Crisil net profit up by 12 pc

MUMBAI, OCT 18: The Credit Rating Information Services of India Ltd (Crisil) today reported a net profit of Rs 2.77 crore for the second ...

MUMBAI, OCT 18: The Credit Rating Information Services of India Ltd (Crisil) today reported a net profit of Rs 2.77 crore for the second quarter ended September 30, 1999, a 12 per cent rise as compared to the corresponding period last year. The rating agency has, however, shown a 3.8 per cent decline in its total income for the period at Rs 9.45 crore as compared to a total income of Rs 9.82 crore for the second quarter of the previous fiscal.

The board of directors of Crisil approved the agency’s unaudited financial results for the second quarter and the first half of the current fiscal at its meeting held in Mumbai on Monday.

According to the unaudited results, Crisil’s income from operations dipped by 6.06 per cent to Rs 8.30 crore as compared to Rs 8.84 crore achieved in the same period last fiscal. "Crisil’s other income rose to Rs 1.14 crore and the total expenditure incurred during the second quarter of the current fiscal at Rs 4.34 crore was 4.8 per cent higher than that incurred in same period in the previous fiscal," Crisil said.

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The rating agency’s net profit for the first half of the current fiscal at Rs 6.10 crore, was 2.2 per cent lower than the Rs 6.24 crore net profit for the corresponding period of the previous fiscal.

Crisil’s gross profit after interest but before depreciation and taxation declined to Rs 5.10 crore (Rs 5.67 crore for the corresponding period last year). "Depreciation for the second quarter of 1999-2000 stood at Rs 0.64 crore as compared to Rs 1.24 crore in the same period of previous year. The provision for taxation too was lower at Rs 1.67 against Rs 1.95 crore tax provision made in the second quarter of 1998-99," the agency release said.

"In the immediate future, we expect the infrastructure sector – particularly power and telecom sectors – to become really active following the positive government announcements. The future business will however, depend on the picking up of the debt issuance market. In the meantime, Crisil is laying more emphasis on the innovative selling of ratings through advance rating method, particularly in the mergers and acquisition business," Crisil managing director, R Ravimohan said.

"The ratings business is expected to grow in the near future in view of increased activity in the primary market which is likely to result in increase in debt-oriented funding," Crisil release said. The rating agency added that its critical software and hardware systems are Y2K compliant and the non-compliant systems have been replaced. "Crisil does not anticipate any disruption in services due to the Y2K problem. It has however, put a contingency plan in place," the release said.