Key Highlights

CY 2017 saw launches of lots of new products and innovations. This was true across all the business segments of the company. Expects the benefits of these launches to continue to flow for the next few years.

While corporate bond issue was muted in Mar 18 quarter and was so during the whole CY 17 as well, bank loan ratings helped in generating higher volumes.

Continuous need of increasing regulatory requirements in international market has led to more clients and more businesses in global research and analysis segment.

Tremendous scope for Analytics business globally. Analytics is central to every decision making process and as more and more complex structured product introduction in the globe would see a continued increase in the scope of the business.

In advisory service business, the company increased its reach in international markets such as South East Asia and Africa.

Episodes like Letter of undertakings (LOU), Letter of Intent (LOI) and other non fund based limits and sanctions were unfortunate, will lead to higher regulatory requirements in future and thus higher needs of ratings in the non fund bank business, which was otherwise not so much in India.

Overall, outlook for CY 18 is optimistic for the company as new products, innovations, new markets and new clients will drive higher volumes.

Expects interest rates to increase globally in CY 2018.

International Trade war and other political issues will continue to hurt global trade and will keep a check on international businesses. Expects the war to continue for the rest of the year, as every country is trying to protect its interest in a scenario of overall low GDP growth across the globe. Every country is trying to curb imports to generate whatever local growth that is possible.

While outlook for the CY 18 continues to be cautious across the globe, there is improvement seen in GDP in India, US and some other major economies.

India in particular should do well in CY 18, although local political disruption is the only setback. GST benefits along with a pick up in industrial production should auger well for the country.

Banking sector will continue to see near term challenges in form of NPAs and restructured assets. Expects the issues to remain in CY 18 as well, although should pick out in Mar 18 quarter itself. Overall Credit growth was in single digit in CY 2016 and in CY 2017 as well. Hope credit growth to see improvement in H2 of CY 2018.

Advisory business improved a lot and is in profits. Due to regulatory and hybrid products introduction, together with improvement in infrastructure, power and road projects going forward, the segment should do well in coming year as well.

Company will continue to deliver on strong payout ratios going forward as well.