Crisil Limited · NSE:CRISIL
Crisil — Q3 2018 Earnings Presentation
24 slides from Crisil's earnings presentation, Oct 19, 2018
Slide 1: Cover letter to stock exchanges
CRISIL An S6rP Global Company October 19,2018 Listing Department Listing Department National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, 5 th floor P J Towers Plot No. CII, G Block Dalal Street Bandra-Kurla Complex Mumbai 400 001 Bandra (East) Mumbai 400 051 Dear Sirs, Sub.: Corporate P
Slide 2: Corporate Presentation Updated for 3Q 2018 results
Corporate Presentation Updated for 3Q 2018 results © 2018 CRISIL Ltd. All rights reserved. Oct 2018 1
Slide 3: 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 4: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Thought leadership 3
Slide 5: Executive summary
Executive summary CRISIL’s consolidated income from operations rose 4% to ₹425 cr for the quarter ended September 30, 2018; PAT grew by 30% to ₹90 cr during the same period Ratings revenue was driven by healthy growth in bank loan ratings, partially offset by a decline in corporate bond issuance
Slide 6: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Thought leadership 5
Slide 7: Operating and business environment
Operating and business environment India ₹ Signs of GDP growth Recovery in banking Rupee continues to NPAs still a concern revival credit weaken © 2018 CRISIL Ltd. All rights reserved. Developed markets Global recovery getting less Changing regulatory landscape Geopolitical risks synchronized in the
Slide 8: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Thought leadership 7
Slide 9: 3Q 2018 Income from operations grew by 4%; PAT by 30%
3Q 2018 Income from operations grew by 4%; PAT by 30% Consolidated income from operations ₹ crore +5% +4% 1,218 1,281 410 425 99 70 24 34 793 816 262 268 124 123 355 366 © 2018 CRISIL Ltd. All rights reserved. 3Q 2017 3Q 2018 9M 2017 9M 2018 Ratings Research Advisory Profit after tax ₹ crore +19% 24
Slide 10: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Ratings Research Advisory Thought leadership 9
Slide 11: Decline in corporate bond issuances following a rise in yields
Decline in corporate bond issuances following a rise in yields India 10 year G-Sec Yield Bond market (issued quantum) ₹ crore 10.0% During the first nine months of calendar 2018, bond © 2018 CRISIL Ltd. All rights reserved. 9.0% issuances have dropped 38% versus previous year 6,95,391 -38% 8.0% 6,04
Slide 12: Pickup in wholesale credit growth
Pickup in wholesale credit growth Credit growth trend 24% 19% 18.2% © 2018 CRISIL Ltd. All rights reserved. 14% 12.2% 9% 11.5% 4% -1% Credit Growth Wholesale Credit Growth Retail Credit Growth Source: RBI, CRISIL 11
Slide 13: Ratings – 3Q 2018 highlights
Ratings – 3Q 2018 highlights Enhance the core Operating Revenue (₹ cr) • Revenue from Ratings was driven by healthy growth in bank -1% loan ratings 124 123 • The performance was partially offset by a decline in corporate bond issuances following a rise in yields © 2018 CRISIL Ltd. All rights reserve
Slide 14: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Ratings Research Advisory Thought leadership 13
Slide 15: 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 ‐3% ‐2% 0% +1% 545 529 521 523 528 136 133 135 139 140 98 91 90 91 94 46 46 45 47 50 85 83 77 82 78 62 67 58 58 64 © 2018 CRISIL Ltd. All rights reserved. 119 110 117 10
Slide 16: 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 growth momentum continues although less synchronized w
Slide 17: India: Key emerging trends and expectations
India: Key emerging trends and expectations Strong demand for primary data, analytics and benchmarking solutions from clients Need for research & data support across credit lifecycle from lenders © 2018 CRISIL Ltd. All rights reserved. Growing demand from the BFSI sector including credit and fixed i
Slide 18: Research – 3Q 2018 highlights
Research – 3Q 2018 highlights Enhance the core • Maturing regulations in US resulted in moderate demand for Operating Revenue (₹ cr) regulatory and risk services; however, CRISIL Coalition delivered +2% strong growth backed by renewals and improved price realisation 268 262 • Increased client additi
Slide 19: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Ratings Research Advisory Thought leadership 18
Slide 20: 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 be a concern with rising • Continued focus of government in infrastructure development NPAs leading to demand for risk man
Slide 21: Advisory – 3Q 2018 highlights
Advisory – 3Q 2018 highlights Enhance the core Operating Revenue (₹ cr) • Pragmatix saw healthy growth by winning new mandates from existing clients +42% 34 • Infrastructure advisory won prestigious mandates from multilaterals 24 and government entities, including in the energy sector © 2018 CRISIL
Slide 22: Agenda
Agenda Executive summary Operating and business environment © 2018 CRISIL Ltd. All rights reserved. Financial highlights Segment performance Thought leadership 21
Slide 23: Leading provider of independent opinion
Leading provider of independent opinion © 2018 CRISIL Ltd. All rights reserved. CRISIL participated in the ‘FIBAC 2018’ CRISIL Research participated as a knowledge CRISIL GR&A exhibited at the ACAMS 17th Annual jointly organized by FICCI & IBA partner in ‘AMFI Mutual Fund Summit 2018’ AML & Financia
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. 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