the entity) and a diversified business model. Further, its premium brand value, revival in research vertical, increasing traction in advisory segment and improvement in the number of issuance for bank loan ratings would enable to drive growth. On valuation front, we believe its revenue and pat has a...

CRISIL Ltd Q3CY18 results Comment Revenue fell by 2.43% to Rs. 425.46 Cr in Q3CY18 when compared to the previous quarter. On the other hand, it rose by 3.84% when compared with Q3CY17.

CRISIL's consolidated revenue grew by 7.1% YoY in Q2CY18 on the back of robust growth in advisory segment (38% YoY). Though EBITDA margin declined by 75 bps YoY to 24.6%, net profit increased by 14.7% YoY on account of favourable forex movement. We expect consolidated revenue to grow at a CAGR of 12 % over CY17-19E led by broad based growth across segments. With improvement in rating business, we expect EBITDA margin to...

CRISIL Ltd Q1CY18 results Comment Revenue decreased by 4.75% to Rs. 419.95 Cr in Q1CY18 when compared to the previous quarter. On the other hand, it rose by 4.63% when compared with Q1CY17. The Sales had been increasing from Q2CY17 to Q4CY17.

Revenue at ~Rs 4.4 bn grew 3% YoY in Q4 (CY17 at ~7%). Rating revenue declined ~2% YoY due to muted BLR and SME segment. Negative operating leverage (employee costs and profession fee) led to margin decline of ~300 bps in Q4. Lower depreciation and tax burden led to PAT growth of 5% YoY.

Revenues continue to disappoint: Crisil reported a growth of 5.6% YoY in its consolidated revenues from Rs3,887mn to Rs4,104mn. The company's rating business (30% of revenues) reported muted growth of 3%.This growth was once again fuelled by heightened capital market activity during the quarter. With subdued bank credit growth and industrial capex in the negative territory since a fairly long time, the company has been reporting dismal revenue growth. Also, significant reduction in the NSIC subsidy led to lower rating revenues from the SME space. On the research front (64% of revenues), the company reported a disappointing growth of 4.5%. Despite Global Research & Analytics registering new client wins and witnessing demand for regulatory controls and cost optimisation from global markets, the performance was...

CRISIL Ltd Q2CY17 results comment Revenue grew by 1.28% to Rs. 406.5 Cr in Q2CY17 when compared to the previous quarter

Revenues Almost In Line, EBITDA & PAT Surprise Positively Crisil reported a growth of 8.6% YoY in its consolidated revenues from Rs3,750mn to Rs4,073mn, 1.7% below our estimate. This 8.6% rise in revenues was backed by growth of 5.7%/9.2%/15.9% in the rating/research/advisory services offered by the company, respectively. Rating business growth was primarily driven by corporate debt ratings whereas the SME space witnessed a decline after the significant reduction in NSIC subsidy. The research segment delivered strong growth on account of new client additions in India Research & Global Research & Analytics, while the advisory business witnessed strong growth driven by new business wins and successful execution...

Revenue decreased by 5.77% to Rs. 401.35 Cr in Q1CY17 when compared to the previous quarter. On the other hand it rose by 11.92% when compared with Q1CY16.

CRISIL's 11.9% YoY Revenue growth in Q1CY17 was driven by pick-up in the research business while Operating margins came in largely in-line at 30.3%. However, adverse forex impact of Rs 11.9 cr led to flattish profit growth of Rs 73.3 cr. Though sluggish credit off-take and diminished prospects of SME segment due to government subsidy cut for FY18 could impact business in the near-term, we continue to like Crisil for it strong parentage, superior return ratios, and healthy dividend pay-outs.

Crisil reported a growth of 12% YoY in its consolidated revenues for 1QCY17 from Rs3,591mn to Rs4,022mn, 0.5% above our estimate. The 12% rise in revenues was backed by 4.3%/14.2%/31% growth in rating/research/advisory services, respectively, offered by the company. It was driven mainly by the research segment on account of new opportunities in risk & analytics. Rating business continued to remain subdued owing to the current economic environment. Advisory business reported good revenue growth for the quarter driven by new business wins. Operating profit, on the other hand, grew 3.2% YoY and stood at Rs1,106mn compared to Rs1,072mn in the quarter a year ago. This was in line with our estimate. Crisil reported operating margin of 27.5%, a...

Revenues: Crisil registered a growth of 12% over CY12-CY16 on the operating revenue front at Rs.15,472mn in CY16. Rating/research/advisory revenues grew 8%/14%/15%, respectively. Rating business: With muted bank loan activity and subdued credit growth, the bond market provided an impetus to rating revenues, leading to a growth of 8% for the year, particularly on account of refinancing activity in the wake of lower interest rates. The growth in bond market is expected to continue in the medium term. With the initiatives taken by the Reserve Bank of India or RBI to develop the bond market, Securities and Exchange Board of India (SEBI) guidelines regarding tighter disclosures for rating agencies and its draft guidelines on easing the issuance of commercial paper or CP are all big positives for the bond...

