CRISIL Announces Q1CY14 Result

CRISIL, India’s largest independent and integrated research house, announced its financial result for Q1CY14 on 17 April, 2014. The company has recorded a strong growth, showing a rise of 38.6% in its consolidated profit after tax to reach Rs. 68.71 crore in Q1CY14 as against Rs.49.6 crore in Q1CY13. EBITDA has grown by 34.3% on a Y-o-Y basis to Rs. 102.8 crore in Q1CY14. Further, its PAT margin also improved during the quarter to  reach 22.2% from 19.4% in Q1CY13.

CRISIL’s consolidated income from operations rose 21.4% to Rs. 308.98 crore for the quarter ended March 31, 2014 as compared to Rs. 254.49 crore in the corresponding quarter of the previous year. Coming to segment wise performance, the company’s research service division which alone contributes 58% of the total revenue for the company grew by 26.05% to Rs. 179.7 crore in Q1CY14 as compared to Rs 142.5 crore in Q1CY13. Rating service segment (which accounts for 38% of total revenue) rose 16.2% to Rs. 115.3 crore in Q1CY14, mainly due to increase in bank loan rating and SME rating business. The advisory services segment of the company went up by 11.3% to Rs.13.9 crore in this quarter as against Rs. 12.5 crore in the corresponding quarter of previous year.

As far as CRISIL’s expenditure is concerned, it has improved during the quarter. Staff expenses for the company has come down to 45.2% of total operating income during the quarter where it was 47.4% in Q1CY13. On the other hand, rent and professional fee has also improved marginally during the said quarter and has come down to 7.5% of total operating revenue from 8.1% in Q1CY13.

After the announcement of the result, the company's stock witnessed an increase in its price and closed at Rs. 1237.15 with 1.98% of gain over previous close. At CMP, the stock is trading at 27.5x of its trailing 12-month earning.