Crisil Limited · NSE:CRISIL
Crisil — Q2 2021 Earnings Presentation
25 slides from Crisil's earnings presentation, July 2021
Slide 1: Q2 2021 Analyst Presentation
July 2021 Q2 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 driven by its mission
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: Domestic macros impacted by second wave; Developed economies drive global growth
Domestic macros impacted by second wave; Developed economies drive global growth Indicator FY2019 FY2020 FY2021 FY2022F GDP (y-o-y %) 6.5 4.2 -7.3 9.5 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 reserved. Exchange rate (Re/
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: Q2 2021 income from operations at ₹528.5 cr.; PAT at ₹100.8 cr.
Q2 2021 income from operations at ₹528.5 cr.; PAT at ₹100.8 cr. Income from Operations ₹ crore ₹ crore +12.0% +13.8% 528.5 1,023.7 471.8 899.6 © 2021 CRISIL Ltd. All rights reserved. Q2 2020 Q2 2021 H1 2020 H1 2021 Profit After Tax ₹ crore ₹ crore +19.3% +51.9% 100.8 184.3 154.5 66.3 Q2 2020 Q2 2021
Slide 10: CRISIL’s commitment to ESG
CRISIL’s commitment to ESG 10 © 2021 CRISIL Ltd. All rights reserved.
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: Significant dip in bond market activity and bank credit growth remains muted
Significant dip in bond market activity and bank credit growth remains muted impacted by the pandemic Bond Issuances (₹ billion) Credit Growth 24.0% Bond issuance quantum 19.0% 8,000 7,890 © 2021 CRISIL Ltd. All rights reserved. 7,152 7,000 14.0% 12.4% 6,000 5,000 9.0% 6.0% 4,000 -61% 3,000 4.0% 2,2
Slide 13: Ratings: Q2 2021 highlights
Ratings: Q2 2021 highlights Financials Business update • Ratings business continued to hold its leading position in the corporate bond market and added new clients during the quarter Particulars (₹ cr) Q2 2020 Q2 2021 despite the challenging credit landscape • Further, on the new products front, the
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 Capital market remains buoyant; Globally, performance of CIB industry is normalising
Indian Capital market remains buoyant; Globally, performance of CIB industry is normalising ₹ ‘000 crore ₹ ‘000 crore 3,349 2,993 2,687 2,237 2,366 442 451 India 1,693 1,341 Alternative 348 mutual fund 239 Investment 185 200 AUM* © 2021 CRISIL Ltd. All rights reserved. 142 Funds (AIFs) 93 2015 2016
Slide 16: Evolving regulations present opportunities
Evolving regulations present opportunities USA: Maturing • CCAR © 2021 CRISIL Ltd. All rights reserved. • 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: Q2 2021 highlights
Research: Q2 2021 highlights Financials Business update • The Research segment had a strong quarter, growing its revenue by 20.2%, with all businesses in the segment delivering growth for the quarter. The segment during the quarter also witnessed margin expansion of over 670 bps Particulars (₹ cr) Q
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: Q2 2021 highlights
Advisory: Q2 2021 highlights Financials Business update • The advisory segment witnessed robust revenue growth of 14.0% during Particulars (₹ cr) Q2 2020 Q2 2021 the quarter from new wins and pipeline conversion • Our proprietary technology platforms in the Business Intelligence and Income from Risk
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. Webinars & Events ESG Summit Hosted the inaugural CRISIL India ESG Leadership Summit in June 2021 To help protect y our priv acy , PowerPoint has block ed automatic download of this picture. 22
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: Creating sustained social impact through CSR initiatives
Creating sustained social impact through CSR initiatives Furthering CRISIL’s ESG agenda by driving inclusive growth and conserving the environment Financial capability building of rural women in Assam, Rajasthan, Haryana and Maharashtra • Mein Pragati expanded its outreach through 1,036 trained Sakh
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