CRISIL Ltd is India's leading credit rating, research, risk & policy advisory company having pioneered the concept of credit rating in India in 1987. S&P, the world's leading credit rating agency by market share, is its major shareholder (67%).

Crisil reported a growth of 10.9%YoY in its consolidated revenues from Rs3,851mn to Rs4,269mn, 2.3% above our estimate of Rs4,172mn. The 10.9% growth in revenues was backed by growth of 13.5%/11.7%/(11.2%) in the rating/research/advisory services offered by the company. Total expenditure during the quarter increased 5.2% on YoY basis from Rs2,685mn to Rs2,826mn in the same quarter a year ago. Operating profit, on the other hand, grew 23.8% YoY and stood at Rs1,443mn compared to Rs1,166mn in the same quarter a year ago. This was 12.7% above our estimate of Rs1,280mn. The company reported operating margin of 33.8%, an increase of 353bps YoY from 30.3% and 540bps above our estimate. PAT grew 12.7% from Rs871mn to Rs981mn on...

Crisil's 3QCY16 revenues increased 8.2% to Rs3,887mn, 5% below our estimate, following a weak growth of 6.8% in its research business which has been the key revenue driver for the company, Sector: Credit Rating contributing approximately 65% to total revenues. Crisil's Global Research & Analytics (GRA) division witnessed moderate seasonality owing to changes in the timelines for regulatory CMP: Rs2,347 submissions as well as postponement of certain regulatory milestones and will do so in the near term, although it continued to grow by launching new product offerings and adding new marquee Target Price: Rs2,320...

Crisil's 1QCY16 revenue increased 16.6% to Rs3,587mn, in line with our estimate, following a strong 21.8% growth in research business revenues. Crisil Global Research and Analytics (GRA) witnessed strong growth in revenue, driven by changing regulatory environment and a weak Indian rupee (INR). The global financial research service business grew on the back of traction from clients in credit research and risk service space. Analytics business delivered robust performance driven by strong growth in stress testing, model validation and regulatory support services. However, following a one-third decline in subsidy provided by the government on SME ratings (in FY16), and muted growth because of weak credit offtake and...

Economic recovery to boost revenues across business segments: The rating revenues witnessed 8% growth in 2014 compared to last year. Research andadvisory revenues were up 16% and 14% respectively. Research segment profitability grew by 6% on account of improved performance by GR&A (Global Research & Analytics). Ratings profitability was marginally up by 1% due to sluggish business environment. The advisory segment witnessed a fall in profitability of around 12% on account of challenging business environment. Going forward, the consolidated revenues are likely to grow on the back of debt issuances by corporations and financial institutions which in turn can improve the businesses for CRISIL.

Crisil's 3QCY15 revenue increased 14.6% to Rs3,594mn, 3.9% above our estimate, following a 23.9% growth in research revenue. Crisil Global Research and Analytics (GRA) witnessed strong growth driven by increase in demand from clients in the US and Europe. Crisil added a substantial volume of work in model validation, stress testing and risk management services in the Risk and Analytics vertical. With better revenue growth, the research division's EBIT margin improved 541bps to 33.8%. However, following a one-third decline in subsidy provided by the government on SME (small and medium enterprise) ratings, accounting for ~20% of Crisil's rating revenue, and muted growth in bank loan ratings because of sluggish credit offtake and pricing pressure, rating revenue declined 0.2% to Rs1,087mn, 2% below our...

Crisil's 2QCY15 revenue increased 8% to Rs3,296mn, 6.5%/3.0% above our/Bloomberg estimates, respectively, following a 15.3% growth in research revenue. Most of the incremental revenue in research came from new areas and new clients, with banks facing sustained pressure from new regulations. With better revenue, the research division's EBIT margin improved 422bps to 30.4%. Following a one-third decline in subsidy provided by the government on SME (small and medium enterprise) ratings, volume in SME ratings fell significantly and as a result rating revenue declined 3.0% to Rs1,086mn and EBIT margin slipped 221bps to 33.1%. With better performance of the research...

Weak SME Rating Revenue, GBP/Euro Depreciation Play Spoilsport Crisil's 1QCY15 revenue declined 0.5% to Rs3,076mn, 13.9%/10.0% below our/Bloomberg estimates, respectively, following a 9.5% fall in revenue from rating segment because of weakness in SME (small and medium enterprise) rating business and a mere 6.1% growth in research revenue impacted by depreciation of the Euro and Great Britain Pound (GBP) versus the Indian Rupee (INR). Despite all expenses under control, operating margin fell 517bps to 28.1% led by revenue decline of high-margin rating division and weak revenue of research division. Following subdued revenue and fixed overheads, PAT declined 18%...