Crisil Limited · NSE:CRISIL
Crisil — Q1 2021 Earnings Presentation
25 slides from Crisil's earnings presentation, April 2021
Slide 1: Q1 2021 Analyst Presentation
April 2021 Q1 2021 Analyst Presentation © 2021 CRISIL Ltd. All rights reserved.
Slide 2: Disclaimer / Safe Harbor
Disclaimer / Safe Harbor This presentation has been prepared solely as a concise update of Company’s quarterly and/or annual results. By reading the presentation slides, you agree to be bound by the following limitations: (a) CRISIL Ltd. (“CRISIL” or “Company”) cannot give assurance to the correctne
Slide 3: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 3
Slide 4: CRISIL is a leading global analytics company
CRISIL is a leading global analytics company driven by its mission of making markets function better Ratings Benchmarking Insights © 2021 CRISIL Ltd. All rights reserved. Research Services Risk Solutions Empowering decision- making with cutting-edge #Analytics Market Insights & Analytics #Global foo
Slide 5: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 5
Slide 6: Covid-19 pandemic has led to a global recession in 2020, but expectations of good recovery
Covid-19 pandemic has led to a global recession in 2020, but expectations of good recovery this year Indicator FY2019 FY2020 FY2021F FY2022F GDP (y-o-y %) 6.5 4.0 -8.0* 11.0 10 year G-sec yield (%, March) 7.5 6.2 6.2 6.5 Fiscal deficit (% of GDP) 3.4 4.6 9.5 6.8# © 2021 CRISIL Ltd. All rights reserv
Slide 7: Key business trends
Key business trends © 2021 CRISIL Ltd. All rights reserved. Economic revival Buoyant capital markets Financial and credit AI/ML adoption stress Accelerated digital Emphasis on social and Increasing focus on non- Remote working and transformation sustainable practices financial risk distributed model
Slide 8: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 8
Slide 9: Q1 2021 results: Income from Operations up 15.8%
Q1 2021 results: Income from Operations up 15.8% Total Income Income from operations ₹ crore ₹ crore +11.0% +15.8% 508.7 495.2 458.2 427.8 © 2021 CRISIL Ltd. All rights reserved. Q1 2020 Q1 2021 Q1 2020 Q1 2021 Profit Before Tax Profit After Tax ₹ crore ₹ crore -5.4% -5.2% 116.8 110.5 88.1 83.5 Q1 2
Slide 10: Awards and Recognition
Awards and Recognition Scenario Expansion Manager (SEM) platform for Stress Testing has been awarded the Risk Markets Technology Awards 2021 by Risk.net under the ‘Best Modelling Innovation’ category © 2021 CRISIL Ltd. All rights reserved. Awarded the ASSOCHAM Diversity and Inclusion Excellence Awar
Slide 11: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Ratings 5. Thought Leadership 6. Corporate Social Responsibility 11
Slide 12: Fewer issuances in bond market; bank credit growth remains muted
Fewer issuances in bond market; bank credit growth remains muted especially for the corporate segment Bond Issuances (₹ billion) Credit Growth 24.0% Bond issuance quantum 7,796 19.0% 8,000 © 2021 CRISIL Ltd. All rights reserved. 7,152 7,000 14.0% 6,000 5,000 9.6% 9.0% 4,000 6.6% -18% 4.0% 4.2% 3,000
Slide 13: Ratings: Q1 2021 highlights
Ratings: Q1 2021 highlights Financials Business update • During the quarter, Ratings segment registered strong revenue growth of 11.8% driven by strong surveillance fees, new client additions and Global Analytical Center (GAC) deepening coverage across practices including Particulars (₹ cr) Q1 2020
Slide 14: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Research 5. Thought Leadership 6. Corporate Social Responsibility 14
Slide 15: Indian MF AUM continues to attract inflows; Global CIBs benefited from trading revenues
Indian MF AUM continues to attract inflows; Global CIBs benefited from trading revenues, however pressure continues ₹ ‘000 crore 2,993 3,237 2,687 2,237 2,366 10.5-11% India 1,693 9.1% 8.5-9.0% 1,341 8.2% mutual fund India - Gross AUM* NPA (%) © 2021 CRISIL Ltd. All rights reserved. 2015 2016 2017 2
Slide 16: Evolving regulations present opportunities
Evolving regulations present opportunities USA: Maturing • © 2021 CRISIL Ltd. All rights reserved. CCAR • DFAST Europe: Tightening • FRTB • EBA/PRA Stress Testing Asia: Nascent • IBOR • BASEL III • IFRS9 • CECL • FRTB • IBOR • UMR (Phase V and VI) • TRIM • Stress Testing • IBOR • UMR (Phase V and VI
Slide 17: Research: Q1 2021 highlights
Research: Q1 2021 highlights Financials Business update • Research segment posted healthy revenue growth of 18.1% driven by Global Research and Risk Solutions (GRRS) and Greenwich Particulars (₹ cr) Q1 2020 Q1 2021 • GRRS growth was due to existing and new mandates across transformation, change and
Slide 18: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance - Advisory 5. Thought Leadership 6. Corporate Social Responsibility 18
Slide 19: Advisory: Q1 2021 highlights
Advisory: Q1 2021 highlights Financials Business update • The segment saw revenue and margin growth driven by infrastructure Particulars (₹ cr) Q1 2020 Q1 2021 and credit risk mandates • Infrastructure advisory saw increased demand across government- Income from and multilateral-supported programs 3
Slide 20: Risks
Risks Prolonged impact of Covid-19 pandemic and delay in economic revival Evolving regulatory environment © 2021 CRISIL Ltd. All rights reserved. Information security and cyber-related risks Adverse currency movement Intense competition Reputation risk 20
Slide 21: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance Franchise and thought 5. Leadership 6. Corporate Social Responsibility 21
Slide 22: A 'TRUSTED' voice in Media
A ‘TRUSTED’ voice in Media Media Reports © 2021 CRISIL Ltd. All rights reserved. Budget 2021 Flagship events 6th edition of CRISIL’s Flagship Bond Market 5th edition of India Outlook Seminar titled 'Is Seminar with the theme 'Bonds that build a nation' the investment cycle rebound round the corner'
Slide 23: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2021 CRISIL Ltd. All rights reserved. 3. Financial Performance 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 23
Slide 24: CSR initiatives continue to drive last-mile impact
CSR initiatives continue to drive last-mile impact Contributing to CRISIL’s ESG focus by driving inclusive growth and conserving environment through afforestation projects Financial capability building of rural women in Assam, Rajasthan, Haryana and Maharashtra • Over 32,000 beneficiaries trained, 5
Slide 25: About CRISIL
About CRISIL CRISIL is a leading, agile and innovative global analytics company driven by its mission of making markets function better. It is India’s foremost provider of ratings, data, research, analytics and solutions with a strong track record of growth, culture of innovation, and global footpri