This article first appeared on GuruFocus .
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Revenue Growth 2023:13.4% increase, with both business segments registering double-digit growth.
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Expenses Growth 2023:Approximately 10% increase.
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PBT Growth 2023:Approximately 17% increase.
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PAT Growth 2023:16.7% increase.
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Q1 2024 Revenue Growth:3.2% increase, despite a strong base from Q1 2023.
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Q1 2024 PAT:Decreased by 5.5% due to increased tax rates in one ex-India jurisdiction.
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Corporate Bond Issuances Q1 2024:9% growth year-on-year.
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Bank Credit Growth Q1 2024:6.3% growth, driven by retail and service sectors.
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Domestic Ratings Revenue Q1 2024:Approximately 12% growth, driven by surveillance fees and new ratings from mid-corporates.
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Global Benchmarking and Analytics Revenue Growth 2023:Double-digit growth.
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New Client Logos 2023:29 new logos added in the GRRS business.
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Release Date: April 20, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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CRISIL Ltd ( BOM:500092 ) demonstrated resilience and significant impact through sustainability efforts and strategic initiatives in 2023 and Q1 2024.
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The company operates in 12 countries with a strong employee base of over 4,600, emphasizing diversity, equity, and inclusion.
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CRISIL Ltd ( BOM:500092 ) has been recognized as a great place to work for the fourth consecutive year and is among the 100 best companies for women in India.
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The company reported robust revenue growth of 13.4% in 2023, with both business segments registering double-digit growth.
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CRISIL Ltd ( BOM:500092 ) continues to invest in digital technology, talent, and new solutions, enhancing client offerings and internal workflows through GenAI.
Negative Points
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The global business faced challenges due to a slowdown in discretionary spending by global financial institutions.
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The company's PAT degrew by 5.5% in Q1 2024 due to increased tax rates in one of the ex-India jurisdictions.
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There is a cautious outlook for capital market issuances in the near term due to prevailing high interest rate conditions.
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The research, analytics, and solutions segment experienced volatility in margins, with Q1 2024 margins at 16%, down from previous quarters.
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Geopolitical tensions and macroeconomic uncertainties pose risks to the company's operations and client decision-making cycles.
Q & A Highlights
Q: Is there any slowdown being witnessed in this quarter, and will it persist throughout 2024? A: Amish Mehta, CEO, mentioned that there is slower decision-making and an impact on discretionary spending by global financial clients, which has affected the quarter. This trend may continue for the next few months, but CRISIL is addressing this by exploring new opportunities in regulatory, data analytics, and sustainability sectors.
Q: What should be considered as a steady state margin for the research services? A: Amish Mehta, CEO, advised looking at annual margins rather than quarterly ones, as the focus is on consistent margin growth across all businesses. Quarterly numbers can be affected by various factors, so annual margins provide a clearer picture.
Q: Do you have enough resources to achieve double-digit growth and margin improvement on a full-year basis despite global slowdown? A: Amish Mehta, CEO, stated that while they do not provide forward-looking outlooks, the focus remains on driving growth and improving margins consistently across the organization.
Q: What is the status of the ESG rating license application? A: Amish Mehta, CEO, confirmed that CRISIL has applied for the ESG rating license and is awaiting feedback from SEBI. There is no set deadline for SEBI to respond.
Q: How does the merger of IHS Markit with S&P Global impact CRISIL? A: Amish Mehta, CEO, explained that CRISIL is looking for opportunities to partner with different divisions of S&P Global based on their capabilities. They are continuously evaluating and working on potential partnerships to grow the business.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
