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Analyst Meet / AGM - Analyst Meet

Tremendous scope for Analytics business globally

Crisil

15-Feb-2018, 10:59
The company held its analyst meet on 14 February 2018 and was addressed by Ashu Suyash MD

Key Highlights

Synchronised growth was seen in global market in CY 2017. Interest rates will rise much faster than expected in the globe.

India saw growth coming back in later part of CY 2017. Expects India's GDP to grow by around 7.5% in FY 19. The reforms of GST and others will start showing results.

Recent regulations for insurance, pension and provident fund companies on allowing A grade ratings instead of only AA, will auger well for overall bond and credit market. Regulations also require now that 1/4^th need of large corporate borrowings have to be in form of bonds will result in more volumes in bond market.

Lot of reforms have been done on stamp duty and registration on financial securities transaction which will improve operational convenience to issuers.

Structured credit opportunities will emerge going forward in infrastructure sector particularly roads and railways.

Banking sector will continue to see near term challenges in form of NPAs and restructured assets. New guidelines on structured and stressed assets will lead to quick resolution of issues and better transparency which will be good in long term.

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.

Advanced analytics and new products were launched in CY 2017. Smart (financial research platform, SME first (platform for SME), Quantix (Integrated platform for India) Spark( financial platform for BFIS) are some of the platforms launched in global markets and in India. Infrastructure Rating scale was also introduced for infrastructure players and way forward dynamics.

Infrastructure conclave was launched. AMFI platform for mutual fund sector was launched. Lot of measures were taken for giving as much analytics as possible.

On geographical basis, around 35% of total revenue comes from India, and rest from UK and US and other parts of the world.

In Ratings business, the growth was led by debt offerings by large corporate. Large corporate ratings business growth was offset by slow down seen in bank loan ratings and SME ratings.

Large number of clients was added in Ratings business. Crisil was first rating agency to announce rating on hybrid annuity project in India. Initiated independent credit evaluation for stressed assets which was welcomed by the banking sector.

Overall, with revival in bank loan ratings, bond ratings in CY 2018, the segment should do well going forward.

Research business was impacted by adverse currency movement largely due to appreciating rupee. There was a forex loss of around Rs 16 crore in CY 2017 as compared to forex gain of Rs 10 crore for CY 2016.

Strong momentum and growth will continue to exist for global research analytical business. Company has a strong footing on the segment. Strong parent has always helped in this business.

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.