CRISIL’s profits soar by 14% in Q3 2024—find out what’s behind the surge

CRISIL Limited, an S&P Global company, reported a 10.3% increase in income from operations for the third quarter of 2024. The financial results, announced on October 16, 2024, revealed that the company’s consolidated total income reached ₹833.2 crore, up from ₹771.8 crore in the same quarter of the previous year. Additionally, profit before tax (PBT) increased significantly by 14.1% to ₹228.5 crore.

The Board of Directors declared an interim dividend of ₹15 per share, surpassing the ₹11 per share declared in the corresponding quarter of the previous year. CRISIL’s robust performance was bolstered by strong momentum in bond issuances and ratings growth. Bank and Non-Banking Financial Companies (NBFCs) played a crucial role in driving an 80% increase in bond issuances this quarter compared to the previous year.

CRISIL Ratings Business Performance

The ratings segment remains a key driver for CRISIL, with revenue soaring by 31.5% year-on-year in Q3 2024. This growth is attributed to investor demand for high-quality ratings and the favourable market conditions promoting increased bond activity. The Global Analytical Centre (GAC) also contributed to this growth through new client engagements and expanded work with S&P Ratings.

Meanwhile, the Global Research and Risk Solutions (GR&RS) division faced a slowdown due to reduced discretionary spending by global clients. However, the company continued to see demand in its buy-side offerings and credit solutions for banks.

Expert Insights: Resilient Strategy Amid Global Uncertainties

Managing Director and CEO Amish Mehta commented on the financial results, stating that while global markets show diverging growth trends, CRISIL’s business remains resilient. He highlighted India’s robust GDP growth despite global uncertainties, though he also noted that the company expects the growth rate to moderate to 6.8% this fiscal due to high interest rates and fiscal consolidation.

The Reserve Bank of India (RBI) recently shifted its stance to a neutral position, halting rate changes after maintaining an accommodative stance earlier in the year. Mehta expressed that CRISIL is investing in emerging technologies such as artificial intelligence, with a focus on solutions like Gen AI Credit Assessment to enhance global service offerings.

Sectoral and Technological Initiatives Drive Growth

In addition to financial performance, CRISIL’s franchise activities remained robust. The company hosted regional conclaves in Jaipur and Kolkata under the theme ‘India’s Economic Trajectory—Opportunities Amid Challenges’, targeting industry growth areas and challenges. CRISIL’s Market Intelligence & Analytics (MI&A) division held sectoral webinars focusing on critical industries like textiles, steel, and pharmaceuticals, among others.

On the technology front, CRISIL’s achievements were recognized in the Chartis RiskTech100® 2025 list, where it won the Model Validation category for the third consecutive year. The company was also named a ‘Category Leader’ in Credit Lending Operations and Regulatory Reporting Solutions by Chartis.

Outlook and Market Impact

Despite the positive earnings report, CRISIL cautioned that its global outlook remains influenced by geopolitical uncertainties, including U.S. market slowdown and Eurozone recovery. Investors are advised to closely monitor these factors as they may impact CRISIL’s future growth trajectories.