Crisil profits spurt 30

MUMBAI, May 12: Credit Rating Information Services of India Crisil has posted a net profit of Rs 9.92 crore for the year 1997-98, register...

MUMBAI, May 12: Credit Rating Information Services of India Crisil has posted a net profit of Rs 9.92 crore for the year 1997-98, registering an increase of 30 per cent over the last fiscal8217;s figure of 7.64 crore.

Crisil8217;s board of directors has recommended a dividend of Rs 4.50 per share of Rs 10 inclusive of a special 10th anniversary dividend of Re 1 per share against Rs 3 in the previous year. The earning per share EPS stood at Rs 16 in March 1998 against Rs 12.33 in the previous year.

Crisil8217;s stock nosedived by over 9.9 per cent on the local bourses to be locked on the lower end of the price band. On the NSE, the stock was locked at Rs 650.70 having hit the upper end of the weekly settlement price-band, where a volume of 7,700 shares was recorded. Similarly, on the BSE, the stock was locked at Rs 608, with a volume of 8,700 shares.

According to market sources, the stock had been overvalued in anticipation of a liberal bonus which did not materialise. The knee-jerk reaction mirrored thenegative sentiment of the market.

The rating agency8217;s total income grew by 35 per cent to Rs 36.01 crore while total expenditure rose by wider marginfrom Rs 9.54 crore in 1996-97 to Rs 16.45 crore in 1997-98. Gross profit after interest, but before depreciation and taxation stood at Rs 19.56 crore Rs 17.06 crore. Provisioning on account of depreciation was for Rs 4.11 crore previous fiscal: Rs 4.36 crore and that for taxes, Rs 5.53 crore 5.07 crore.

A Crisil release, issued on Tuesday, said: quot;it had registered a healthy growth in revenues despite widespread difficulty in the economy and industry. The increase in infrastructure related debt mobilisation, rating of commercial papers and diversification into research and advisory services, contributed significantly to the growth.quot;

The agency had rated 568 instruments during the year as against the 351 in the preceding fiscal, a growth of 62 per cent.