Crisil Limited · NSE:CRISIL
Crisil — Q2 2019 Earnings Presentation
24 slides from Crisil's earnings presentation, July 2019
Slide 1: Q2 2019 Analyst presentation
July 2019 Q2 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 from operations was ₹415.8 cr for the quarter ended June 30, 2019; profit after tax at ₹66.9cr – Ratings business maintained growth momentum by focusing on new client acquisition, and continued traction in the securitization market. – In the Research seg
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 #Global best direct prese
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: Moving with the tide amid rising global risks
Moving with the tide amid rising global risks Indicator FY2018 FY2019 FY2020F India Real GDP (y-o-y %) 7.2 6.8 7.1 Investments (y-o-y %) 9.3 10.0 7.5 10 year G-sec yield (%, March) 7.6 7.5 7-7.3 Fiscal deficit (% of GDP) 3.5 3.4 3.3 © 2019 CRISIL Ltd. All rights reserved. Exchange rate (Re per $, Ma
Slide 9: Adapting swiftly to fast changing trends
Adapting swiftly to fast changing trends AI / Machine Cyber risk Data ESG © 2019 CRISIL Ltd. All rights reserved. Decisioning Fintechs Geopolitical risks Millennials Passive Investing Regulation 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: Q2 2019 income from operations at ₹415.8 crore; PAT at ₹66.9 crore
Q2 2019 income from operations at ₹415.8 crore; PAT at ₹66.9 crore Consolidated income from operations ₹ crore ₹ crore 856.0 831.6 436.1 415.8 © 2019 CRISIL Ltd. All rights reserved. Q2 2018 Q2 2019 H1 2018 H1 2019 Revenue Profit after tax ₹ crore ₹ crore 77.1 159.3 66.9 143.5 Q2 2018 Q2 2019 H1 201
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 rose sharply in Q2 2019; Wholesale credit growth dipped
Corporate bond issuances rose sharply in Q2 2019; Wholesale credit growth dipped Bond market (issued quantum) Credit growth trend ₹ billion -19.2% © 2019 CRISIL Ltd. All rights reserved. 6,954 16.9% 6,041 5,617 11.5% 10.0% +39.2% 3,623 2,603 Jan-17 May-17 Sep-17 Jan-18 May-18 Sep-18 Jan-19 May-19 Cr
Slide 14: Ratings: Q2 2019 highlights
Ratings: Q2 2019 highlights Financials Business update • Ratings maintained its growth momentum through its focus on new Particulars (₹ cr) Q2 2018 Q2 2019 client acquisition, continued traction in securitization market and surge in corporate bond issuances in second quarter of 2019 Income from 128.
Slide 15: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Research Thought Leadership 15
Slide 16: Global CIB revenue pools bottoming out; continued growth in mutual fund and AIF
Global CIB revenue pools bottoming out; continued growth witnessed across mutual fund and AIF investments in India $ 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
Slide 17: Global regulatory paradigm continues to evolve
Global regulatory paradigm continues to evolve USA Europe Asia • CCAR • EBA/PRA Stress Testing • BASEL IV • DFAST • MiFID II • IFRS9 Key © 2019 CRISIL Ltd. All rights reserved. Regulations • FRTB • BASEL III, IV • SA for CR, OR • CECL • TRIM • SA for CR, OR • SA for CR, OR Maturing Tightening Nascen
Slide 18: Research: Q2 2019 highlights
Research: Q2 2019 highlights Financials Business update • Globally, Coalition continued strong growth trajectory through new Particulars (₹) Q2 2018 Q2 2019 client adds & launch of new cost and capital benchmarking Income from services 274.5 251.4 Operations • In addition, Financial Research busines
Slide 19: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance - Advisory Thought Leadership 19
Slide 20: Emerging needs for data analytics, risk and infrastructure offerings
Emerging needs for data analytics, risk and infrastructure offerings Risk Solutions, Pragmatix • Increasing demand for data and analytics based solutions that integrate into customers’ workflow to facilitate on-the- ground decentralized decision making • Emerging opportunities driven by regulatory c
Slide 21: Advisory: Q2 2019 highlights
Advisory: Q2 2019 highlights Financials Business update Particulars (₹) Q2 2018 Q2 2019 • Advisory segment won many prestigious mandates during Income from the quarter 33.2 33.4 Operations • The business saw sustained growth, driven by solutions for sales productivity, credit risk, and regulations b
Slide 22: Agenda
Agenda Executive Summary CRISIL Overview Business Environment © 2019 CRISIL Ltd. All rights reserved. Financial Performance Segment Performance Thought Leadership 22
Slide 23: Leading provider of independent opinion
Leading provider of independent opinion Events Publications © 2019 CRISIL Ltd. All rights reserved. CRISIL participated at the Morgan Stanley CRISIL GR&A hosted an industry discussion S&P Global Ratings and CRISIL jointly 21st Annual India Summit on Implementing Model risk management hosted an event
Slide 24: 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