Crisil Limited · NSE:CRISIL

Crisil — Q2 2018 Earnings Presentation

23 slides from Crisil's earnings presentation, July 2018

  1. Slide 1: Corporate Presentation: Updated for 2Q 2018 results

    Corporate Presentation Updated for 2Q 2018 results © 2018 CRISIL Ltd. All rights reserved. July 2018 1

  2. Slide 2: Disclaimer / Safe Harbor

    Disclaimer / Safe Harbor This presentation has been prepared solely as a concise update of Company’s quarterly 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 correctness of forward

  3. Slide 3: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Thought leadership 3

  4. Slide 4: Executive summary

    Executive summary • CRISIL’s consolidated income from operations grew by 7% YoY to ₹ 436 cr for the quarter ended June 30, 2018; PAT grew by 15% YoY to ₹ 77 cr during the same period – Ratings posted healthy growth due to new mandates in the large corporate ratings segment – Research business focuse

  5. Slide 5: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Thought leadership 5

  6. Slide 6: Operating and business environment

    Operating and business environment India ₹ Buoyant GDP Recovery in banking Rupee continues NPAs still a © 2018 CRISIL Ltd. All rights reserved. growth expectation credit to weaken concern Global Global recovery Divergent Changing regulatory Geopolitical getting less monetary policy landscape in the

  7. Slide 7: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Thought leadership 7

  8. Slide 8: 2Q 2018 Income from operations grew by 7%; PAT by 15%

    2Q 2018 Income from operations grew by 7%; PAT by 15% Consolidated income from operations +6% ₹ crore +7% 808 856 407 436 45 64 24 33 532 548 267 275 231 244 © 2018 CRISIL Ltd. All rights reserved. 116 128 2Q 2017 2Q 2018 1H 2017 1H 2018 Ratings Research Advisory Profit after tax ₹ crore +14% 159 13

  9. Slide 9: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Ratings  Research  Advisory  Thought leadership 9

  10. Slide 10: Bond issuances challenged due to hardening yields…

    Bond issuances challenged due to hardening yields… Bond yields on a upward trajectory since 2017 Muted growth in bond issuances India 10 year G-Sec Yield ₹ crore Bond market (issued quantum) 10.0% -10% © 2018 CRISIL Ltd. All rights reserved. 9.0% 734,722 660,752 8.0% 525,859 442,405 7.0% 368,830 313

  11. Slide 11: … however, long term potential remains attractive

    … however, long term potential remains attractive Bonds continue to increase their share in the outstanding funding to the corporate sector 122 122 111 111 101 101 26% 91 92 25% © 2018 CRISIL Ltd. All rights reserved. 81 81 23% 21% 11% 71 71 10% 19% 12% 20% 12% 11% 11% 64% 64% 67% 66% 70% 70% FY13 F

  12. Slide 12: Ratings – 2Q 2018 highlights

    Ratings – 2Q 2018 highlights Enhance the core Operating Revenue (₹ cr) • Growth in revenues driven by new mandates in the large +10% corporate ratings segment despite a sharp decline in bond 116 128 issuances • Credit offtake during the year backed by wholesale credit © 2018 CRISIL Ltd. All rights r

  13. Slide 13: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Ratings  Research  Advisory  Thought leadership 13

  14. Slide 14: Global: Continued demand for differentiated investment research in the global markets

    Global: Continued demand for differentiated investment research in the global markets Bottoming out of CIB revenue pools $ Billion 537 545 529 521 523 533 127 136 133 135 139 140 97 98 91 90 91 94 45 46 46 45 47 50 76 85 83 77 82 80 64 62 67 58 58 61 © 2018 CRISIL Ltd. All rights reserved. 129 119 1

  15. Slide 15: Global: Regulatory landscape stabilizing, global recovery getting less synchronized

    Global: Regulatory landscape stabilizing, global recovery getting less synchronized Enterprise Risk: CCAR, Global Regulatory Accounting regulations: Key regulations DFAST, EBA/PRA Stress Prescription: Basel III, IV US GAAP, IFRS Testing • Global economy is on the upswing with major economies experie

  16. Slide 16: India: Key emerging trends and expectations

    India: Key emerging trends and expectations Buoyant capital market supporting research needs Increasing demand for dynamic and granular data © 2018 CRISIL Ltd. All rights reserved. Robust growth in AUMs in AMCs over past five years Growing demand from the BFSI sector including credit and fixed incom

  17. Slide 17: Research – 2Q 2018 highlights

    Research – 2Q 2018 highlights Enhance the core • Coalition witnessed high renewal rate and increase in wallet Operating Revenue (₹ cr) share across clients in Investment Banking space +3% • Revenues reflect moderate growth with increased presence in 267 275 core offerings offset by impact of maturin

  18. Slide 18: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Ratings  Research  Advisory  Thought leadership 18

  19. Slide 19: Business environment continues to be driven by policy, regulatory and technological changes

    Business environment continues to be driven by policy, regulatory and technological changes Risk Solutions Infrastructure Advisory Markets • In India, asset quality continues to decline with • Continued focus of government in infrastructure rising NPAs leading to demand for risk development projects

  20. Slide 20: Advisory – 2Q 2018 highlights

    Advisory – 2Q 2018 highlights Enhance the core Operating Revenue (₹ cr) • Strong revenue growth supported by new business wins, successful delivery of existing projects +38% 33 • The segment profit was impacted due to increased provisions 24 and investments during the quarter © 2018 CRISIL Ltd. All

  21. Slide 21: Agenda

    Agenda  Executive summary  Operating and business environment © 2018 CRISIL Ltd. All rights reserved.  Financial highlights  Segment performance  Thought leadership 21

  22. Slide 22: Leading provider of independent opinion

    Leading provider of independent opinion © 2018 CRISIL Ltd. All rights reserved. CRISIL and S&P Global jointly hosted the 2nd CRISIL SME Ratings participated in the ‘MSME CRISIL Infrastructure Advisory participated in the ‘S&P - CRISIL Exclusive Investor Briefing’ Directors Summit’ organised by Insti

  23. Slide 23: About CRISIL

    About CRISIL CRISIL is a leading agile and innovative, global analytics company driven by its mission of making markets function better. We are India’s foremost provider of ratings, data, research, analytics and solutions. A strong track record of growth, culture of innovation and global footprint s

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