CRISIL Q4FY24 - An Analysis

CRISIL's Q3FY2024 performance reflected the resilience of its operations amidst global macroeconomic uncertainties.

Positives:

? CRISIL demonstrated solid revenue growth of 13.4% in FY2023, with both the Ratings and Research segments registering double-digit growth across all businesses.

? The Ratings business benefited from strong corporate bond issuances in the first half of FY2023, and healthy demand from mid-corporates.

? The company's Global Benchmarking Analytics (GBA) business delivered robust double-digit revenue growth in FY2023 by increasing penetration among global investment banks and expanding into regional players.

? CRISIL continues to strengthen its partnership with S&P Global Ratings, supporting them across various workflows and geographies through the Global Analytical Center (GAC).

? The management highlighted CRISIL's focus on enhancing margins consistently across businesses by leveraging operating leverage, driving productivity, and adopting digital technologies.

Areas to Monitor:

? In Q3FY2024, CRISIL witnessed a slowdown in discretionary spending by global financial institutions, impacting the performance of the Global Risk and Research Solutions (GRRS) segment.

? The management refrained from providing specific revenue or margin guidance, citing the company's policy of not offering forward-looking statements.

? The competitive landscape in the Ratings segment remains intense, and the ability to maintain pricing power amidst market fluctuations will be crucial.

? Geopolitical risks, including ongoing conflicts and elections across multiple countries, could impact global business sentiments and decision-making cycles.

Investors should closely monitor the company's ability to sustain revenue momentum, expand margins, and leverage its capabilities to capture emerging trends such as sustainability and regulatory compliance across global markets.