Crisil Limited · NSE:CRISIL
Crisil — Q1 2019 Earnings Presentation
25 slides from Crisil's earnings presentation, April 2019
Slide 1: Q1 2019 Analyst presentation
Apr 2019 Q1 2019 Analyst presentation 1 © 2019 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 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
Slide 3: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 3
Slide 4: Executive summary
Executive summary • Consolidated total income was ₹422.9 cr for the quarter ended March 31, 2019; profit after tax at ₹76.6 cr – Ratings business delivered strong growth supported by surge in corporate bond issuances and securitisation transactions – Coalition continued its growth momentum with stro
Slide 5: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 5
Slide 6: CRISIL, a leading global analytics company
CRISIL, a leading global analytics company #Agile to market needs 1,00,000+ 28,000+ 3700+ Customers ratings employees Unleashing © 2019 CRISIL Ltd. All rights reserved. #Innovation Rated over 90% of Defining 9 countries 144,000 India’s banking ₹ micro, small and industry by direct presence #Global b
Slide 7: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 7
Slide 8: Staying on the curve amid rising global risks
Staying on the curve amid rising global risks Indicator FY2018 FY2019E FY2020F India Real GDP (y-o-y %) 7.2 7.0 7.3 Investments (y-o-y %) 9.3 10.0 9.0 10 year G-sec yield (%, March) 7.6 7.5 7.5 Fiscal deficit (% of GDP) 3.5 3.4 3.4 © 2019 CRISIL Ltd. All rights reserved. Exchange rate (Re per $, Mar
Slide 9: Adapting swiftly to fast changing trends
Adapting swiftly to fast changing trends AI / Machine Cyber Data ESG © 2019 CRISIL Ltd. All rights reserved. Decisioning risk Fintechs Geopolitical Millennials Passive Regulation risks Investing 9
Slide 10: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 10
Slide 11: Q1 2019 Total income at ₹422.9 crore; PAT at ₹76.6 crore
Q1 2019 Total income at ₹422.9 crore; PAT at ₹76.6 crore Total Income Total Income from Operations ₹ crore ₹ crore -1.1% -1.0% 427.6 422.9 420.0 415.8 © 2019 CRISIL Ltd. All rights reserved. Q1 2018 Q1 2019 Q1 2018 Q1 2019 Profit After Tax PAT Margin ₹ crore -6.8% -110bps 82.2 76.6 19.2% 18.1% PAT M
Slide 12: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Ratings Thought Leadership 12
Slide 13: Corporate bond issuances buoyant in Q1 2019
Corporate bond issuances buoyant in Q1 2019 Bond market (issued quantum) ₹ billion 6,954 -19.2% © 2019 CRISIL Ltd. All rights reserved. 6,041 5,617 +26.3% 2,271 1,799 CY2016 CY2017 CY2018 Q1 2018 Q1 2019 Source: RBI, SEBI, Ministry of Finance, Prime Database, CRISIL Research 13
Slide 14: Continued pickup in overall credit growth
Continued pickup in overall credit growth Credit growth trend 25% 20% 16.70% © 2019 CRISIL Ltd. All rights reserved. 15% 13.50% 13.00% 10% 5% 0% Source: -5% RBI, CRISIL Wholesale Credit Growth Retail Credit Growth Credit growth 14
Slide 15: Ratings: Q1 2019 highlights
Ratings: Q1 2019 highlights Financials Business update Particulars (₹ cr) Q1 2018 Q1 2019 Growth (%) • Large and mid-corporate ratings grew 13.5% year-on-year while the overall Ratings segment grew by ~13% due to Income from 115.0 129.6 12.7% – Surge in corporate bond issuances Operations – Strong p
Slide 16: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Research Thought Leadership 16
Slide 17: Bottoming of global CIB revenue pools, increasing demand from investor segments
Bottoming of global CIB revenue pools, increasing demand from existing and new investor segments $ billion $ trillion 546 530 522 525 528 145 111 Global CIB 85 87 64 73 revenue Global 60 © 2019 CRISIL Ltd. All rights reserved. 50 36 pools AUM 14 23 22 6 7 10 14 2014 2015 2016 2017 2018 2012 2016 202
Slide 18: Evolving regulatory paradigm globally
Evolving regulatory paradigm globally USA Europe Asia • CCAR • EBA/PRA • BASEL III • DFAST • Stress Testing • IFRS Key © 2019 CRISIL Ltd. All rights reserved. Regulations • MiFID II • BASEL III, IV Maturing Tightening Nascent CCAR: Comprehensive Capital Analysis and Review PRA: Prudential Regulation
Slide 19: Research: Q1 2019 highlights
Research: Q1 2019 highlights Financials Business update Particulars (₹) Q1 2018 Q1 2019 Growth (%) • CRISIL Coalition continued to deliver strong performance with healthy renewals and additions in competitor and client analytics Income from offerings; Financial Research added buy-side clients and sa
Slide 20: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Advisory Thought Leadership 20
Slide 21: Emerging needs for data analytics, risk and infrastructure offerings
Emerging needs for data analytics, risk and infrastructure offerings Risk Solutions, Pragmatix Infrastructure Advisory • Increasing demand for integrated solutions that embed into • Focus on Infra development customers’ workflow • Increasing spend across key sectors © 2019 CRISIL Ltd. All rights res
Slide 22: Advisory: Q1 2019 highlights
Advisory: Q1 2019 highlights Financials Business update Particulars (₹) Q1 2018 Q1 2019 Growth (%) • Growth in Advisory segment was driven by increasing Income from demand for business intelligence and risk solutions 31.2 40.8 30.9% Operations • Infrastructure Advisory business gained share in segme
Slide 23: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 23
Slide 24: Leading provider of independent opinion
Leading provider of independent opinion Events Publications © 2019 CRISIL Ltd. All rights reserved. CRISIL Ratings hosted its Kolkata Chapter CRISIL Research associated as the CRISIL Ratings participated in the 10th of ‘CRISIL Ratings Conclave- A knowledge knowledge partner for PFRDA’s fifth Enterpr
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