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* CRISIL reported consolidated revenue from operations of ?6,830 million up by 19.6% YoY. Despite the challenging environment, CRISIL saw growth across businesses during Q3-CY22, with strong demand for bank loan ratings in India, and for benchmarking and risk solutions in global market. However, corporate bond issuances were muted. It continues to ramp up investments in talent and technology to build capabilities for providing differentiated solutions to clients

* Increased working capital requirements and stronger bank balance sheets are leading to a surge in bank credit growth, mainly in the services and MSME sectors. By contrast, corporate bond issuances by quantum saw 3% degrowth on-year in Q3-CY22, while the number of capital markets issuers fell 14%.

* CRISIL ratings segment revenue increased by 12.9% YoY in Q3-CY22, driven by increased traction in bank loan ratings. With the addition of new clients, the business continues to strengthen its market-leading position in corporate bond ratings.

* CRISIL research segment revenue increased by 22.0% YoY in Q3-CY22 as it continued its strong performance with growth being driven by both global businesses Global Research & Risk Solutions (GR&RS) and Global Benchmarking Analytics (GBA). GR&RS saw several client wins; GBA closed major renewal deals and rolled out the Client Intelligence platform for global banks. Non-ratings India businesses have been consolidated under CRISIL Market Intelligence and Analytics (MI&A) following the merger of CRISIL Risk and Infrastructure Solutions Ltd and Pragmatix Services Pvt Ltd with CRISIL Ltd. MI&A business saw traction for its credit risk and regulatory reporting solutions

* The EBITDA from operations for the quarter was up by 3.4% YoY at ?1,510 million with an operating margin of 22.2%. The company reported PAT of ?1,478 million for the quarter, up by 31.0% YoY with a net margin of 21.6% translating into EPS of ?20.23 per share for the quarter. The Board of Directors approved the payment of Interim dividend of ?10 per share.

* We continue to remain positive on CRISIL given its position as India’s foremost provider of ratings, data, research, analytics and solutions with strong track record of growth and global footprint providing services to 12,600+ clients. We maintain our BUY rating on the stock with a target price of ?4000 per share.

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