Shares of Crisil, the Indian credit rating agency, dropped by 4% after the company announced its Q1 results and declared a dividend.
Crisil reported a consolidated net profit of Rs 103.6 crore for the quarter ended March 31, 2022, compared to a net profit of Rs 97.1 crore in the same quarter last year. The company’s revenue increased by 3.3% to Rs 472.2 crore in Q1 FY22 from Rs 457 crore in Q1 FY21.
However, the market was disappointed with the company’s dividend announcement. Crisil announced a dividend of Rs 13 per share, which is lower than the Rs 16 per share dividend it paid in the previous year.
Following the announcement, the company’s shares fell by 4% to Rs 2,922.85 on the BSE. The decline in the share price wiped off nearly Rs 470 crore from the company’s market capitalization.
The fall in the company’s share price was also due to concerns over the impact of the Covid-19 pandemic on its business. The company has been facing challenges due to the pandemic and the economic slowdown it has caused.
The rating agency has been hit by a slowdown in the Indian economy and a decrease in the demand for credit ratings. The company’s revenue growth has been affected due to a decline in the number of debt issuances in India.
Crisil has been taking steps to address these challenges. The company has been diversifying its business by expanding its offerings in the data analytics and research space. It has also been focusing on the international market to drive growth.
Despite the challenges, the company remains optimistic about its future prospects. The company’s management has stated that it expects its business to recover as the Indian economy improves and the demand for credit ratings picks up.
In a statement, Ashu Suyash, Managing Director and CEO of Crisil, said, “While the near-term outlook remains uncertain, we believe that our focus on innovation and building differentiated offerings will help us emerge stronger over the long term.”
Crisil is one of the leading credit rating agencies in India, and its ratings are widely used by investors, banks, and financial institutions to make investment decisions. The company is also involved in providing research and analytics services to its clients.
In conclusion, Crisil’s Q1 results and dividend declaration have disappointed the market, leading to a decline in the company’s share price. However, the company remains optimistic about its future prospects and is taking steps to address the challenges it is facing. Investors will be closely watching the company’s performance in the coming quarters to assess its ability to navigate the current economic environment.
