Date:27/10/2007 URL: http://www.thehindubusinessline.com/2007/10/27/stories/2007102750340200.htm

Back Crisil net rises 70% at Rs 24 cr

Our Bureau

Mumbai, Oct. 26

Ratings agency Crisil Ltd has recorded a growth of 70 per cent in its net profit at Rs 24.37 crore for the quarter ended September 30, 2007, against Rs 14.35 crore in the corresponding quarter last year.

The huge rise in net profits for the quarter ended September 2007 is because wholly owned subsidiaries of Crisil Ltd have been merged with the company with effect from April 1, 2007. Therefore, the base in the previous year is smaller and hence, not comparable, said a senior official of the company. “We got the approval only in the September quarter,” the official said.

Growth was driven by increased demand for ratings across sectors and revival in the securitisation market, said a release from the company. The recent guidelines for bank loan ratings under Basel II have opened up a new opportunity for ratings business in India, the release said.

In response to the Reserve Bank of India’s invitation for applications for setting up of Credit Information Companies, Crisil has incorporated a wholly owned subsidiary Crisil Credit Information Services Ltd and filed an application with the RBI.

Total income for the quarter was Rs 96.98 crore (Rs 44.32 crore). Of this, income from operations was Rs 90.77 crore (Rs 43.14 crore) and other income was Rs 6.2 crore (Rs 1.18 crore). Other income for the period ended September 30, 2007, includes dividend of Rs 2.03 crore from a subsidiary company, said the release.