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Crisil

Capital Markets

11:10:00, Jul 22, 2013

After registering a 11% rise in consolidated sales and 13% fall in consolidated net profit in March 2013 quarter, Crisil registered impressive performance for the quarter ended June 2013.

During June 2013 quarter, on consolidated basis, Crisil registered a 23% jump in sales to Rs 265.84 crore. OPM improved from 26.2% to 29.4% taking OP up 38% to Rs 78.21 crore.

The Consolidated accounts include accounts of CRISIL Limited and its wholly owned subsidiaries - CRISIL Risk and Infrastructure Solutions Limited, Pipal Research Analytics and Information Services India Private Limited, Coalition Development Systems (India) Private Limited, Mercator Info-Services India Private Limited, CRISIL Irevna Information & Technology (Hangzhou) Co. Limited, CRISIL Irevna Argentina S.A., CRISIL Irevna UK Limited and its subsidiary CRISIL Irevna US LLC, CRISIL Irevna Poland Sp. Zo.o., Coalition Development Limited, UK and Coalition Development Singapore Pte Limited and proportionate share in income and expenses of joint venture - India Index Services & Products Limited.

Other income grew 38% to Rs 17.16 crore and depreciation was up 10% to Rs 8.73 crore, after which PBT jumped 41% to Rs 86.64 crore.

Provision for taxation jumped 49% to Rs 26.12 crore after which PAT rose 38% to Rs 60.52 crore.

Consolidated segment results for June 2013 quarter

The company's operations predominantly relate to providing rating, advisory and research services. Accordingly, revenues earned through rendering of these services represent the primary basis of segment information.

Rating Services business grew its consolidated sales by 11% to Rs 100.95 crore during June 2013 quarter. It accounted for 38% of total sales. Its PBIT grew 20% to Rs 38.76 crore and accounted for 43% of total

Research Services business consolidated sales grew 35% to Rs 152.34 crore during June 2013 quarter. It accounted for 57% of total sales. Its PBIT grew 42% to Rs 50.69 crore and accounted for 56% of total

Half yearly results

For the six month ended June 2013, on consolidated basis, Crisil registered a 17% rise in sales to Rs 520.84 crore. OPM fell from 31.2% to 29.7% which saw OP growth restricted to 11% to Rs 154.77 crore.

Other income grew 19% to Rs 20.37 crore and depreciation was up 10% to Rs 17.41 crore, after which PBT went up 12% to Rs 157.73 crore.

Provision for taxation jumped 20% to Rs 47.64 crore after which PAT rose 9% to Rs 110.09 crore.

Consolidated segment results for six months

For the six months, consolidated sales from Rating Services grew 4% to Rs 200.35 crore and accounted for 39% of total sales. PBIT fell 3% to Rs 77.36 crore and accounted for 46% of total

For the six months, consolidated sales from Research Services business jumped 29% to Rs 294.90 crore and accounted for 57% of total sales. Its PBIT grew 24% to Rs 87.73 crore and accounted for 52% of total

Growth in ratings revenue was driven by an increase in bond issuances

The growth in ratings revenue was driven by an increase in bond issuances during the quarter. Several new innovative instruments including India's first inflation-indexed debenture issue and the first Tier II capital issuance under the Basel-III regulations (both rated by CRISIL) were launched during the quarter.

CRISIL's SME Ratings business reported strong growth, backed by greater acceptance by the banking system and an increasing footprint across the country. CRISIL's Global Analytical Centre (GAC) continued to see good demand from analytical teams of Standard & Poor's.

Operating environment in the US and Europe challenging

While the operating environment in the US and Europe, the principal markets for CRISIL Global Research & Analytics (GR&A), continued to remain challenging during the quarter, new client additions and favourable currency movement helped in revenue growth.

During the quarter, CRISIL Global Research & Analytics (GR&A) in association with NASSCOM, launched a report, 'Risk & Procurement Analytics: A Promising Future'. The report forecast that the risk and procurement analytics market will touch an estimated USD 66 billion by 2020.

Rolled out 23 debt indices for the Indian Market

For the Indian market, CRISIL Research rolled out 23 debt indices of varying maturities across the Gilt, credit and money markets. CRISIL Research and Association of Mutual Funds in India (AMFI) jointly launched performance indices in five categories to represent the performance of various mutual fund categories that enable comparison with benchmarks across timeframes and market cycles.

