India's largest credit rating agency gained as much as 55 per cent in a year, mainly because the rating agency has managed to diversify its business. While rating margins came under pressure in 2011 as competition for mandates was high, the company's research business which provides services to global clients saved the day.

Buoyed by its research segment and depreciating rupee, CRISIL managed a 30 per cent growth in revenues in the nine months ended September 2011. Profits before tax too expanded by 25 per cent after excluding other income. Apart from utilising cash for acquisitions, the company has also managed to reward its shareholders by providing dividends and buying back shares.

CRISIL acquired Pipal Research in late 2010 to strengthen its global foot print and also expand into verticals such as telecom and technology. For the first nine months, the research division's revenue grew at 33 per cent year-on-year as against 15 per cent of the rating segment.

Rupee depreciation helped the case, with the company booking Rs 89 crore on forex gains from the outsourcing arm. The research segment in fact contributed more of the profits than the ratings business.

The company's superior performance compared to peers and its IT tilt drove market fancy, with its price-earnings improving from 21 times consolidated earnings last year to 32 times now.

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