OPM was lower by 160 bps to 23.2% which resulting in an OP fall of 11% to Rs 96.63 crore. The Rating service business segmental PBIDT margin stood at 37% as compared to 36% for June 18 quarter and PBIDT thus stood at Rs 48.16 crore, up by 6% YoY. Research segment PBIDT stood at Rs 48.36 crore down by 39%, with margins at 19% as compared to 29% YoY. Advisory service segment reported a segmental PBIDT of Rs 1.26 crore as compared to loss of Rs 0.25 crore for June 18 quarter.

Other income was down by 29% at Rs 12.25 crore for June 19 quarter. The other income for June 19 quarter includes forex gain of Rs 1.56 crore as compared to forex gain of Rs 14.97 crore in June 18 quarter. Depreciation was down by 7% to Rs 9.63 crore and thus, PBT stood at Rs 99.21 crore down by 13%. After providing total tax of Rs 32.36 crore, down by 13% on YoY basis consolidated PAT for June 19 quarter of the company stood at Rs 66.85 crore, which was down by 13% on YoY basis.

Ashu Suyash, Managing Director & CEO, CRISIL, said, "We saw continued growth across our ratings and advisory businesses. In the research segment, there was moderation as the Risk & Analytics business saw impact from changing regulatory stance, particularly in the US. We are in an advanced stage of augmenting our products and solutions suite, creating new avenues to meet emerging client needs."

Other updates

The Board of Directors has declared a second interim dividend of Rs 6 per share (of Re 1 face value) for the financial year ended December 31, 2019.

Adverse foreign exchange movement impacted profitability for both the quarter and six months ended June 30, 2019, compared with the corresponding periods of the previous year.

The Ratings business maintained growth momentum this quarter by focussing on new client acquisition, and continued traction in the securitisation market. The business saw strong year-on-year growth in corporate bond ratings with year to date issuances higher versus same period last year. The steadfast and sharp focus on analytical rigour, independence and high quality of ratings helped reinforce company's differentiated position in the credit ratings industry, even as the non-banking sector was hit by a crisis late last year. Global Analytical Center continued to work closely with S&P Global and grew on the back of increased support given their entry into China. However, overall, growth in the ratings segment was moderated by a drop in number of issuances for bank loan ratings.

In the research segment, the Financial Research business saw good traction in areas such as ESG (environmental, social and governance), data analytics, and automation-based solutions. Revenue growth in the India Research business was driven by enhanced offerings that support credit and investment decisions. Coalition continued strong growth trajectory through new client adds. The business also launched a comprehensive service combining cost and capital benchmarking during the quarter. Overall, growth for research segment was offset by maturing regulations in the US, which impacted demand for certain risk and regulatory support services such as Comprehensive Capital Analysis and Review.

In the Advisory segment, wholly owned subsidiary CRISIL Risk and Infrastructure Solutions Ltd won many prestigious mandates during the quarter. The business saw sustained growth, driven by solutions for sales productivity, credit risk, and regulations both in India and the Middle East.

The company continues to sharpen focus on automation and process-streamlining to drive cost efficiencies.

CRISIL continued to deepen its franchise in India and globally through client/investor fora and publications on a variety of topics including macro-economic outlook, and securitisation and model risk management, to name a few. Whitepapers on areas such as credit risk and money laundering were also published.

Consolidated Performance for the 6 months ended June 19

Crisil reported consolidated net sales of Rs 831.55 crore, down by 3% on YoY for 6 months ended June 19.

Rating service business which constitute around 29% of total revenue was up by 7% on YoY to Rs 260.49 crore, while Research services which forms around 64% of total revenue, was down by 9% YoY to Rs 496.86 crore. Advisory service business also was higher by 15% to Rs 74.2 crore.

OPM however was lower by 140 bps to 25.4% which resulted in OP fall of 8% to Rs 210.99 crore.

The Rating service business segmental PBIDT margin stood at 37% as compared to 34% for 6 months ended June 18 and PBIDT thus stood at Rs 95.66 crore, up by 14% YoY. Research segment PBIDT stood at Rs 111.45 crore, down by 32% on YoY basis, with margins at 22%. Advisory service segment reported a segmental profit at PBIDT of Rs 5.40 crore up by 70% YoY with PBIDT margin at 7%.

Other income was lower by 23% to Rs 19.34 crore. There was a forex gain of around Rs 1.56 crore for 6 months ended June 19 as compared to forex gain of Rs 17.28 crore for 6 months ended June 18 period.

Depreciation was down by 10% to Rs 18.73 crore and thus, PBT stood at Rs 211.51 crore down by 9%. After providing total tax of Rs 68.02 crore, down by 7%, consolidated PAT for 6 months ended June 19 of the company stood at Rs 143.49 crore, down by 10% on YoY basis.