CRISIL Risk and Infrastructure Solutions won several prestigious assignments

CRISIL Risk and Infrastructure Solutions Ltd (CRIS), a wholly owned subsidiary of CRISIL Ltd, won several prestigious assignments in the urban infrastructure space, despite a challenging business environment.

Launched CRISIL Inclusix

CRISIL Inclusix, an index that measures financial inclusion in India, was launched during the quarter. The index, inaugurated by the Finance Minister of India, Mr. P Chidambaram, is a one-of-its-kind tool to measure the extent of financial inclusion in each of the nation's 632 districts.

Update on open offer

On June 3, 2013, McGraw-Hill Financial Inc. (MHFI), through its subsidiary, McGraw-Hill Asian Holdings (Singapore) Pte Limited, announced a Voluntary Open Offer to acquire up to 15,670,372 equity shares, representing 22.23% of the total equity shares outstanding in CRISIL. McGraw-Hill Asian Holdings (Singapore) Pte Limited is the Acquirer, along with S&P India LLC, Standard & Poor's International LLC and MHFI, who are Persons Acting in Concert (PACs).

Full acceptance of the Voluntary Open Offer would increase the total stake in CRISIL of MHFI from 52.77% to 75%. The Offer Price of Rs 1210 per share represents a premium of 29% to the closing share price on May 31, 2013, and of 12% to the all-time closing high price of CRISIL shares on the National Stock Exchange of India Ltd (NSE)

Acquisition of Coalition Development Limited

CRISIL completed the acquisition of Coalition Development Limited (Coalition), a UK-based analytics firm, on July 4, 2012. The financials of Coalition and its subsidiary has been consolidated with those of CRISIL with effect from the said date. Coalition provides high-end analytics, mainly to leading global investment banks, and is a dynamic high-growth company with a firmly established premium brand.

Valuation

The Board has declared Interim dividend of Rs. 3 per share having nominal value of Re. 1 each.

Crisil: Consolidated results

 

1306 (03)1206 (03)Var. (%)1306 (6)1206 (6)Var. (%)1212 (12)1203 (12)Var. (%)
Net Sale265.84216.5523520.84446.2917979.31809.6421
OPM (%)29.426.229.731.233.632.7
OP78.2156.8438154.77139.0811329.22265.0924
Other Inc.17.1612.403820.3717.181918.7940.14-53
PBIDT95.3769.2438175.14156.2612348.01305.2314
Interest0.000.00--0.000.00--0.000.00--
PBDT95.3769.2438175.14156.2612348.01305.2314
Dep.8.737.971017.4115.791034.3229.8315
PBT86.6461.2741157.73140.4712313.69275.4014
EO0.000.00--0.000.00--0.000.00--
PBT after EO86.6461.2741157.73140.4712313.69275.4014
Tax26.1217.574947.6439.792093.2968.9835
PAT60.5243.7038110.09100.689220.40206.427
EPS(Rs)*34.324.831.228.631.329.3
* on current equity of Rs 7.05 crore. Face Value: Re 1 each
# EPS including construction income
Figures in Rs crore
Source: Capitaline Databases

Crisil: Consolidated segment results

 

1306 (3)1206 (3)Var. (%)% to Total1306 (6)1206 (6)Var. (%)% to Total
Sales
Rating Services100.9590.701138200.35191.92439
Advisory Services12.3712.291524.9025.0005
Research Services152.34113.203557294.90228.582957
TOTAL265.66216.1923100520.15445.5017100
Less: intersegment sales0.000.000.000.00
Net Sales265.66216.19520.15445.5
PBIT
Rating Services38.7632.41204377.3679.43-346
Advisory Services0.970.3914912.431.64481
Research Services50.6935.72425687.7370.742452
TOTAL90.4268.5232100167.52151.8110100
Less interest0.000.000.000.00
Less unallocable expenditure net of inc.4.950.727.624.45
Depreciation-8.73-7.97-17.41-15.79
PBT86.6461.27157.73140.47
Capital Employed
Rating Services-29.1-18.2360-5-29.1-18.2360-5
Advisory Services17.1416.82317.1416.823
Research Services37.4743.84-15637.4743.84-156
Add: Unallocable595.06518.561596595.06518.561596
TOTAL620.57560.9711100620.57560.9711100
* on current equity of Rs 7.05 crore. Face Value: Re 1 each
# EPS including construction income
Figures in Rs crore
Source: Capitaline Databases

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