MEMBER'S LOGINX
| Login Failure | ||||||||
|
||||||||
| Sign Up | Forgot Password? | ||||||||
- Home
- Outlook Arena
- Apr 30, 2001 - Crisil in restructuring phase
Crisil in restructuring phase
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.
More Views on News
CRISIL 2018-19 Annual Report Analysis (Annual Result Update)
Nov 4, 2020 | Updated on Nov 4, 2020Here'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.
CRISIL Announces Quarterly Results (4QFY20); Net Profit Up 15.0% (Quarterly Result Update)
Apr 24, 2020 | Updated on Apr 24, 2020For 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.
Indian Railway Finance Corporation IPO: Should You Apply? (IPO)
Jan 18, 2021Monopolistic railway financer with impeccable asset quality.
CAMS IPO: Should You Apply? (IPO)
Sep 18, 2020Does the company having 70% market share of the mutual fund registrar business have sound prospects?
CRISIL Announces Quarterly Results (3QFY20); Net Profit Down 16.2% (Quarterly Result Update)
Feb 17, 2020 | Updated on Feb 17, 2020For 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.
More Views on NewsMost Popular
My Recent Recommendation Will Profit from the Global Supply Chain Crisis (Profit Hunter)
Mar 31, 2021A tiny chemical company, started in the Licence Raj era, is a great example of a new wealth creating opportunity.
My Stock Trading Strategy (Fast Profits Daily)
Mar 31, 2021In this video I'll show you exactly how I go about picking stocks for trading.
4 Stocks to Make Your Portfolio Immune to the Second Covid Wave (Profit Hunter)
Apr 6, 2021Rather than predicting the market, successful investing is more about preparing well and placing your bets accordingly.
If the Market Falls, I Will Do This... (Fast Profits Daily)
Apr 1, 2021What should you do if the market falls? In this video, I'll tell you what I will do.
India: Recovery Stalled by Vaccine Games? (The Honest Truth)
Apr 13, 2021Ajit Dayal on how India's vaccine strategy will impact the markets.
MoreOUR TOP 5 IDEAS
- India's Revival: A Once-in-a-generation Wealth Making Opportunity
- Are You Making One of These 15 Costly Mistakes While Investing. Learn more!
- Covid-19 Proof Multibagger Stocks - Download this FREE Report Now
- Free Report: The Secret to Increasing Your Trading Profits Daily!
- No Guessing, No Hunches, and No Missed Trends Ever! Join Us on YouTube Now.
CRISIL SHARE PRICE
Apr 13, 2021 03:38 PM
TRACK CRISIL
- Track your investment in CRISIL with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
- Add To MyStocks
MORE ON CRISIL
CRISIL - CARE RATING COMPARISON
COMPARE CRISIL WITH
MARKET STATS
ABOUT EQUITYMASTER
Since 1996, Equitymaster has been the source for honest and credible opinions on investing in India. With solid research and in-depth analysis Equitymaster is dedicated towards making its readers- smarter, more confident and richer every day. Here's why hundreds of thousands of readers spread across more than 70 countries Trust Equitymaster.
FREE NEWSLETTERS
PREMIUM PRODUCTS
QUICK LINKS
POPULAR TOPICS
- Basics of Value Investing
- Benjamin Graham
- How to Invest in Gold
- How to Invest in Silver
- Best Stocks to Buy Today
- Warren Buffett - The Value Investor
- The Best Small-cap Stocks to Buy
- The Best Bluechip Stocks to Buy
- Your Ultimate Guide to Penny Stock Investing
- 10 Rules for Successful Long-Term Investing
- How to Invest in the Share Market
- Momentum Moves
FOLLOW
APP
Copyright © Equitymaster Agora Research Private Limited.
Whitelist | Refer | Terms | Privacy | Contact | About | Sitemap
Equitymaster Agora Research Private Limited (Research Analyst) 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: info@equitymaster.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407
All rights reserved. Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement.
LEGAL DISCLAIMER: Equitymaster Agora Research Private Limited (Research Analyst) bearing Registration No. INH000000537 (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA, Canada or the European Union countries, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here. The performance data quoted represents past performance and does not guarantee future results.
SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster requests your view! Post a comment on "Crisil in restructuring phase". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!