CRISIL March 2024 Quarter Sees 5.51% Net Profit Drop; Dividend Announced

Shares of CRISIL, a leading ratings agency and provider of high-end research, plunged 4% on Tuesday following the release of its financial results for the fourth quarter of fiscal year 2024.

The company reported a 5.5% decline in consolidated net profit, which fell to Rs 138 crore compared to Rs 146 crore in the corresponding quarter of the previous fiscal year.

CRISIL's stock price fell by 3.75% to Rs 4653.60 on the Bombay Stock Exchange (BSE), down from the previous close of Rs 4835.15. The market capitalisation of the firm also slipped to Rs 34,861 crore.

Despite the decline in net profit, CRISIL recorded positive growth in several key financial metrics.

Consolidated income from operations for the quarter increased by 3.2% to Rs 737.7 crore, compared to Rs 714.9 crore in the same quarter of the previous year.

Total income for the March quarter climbed 3.6% to Rs 758.8 crore, up from Rs 732.2 crore in the corresponding quarter of the previous year.

Profit before tax also saw a marginal increase of 1% to Rs 195.5 crore compared to Rs 193.6 crore in the same quarter of the previous year.

In light of these results, the board of CRISIL announced an interim dividend of Rs 7 per equity share with a face value of Rs 1 each for the financial year ending December 31, 2024. The dividend is scheduled to be paid on May 14, 2024.

"While global economic growth surprised to the upside in 2023, it is likely to slow in 2024. The momentum in India remains strong, highlighting the country's growth potential; however, private consumption growth should be monitored. Clients in global banking are cautious due to macroeconomic and geopolitical uncertainty, and they seek operational efficiency, regulatory compliance, and business transformation. We remain committed to delivering value to all of our stakeholders by investing in digital skills, people, and innovative solutions." Amish Mehta, Managing Director and CEO of CRISIL, said in a statement.

CRISIL remains focused on providing analysis, opinions, and solutions that enhance market functionality. The company's services are essential for the world's largest banks and leading corporations, aiding them in making informed decisions and navigating complex market landscapes.

Despite facing challenges posed by economic uncertainties and evolving market dynamics, CRISIL continues to prioritise investments in digital capabilities, talent acquisition, and the development of innovative solutions.

These strategic initiatives underscore the company's commitment to delivering long-term value to its stakeholders and maintaining its position as a trusted industry leader.

As CRISIL navigates the evolving economic landscape, its ability to adapt to changing market conditions and deliver valuable insights will be critical to sustaining its growth trajectory and ensuring its continued success in the global marketplace.