CRISIL conducted a
conference call on 19 April 2023 to discuss the financial results for the
quarter and year ended March 2023 and prospects. Amish Mehta, MD&CEO
addressed the call:
Highlights:
The company has witnessed growth
across businesses stemming from demand for insights and analytics, amid macro
and global market uncertainties.
Ratings Services delivered
revenue growth supported by higher corporate bond issuances (both, by quantum
and number of issuers), and robust bank credit growth, which drove bank loan
ratings The ratings services segment saw
revenue growth of 16.1% on-year in the quarter. While bank credit growth
softened relatively compared with the previous quarter, it continues to be
robust, driving bank loan ratings
Research, Analytics and
Solutions segment saw traction for risk solutions, benchmarking,
sustainability, and infrastructure consulting
The company has continued
investment in technology infrastructure and talent. These investments turning
profitable would add to growth.
Global Analytical Center
(GAC) saw robust surveillance work delegation by S&P Global Ratings.
Global Research & Risk
Solutions (GR&RS) witnessed momentum across research, credit risk and
market risk solutions. The business also added new logos during the quarter.
Global Benchmarking
Analytics (GBA) continues to strengthen its client engagement driven by need
for granular, actionable analytics and intelligence among clients.
Market Intelligence &
Analytics (Ml&A) saw traction for its proprietary credit risk solutions,
and momentum in sustainability, research and consulting offerings.
The Research, Analytics
& Solutions segment grew 21.7% on-year in the quarter.
The company has expanded footprint
in Asia-Pacific with the acquisition of Peter Lee Associates.
The company has maintained
market-leading position in the Ratings business, driven by investor preference
for best-in-class ratings
The company generated new
insights for clients in corporate and investment banking (CIB), with combined
data sets from Coalition-Greenwich
It also expanded wallet
share with top clients in global CIBs and asset managers, and domestic
financial institutions.
The company has strengthened
credit monitoring practices for global banks by benchmarking and streamlining
processes.
The company has ramped up
digital and foundational infrastructure with sharp focus on cloud and infosec. It
launched Phoenix, a scalable and self-catering platform for faster, more
efficient data processing.
The company has rolled out Q2,
the integrated Qualitative and Quantitative benchmarking analytics. It also launched
the updated version of the next-gen big data analytics and reporting platform –
Fulkrum. It has developed new capabilities for non-financial data in Quantix
and enhanced Alphatrax.
Appreciation in the Indian
rupee and the British pound versus the US dollar had an adverse foreign
exchange impact in the first quarter of 2023, compared with a gain in the
corresponding quarter of the previous year. Movement in the US dollar versus
the Rupee and the British pound supported profitability in the year ended December
2022, which includes Rs 30.1 crore from revaluation of subsidiary loan.
The company sees many opportunities
to grow topline. The regulatory mandates following heightened scrutiny across
global banks is leading to opportunities in non-discretionary spends across
clients.
The platform simplification
and integration to optimize business operations, workflows and infrastructure
spend would drive growth for core risk, technology and managed services.
An increased demand for sustainability
leading to opportunities across ESG services, climate risk assessment and modeling.
There is strong demand
for analytics and data strategy, governance and quality across banks and
financial institutions
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