Slide 1: Q3 2022 Analyst Presentation
Q3 2022 Analyst Presentation October 2022 © 2022 CRISIL Ltd. All rights reserved. 1
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 © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 3
Slide 4: CRISIL: Over 30-year journey of innovation and excellence
CRISIL: Over 30-year journey of innovation and excellence 11% 2011-21 Revenue CAGR #Agile to market 8% needs 2011-21 EPS © 2022 CRISIL Ltd. All rights reserved. CAGR 12600+ Clients Unleashing #Innovation Global presence across 11countries 38% Female Defining #Global employees best standards 42+ Nati
Slide 5: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 5
Slide 6: Macroeconomic Indicators
Macroeconomic Indicators Indicator FY2021 FY2022 FY2023F GDP (y-o-y %) -6.6 8.7 7.3* 10-year G-sec yield (%, March) 6.2 6.8 7.5 Fiscal deficit (% of GDP) 9.2 6.9 6.4^ Exchange rate (Re/$, March avg.) 72.8 75.5 79.0 India © 2022 CRISIL Ltd. All rights reserved. CPI Inflation (%) 6.2 5.5 6.8 Repo Rate
Slide 7: Rise in downside risks for global growth
Rise in downside risks for global growth Macro trends Business environment trends Slowing global growth projections Continuing capital market volatility © 2022 CRISIL Ltd. All rights reserved. Prolonged geopolitical uncertainty Increasing focus on risk management and regulatory compliance Capex cycl
Slide 8: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 8
Slide 9: Q3 Highlights
Q3 Highlights 19.6% 24.9% 31.0% ₹10 Q3 2022 Q3 2022 Q3 2022 22.1% 36.2% 36.7% Interim 9M 2022 9M 2022 9M 2022 Dividend © 2022 CRISIL Ltd. All rights reserved. Income declared from PBT PAT operations Healthy growth despite deteriorating macros • Ratings business grew on account of new client addition
Slide 10: Robust growth in Q3 2022 and 9M 2022
Robust growth in Q3 2022 and 9M 2022 Income from operations Profit before exceptional items and tax Profit after tax ₹ crore ₹ crore ₹ crore +19.6% +24.9% +31.0% 571.0 683.0 151.2 188.8 147.9 112.9 © 2022 CRISIL Ltd. All rights reserved. Q3 2021 Q3 2022 Q3 2021 Q3 2022 Q4 2021 Q3 2020 Q4 2022 Q3 202
Slide 11: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Segment Performance - Ratings 5. Thought Leadership 6. Corporate Social Responsibility 11
Slide 12: Corporate bond issuances remain muted; Credit growth on the rise
Corporate bond issuances remain muted; Credit growth on the rise Bond Issuance Quantum (₹ billion) Credit Growth (%) 25.0% 8,000 7,853* 19.5% 6,614* © 2022 CRISIL Ltd. All rights reserved. 20.0% 6,000 15.5% -3% 15.0% 4,000 2,045* 1,975* 2,000 10.0% 14.2% 0 5.0% 2020 2021 Q3 2021 Q3 2022 0.0% Mar-20
Slide 13: Ratings: Highlights
Ratings: Highlights Financials Particulars (₹ cr) Q3 2021 Q3 2022 Growth Particulars (₹ cr) 9M 2021 9M 2022 Growth Income from Income from 150.7 170.2 12.9% 430.3 486.2 13.0% Operations Operations © 2022 CRISIL Ltd. All rights reserved. Segment Profit 64.5 69.8 8.2% Segment Profit 187.3 207.4 10.7%
Slide 14: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update Segment Performance – 4. Research, Analytics & Solutions 5. Thought Leadership 6. Corporate Social Responsibility 14
Slide 15: CIB revenue normalizes but remains above pre-pandemic levels; Domestic flows in MFs and AIFs increase
CIB revenue normalizes but remains above pre-pandemic levels; Domestic flows in MFs and AIFs increase ₹ ‘000 crore ₹ ‘000 crore India mutual fund AUM* Alternative Investment Funds (AIFs) 3,864 3,960 609 694 2,993 2,687 442 348 311 © 2022 CRISIL Ltd. All rights reserved. 267 185 142 2019 2020 2021 Q2
Slide 16: Regulatory focus continue to drive spends
Regulatory focus continue to drive spends Global themes • ESG & Climate Risk integration and reporting • FCC/AML/FATF • Governance of AI/ML models • Stress Testing • Cyber security USA Europe, including UK • Third-party risk • BSA / AMLA • OCC’s MRM • Customer and Conduct risk • CCR • TCFD © 2022 CR
Slide 17: Research, Analytics & Solutions: Highlights
Research, Analytics & Solutions: Highlights Financials Particulars (₹ cr) Q3 2021 Q3 2022 Growth Particulars (₹ cr) 9M 2021 9M 2022 Growth Income from Income from 420.3 512.8 22.0% 1,164.4 1,460.2 25.4% Operations Operations © 2022 CRISIL Ltd. All rights reserved. Segment Profit 84.2 97.5 15.8% Segm
Slide 18: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update 4. Segment Performance 5. Thought Leadership 6. Corporate Social Responsibility 18
Slide 19: A 'TRUSTED' voice in Media
A ‘TRUSTED’ voice in Media Reports & Blogs Media © 2022 CRISIL Ltd. All rights reserved. Webinars & Events Social Media 19
Slide 20: Agenda
Agenda 1. CRISIL Overview 2. Business Environment © 2022 CRISIL Ltd. All rights reserved. 3. Performance Update Segment Performance – 4. Research, Analytics & Solutions 5. Thought Leadership 6. Corporate Social Responsibility 20
Slide 21: Continuing to create social impact through its CSR initiatives
Continuing to create social impact through its CSR initiatives Two-time winner of the National CSR Awards, 2018 and 2020 Financial capability building of rural women & communities Promoting environment conservation and larger social consciousness among employees © 2019 CRISIL Ltd. All rights reserve
Slide 22: About CRISIL Limited
About CRISIL Limited 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