CRISIL's Performance and Operations - Annual Report FY 2023-24

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CRISIL at a Glance

- Clientele and Operations: CRISIL has served over 100,000 clients through its diverse business lines across 12 countries, showcasing a significant global footprint.

- Employee Diversity: The company employs over 4,600 individuals representing more than 40 nationalities. Women make up 39% of the global workforce, reflecting CRISIL's commitment to diversity and inclusion.

- Innovation and Excellence: With a 37-year history of innovation, CRISIL has been a pioneer in the analytics and ratings industry.

Impact and Outreach

- Community Engagement: Through the CRISIL Foundation, the company has empowered 659,000 rural citizens in India, helping unlock economic opportunities.

- Industry Leadership: As a leading provider of strategic benchmarking analytics, CRISIL delivers actionable insights to over 300 clients in the global financial services sector.

Read More: Crisil Share Price

Financial Performance

Consolidated Operations (2023)

- Income and Growth: Total income reached ₹3,233.16 crore, an 11.8% increase from ₹2,891.19 crore the previous year.

- Expenses: Total expenses were ₹2,365.46 crore, compared to ₹2,148.79 crore in the prior year.

- Profit Before Tax: Ended at ₹867.70 crore, up from ₹742.40 crore, including a one-off gain of ₹29.4 crore due to the devaluation of the Argentinian peso.

- Profit After Tax: Increased to ₹658.44 crore from ₹564.39 crore in the previous financial year.

Read More: Crisil Quarterly Results

Standalone Operations (2023)

- Income and Growth: Total income was ₹2,121.62 crore, up from ₹1,716.95 crore in the previous year.

- Expenses: Rose to ₹1,358.24 crore from ₹1,275.09 crore.

- Profit Before Tax: Improved significantly to ₹763.38 crore from ₹441.86 crore.

- Profit After Tax: Grew to ₹668.26 crore from ₹370.51 crore.

Dividend and Share Capital

- Dividend Policy: The Directors have proposed a final dividend of ₹28 per equity share of face value ₹1 each for the financial year. Including three interim dividends (₹7, ₹8, and ₹11 per share), the total dividend for 2023 amounts to ₹54 per share, compared to ₹48 per share in the previous year.

- Share Capital Trends: During the year, CRISIL issued 49,561 equity shares to employees under the stock option plan, increasing the issued, subscribed, and paid-up equity share capital to 73,113,605 shares of ₹1 each.

Sectoral Performance

- Ratings Agency: Maintains approximately 7,000 active ratings.

- SME Assessments: Has graded and assessed around 150,000 small and medium enterprises.

Segment-wise Financial Results Breakdown

Business Segments

CRISIL has categorised its operations into two key business segments in accordance with the Indian Accounting Standard on Operating Segment (Ind AS-108):

1. Ratings Services

2. Research, Analytics, and Solutions

Review of Operations: Ratings Services

Highlights:

- New Bank Loan Ratings (BLRs): Announced over 1,200 new BLRs; maintains approximately 7,000 active company ratings.

- Corporate Bond Market: Strengthened leadership, favoured for high-quality ratings by both investors and issuers.

- Analytical Rigour: Maintained a sharp focus on high-quality ratings.

- Outreach Initiatives: Launched and received extensive media coverage and stakeholder appreciation for various high-profile initiatives.

Read More: Annual Results

Market Dynamics and Performance:

- Growth Drivers: Supported by an increase in bond market issuances and steady bank credit growth.

- Bond Issuance Trends: Experienced a surge in corporate bond issuances by over 90% in the first half of the year, though faced a slowdown in the second half due to geopolitical uncertainties and rising bond yields.

- Bank Credit Growth: Reported a 15.6% increase in 2023, with retail credit growing at 17.7% and services credit at 19.6%.

- Large Corporate Credit: Grew by 6.5% but showed signs of tapering in the latter part of the year.

- Securitization Volume: Increased investor appetite and normalisation of collections boosted growth in securitization.

- Revenue Growth: Achieved a healthy 17% year-on-year revenue growth in 2023.

Competitive Landscape and Initiatives:

- Market Share: Sustained market share amidst increased competition, with a preference for quality ratings noted among Indian banks.

- Analytical Quality: Continued to demonstrate robust performance metrics, including low default rates and high stability rates.

- Early Warning Mechanism: Enhanced the Corporate Credit Health Framework to proactively identify and prioritise ratings reviews in sectors impacted by macroeconomic changes.

- Regulatory Developments: Noted publication of a SEBI operational or master circular consolidating past circulars affecting CRAs.

Engagement and Thought Leadership:

- Industry Conferences: Hosted the first 'Infrastructure Summit—Revving Roads and Renewables' and the annual flagship seminar on the NBFC sector.

- Regional Engagement: Conducted Ratings Regional Conclaves in Tier 2 regions to deepen client engagement and discuss industry trends.

- Franchise Activities: Conducted well-received webinars on multiple sectors including renewable energy, infrastructure, roads, cement, steel, natural gas, specialty chemicals, power, and real estate.

Global Analytical Center (GAC):

- Support Functions: Continued to provide crucial surveillance support across S&P Ratings' analytical practices.

- Partnerships: Collaborated on data and technology transformation programs.

About CRISIL

CRISIL is a globally renowned analytics company recognized for its agility and innovation. Our core mission is to enhance market functionality through our comprehensive services. As India's premier provider of ratings, data, research, analytics, and solutions, we distinguish ourselves with a robust growth history, a culture steeped in innovation, and a significant global presence. Operating across key international markets including the United States, the United Kingdom, Argentina, Poland, China, Hong Kong, Singapore, and the United Arab Emirates, we have provided independent, actionable insights and efficient solutions to over 100,000 clients. CRISIL is primarily owned by S&P Global Inc., a world leader in transparent and independent ratings, benchmarks, analytics, and data serving capital and commodity markets globally.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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