Crisil has reported an impressive 29% growth in topline on the back of increased rating business in the current year. Crisil has rated companies in industries such as media and airlines in FY01, which were hitherto not rated in India. The company's profits however, declined by 25%.
(Rs m) | FY00 | FY01 | Change |
Income from Operations | 340 | 440 | 29.4% |
Other Income | 29 | 17 | -41.2% |
Expenditure | 180 | 296 | 64.3% |
Operating Profit (EBDIT) | 159 | 144 | -10.0% |
Operating Profit Margin (%) | 46.9% | 32.6% | |
Interest | 0 | - | |
Depreciation | 29 | 54 | 83.1% |
Profit before Tax | 159 | 107 | -32.8% |
Other Adjustments | 34 | 27 | -18.7% |
Tax | 63 | 37 | -41.0% |
Profit after Tax/(Loss) | 129 | 97 | -25.1% |
Net profit margin (%) | 38.0% | 22.0% | |
No. of Shares (eoy) (m) | 6.2 | 6.2 | |
Diluted Earnings per share | 20.8 | 15.6 | |
P/E (at current price) | 7 | ||
Price/Book value | 1.1 |
Crisil's operating profits took a severe hit due to higher staff cost and professional expenses, which rose by 52% and 282% respectively. Professional fees was higher on the back of rise in payment of outsourcing charges to Rs 28 m from Rs 2 m in FY00. These factors led to a sharp decline in its operating margins to 32.6% from 46.9% in the previous year. Also, depreciation cost was higher by 83% due to acquisition of brand 'Infac' and purchase of new office premises.
Other adjustments is on account of profits on sale of fixed assets, property rights and investments. Excluding these items the profits of the company drop by 27%.
At the current market price of Rs 115 Crisil is trading at PER of 7 times its FY01 earnings and a Price/Book value ratio of 1x. Crisil's topline growth was satisfactory considering the widespread difficulties in the economy and industry. However, due to higher operating expenses the company's net took a hit. As a result the re-rating of the stock is highly linked to its ability to show an improvement in operating margins and generate the returns on the amount invested (acquisition of Infac) by it in the current year.
Here's an analysis of the annual report of CRISIL for 2018-19. It includes a full income statement, balance sheet and cash flow analysis of CRISIL. Also includes updates on the valuation of CRISIL.
For the quarter ended March 2020, CRISIL has posted a net profit of Rs 881 m (up 15.0% YoY). Sales on the other hand came in at Rs 4 bn (up 2.9% YoY). Read on for a complete analysis of CRISIL's quarterly results.
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For the quarter ended December 2019, CRISIL has posted a net profit of Rs 953 m (down 16.2% YoY). Sales on the other hand came in at Rs 5 bn (down 0.6% YoY). Read on for a complete analysis of CRISIL's quarterly results.
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