OPM was lower by 30 bps to 26.0%, while the OP rose 1% to Rs 113.33 crore. The Rating service business segmental PBIDT margin jumped to 43% as compared to 36% for September 2018 quarter and PBIDT thus moved up 39% to Rs 61.24 crore. Research segment PBIDT stood at Rs 60.32 crore down by 28%, with margins showing decline to 23% as compared to 31% YoY. Advisory service segment reported a segmental PBIDT of Rs 4.77 crore as compared to Rs 0.1 crore for September 2018 quarter.

Other income has jumped by 51% at Rs 43.52 crore for September 2019 quarter. The other income for September 2019 quarter. Depreciation was down by 14% to Rs 8.80 crore and thus, PBT stood at Rs 147.98 crore up by 13%. After providing total tax of Rs 42.85 crore, up by 6% on YoY basis, consolidated PAT for September 2019 quarter of the company increased 17% to Rs 105.13 crore.

Other updates

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

The Board of Directors has declared a third interim dividend of Rs 7 per share (of Re 1 face value) for the financial year ended December 2019.

Bond market issuances grew 18% by value on borrowings by highly-rated companies and financial institutions. Ratings business continues to see strong growth momentum given focus on new client acquisition, and a surge in securitisation transactions. The business strengthened its leadership position as its strong analytical credentials leveraged the increasing preference among issuers and investors for higher-quality ratings. Overall, the ratings segment grew by 16.2% from Rs 122.9 crore to Rs 142.8 crore. Global Analytical Centre contributed to this by increasing support to S&P Global Ratings in the areas of surveillance and data modernization programs.

In the Research segment, the company saw growth for offerings across data and credit analytics in the Indian market and global benchmarking analytics for corporate and investment banking industry. the company continued to deepen presence with buy side clients and witnessed increased traction for credit risk. Overall growth for the segment was impacted as the risk and analytics space continued to see a decline in demand for traditional regulatory assignments such as Comprehensive Capital Analysis and Review, and Dodd Frank Annual Stress Testing.

The company has increased focus on newer offerings across model risk management, change management, and risk technology & analytics, which are seeing stronger demand.

The Advisory segment expanded its international footprint through wins from World Bank. The business also launched a new risk assessment model - ICON during the quarter.

Consolidated Performance - Nine months ended September 2019

Crisil reported consolidated net sales of Rs 1267.43 crore, down by 1% on YoY for nine months ended September 2019.

Rating service business which constitute around 32% of total revenue was up by 10% on YoY to Rs 403.33 crore, while Research services which forms around 60% of total revenue, was down by 7% YoY to Rs 755.59 crore. Advisory service business was higher by 10% to Rs 108.51 crore.

OPM however was lower by 100 bps to 25.6% which resulted in OP fall of 5% to Rs 324.32 crore.

The Rating service business segmental PBIDT margin stood at 39% as compared to 35% for nine months ended September 2018 and PBIDT thus stood at Rs 156.90 crore, up by 23% YoY. Research segment PBIDT stood at Rs 171.77 crore, down by 31% on YoY basis, with margins declining to 23%. Advisory service segment reported a segmental profit at PBIDT of Rs 10.17 crore up by 210% YoY with PBIDT margin at 9%.

Other income increased by 17% to Rs 62.86 crore. Depreciation was down by 12% to Rs 27.53 crore and thus, PBT stood at Rs 359.49 crore down by 1%. After providing total tax of Rs 110.87 crore, down by 2%, consolidated PAT for nine months ended September 2019 of the company came in flat at Rs 248.62 crore.

Notes

During the quarter ended September 2019, the Company has received Rs 20.25 crore, from sale of duty free saleable scrips received pursuant to the Service Export Incentive Scheme (SEIS) of the Directorate General of Foreign Trade, Government of India. This is included under 'Other income' in the financial results.

During the quarter ended September 2019, the Company has received dividend income from its subsidiaries aggregating Rs 47.08 crore, included in 'Other Income' in the standalone financials results.

The Company elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961, as introduced by Taxation Laws (Amendment) Ordinance, 2019. Accordingly, the Company has recognized the provision for income tax for the period ended September 2019 using the revised effective tax rate, calculated basis the new tax rate of 25.17%, as applicable for the entities in India including re-measurement of deferred tax asset. The impact of this change is recognized in the statement of profit and loss for the quarter ended September 2019.