MUMBAI, May 23: Credit Rating and Information Services of India Ltd (Crisil) has posted a marginal 1 per cent rise in its net profit in 1996-97 at Rs 7.64 crore. The board of directors which met in Mumbai on Friday have recommended a dividend of Rs 3 per share as against Rs 2.70 per share last year. Earning per share increased to Rs 12.33 from Rs 12.21 and cash earnings per share increased to Rs 19.36 from Rs 16.76 last year.

Income registered a growth of 23 per cent for the year ended March 31, 1997, despite a difficult year for the Indian capital market, a Crisil release said. The total income grew to Rs 26.53 crore from Rs 21.68 crore in the previous year.

The gross profit before depreciation and taxation increased to Rs 17.07 crore as against Rs 14.72 crore last year. The company has provided for depreciation of Rs 4.36 crore and taxation of Rs 5.07 crore during the year.

The cumulative number of debt instruments rated increased from 1,878 to 2,229 and the cumulative volume of debt rated from Rs 114,873 crore to Rs 139,721 crore.

According to HSBC Batlivala & Karani report, Crisil's profit has dipped by 11 per cent to Rs 3.8 crore during the second half of 1996-97.

The profit for the year has been 20 per cent lower than HSBC's estimates.

The operating expenses, especially the salaries were realinged in line with the industry, resulted in squeeze in operating margins from 61.9 per cent to 60.1 per cent. In addition, higher depreciation and tax resulted in a flat growth in net profit.

Crisil's announcement of 30 per cent dividend has failed to enthuse market sentiments. On the Bombay Stock Exchange, the share price slipped by 1.27 per cent to close at Rs 291.25 against Thursday's close of Rs 295.

Anticipation of a fall, led to operators making attempts to offload positions at the intial stages of trading session on BSE, with the stock opening at a weak note of Rs 292 and accounting for only 7,100 shares traded over the day.

Copyright © 1997 Indian Express Newspapers (Bombay) Ltd.