate was 23.81% compared to 26.48%.

Minority interest was nil in both the periods. Net profit attributable to owners of the company increased 19.33% to Rs 184.32 crore.