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CRISIL 2020-21 Annual Report Analysis

Fri, 31 Dec

CRISIL has announced its results for the year ended December 2021. Let us have a look at the detailed performance review of the company during FY20-21.

CRISIL Income Statement Analysis

• Operating income during the year rose 16.1% on a year-on-year (YoY) basis.
• The company's operating profit increased by 28.5% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.5% in CY21 as against 25.8% in CY20.
• Depreciation charges decreased by 12.5% and finance costs decreased by 37.9% YoY, respectively.
• Other income declined by 7.4% YoY.
• Net profit for the year grew by 31.3% YoY.
• Net profit margins during the year grew from 17.9% in CY20 to 20.2% in CY21.

CRISIL Income Statement 2020-21

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Net Sales	Rs m	19,818	23,007	16.1%
Other income	Rs m	832	770	-7.4%
Total Revenues	Rs m	20,650	23,777	15.1%
Gross profit	Rs m	5,106	6,563	28.5%
Depreciation	Rs m	1,211	1,060	-12.5%
Interest	Rs m	144	89	-37.9%
Profit before tax	Rs m	4,583	6,184	34.9%
Tax	Rs m	1,036	1,526	47.4%
Profit after tax	Rs m	3,547	4,658	31.3%
Gross profit margin	%	25.8	28.5
Effective tax rate	%	22.6	24.7
Net profit margin	%	17.9	20.2

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CRISIL Balance Sheet Analysis

• The company's current liabilities during CY21 down at Rs 8 billion as compared to Rs 8 billion in CY20, thereby witnessing an decrease of -1.0%.
• Current assets rose 19% and stood at Rs 15 billion, while fixed assets rose 11% and stood at Rs 26 billion in CY21.
• Overall, the total assets and liabilities for CY21 stood at Rs 40 billion as against Rs 35 billion during CY20, thereby witnessing a growth of 13%.

CRISIL Balance Sheet as on December 2021

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*	% Change
Networth	Rs m	12,570	15,331	22.0
Current Liabilities	Rs m	8,280	8,198	-1.0
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	35,436	40,203	13.5
Current assets	Rs m	12,235	14,517	18.6
Fixed Assets	Rs m	23,201	25,686	10.7
Total Assets	Rs m	35,436	40,203	13.5

CRISIL Cash Flow Statement Analysis

• CRISIL's cash flow from operating activities (CFO) during CY21 stood at Rs 4 billion on a YoY basis.
• Cash flow from investing activities (CFI) during CY21 stood at Rs -883 million on a YoY basis.
• Cash flow from financial activities (CFF) during CY21 stood at Rs -3 billion on a YoY basis.
• Overall, net cash flows for the company during CY21 stood at Rs 150 million from the Rs -642 million net cash flows seen during CY20.

CRISIL Cash Flow Statement 2020-21

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-20	Dec-21
Cash Flow from Operating Activities	Rs m	5,005	4,031	-19.5%
Cash Flow from Investing Activities	Rs m	-3,229	-883	-
Cash Flow from Financing Activities	Rs m	-2,651	-2,910	-
Net Cash Flow	Rs m	-642	150	-

Current Valuations for CRISIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 63.9, an improvement from the EPS of Rs 48.9 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 3,778.7, stands at 54.8 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 12.4 times, while the price to sales ratio stands at 8.3 times.
• The company's price to cash flow (P/CF) ratio stood at 33.4 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Sales per share (Unadj.)	Rs	273.0	315.7
TTM Earnings per share	Rs	48.9	63.9
Diluted earnings per share	Rs	48.6	63.8
Price to Cash Flow	x	36.9	33.4
TTM P/E ratio	x	45.2	54.8
Price / Book Value ratio	x	9.3	12.4
Market Cap	Rs m	116,458	190,855
Dividends per share (Unadj.)	Rs	33.0	46.0

Ratio Analysis for CRISIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 1.8x during CY21, from 1.5x during CY20. The current ratio measures the company's ability to pay short-term and long-term obligations.

Interest Coverage Ratio: The company's interest coverage ratio improved and stood at 70.3x during CY21, from 32.8x during CY20. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

• Profitability Ratios

Return on Equity (ROE): The ROE for the company improved and stood at 30.4% during CY21, from 28.2% during CY21. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 40.9% during CY21, from 37.6% during CY20. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

Return on Assets (ROA): The ROA of the company improved and stood at 11.8% during CY21, from 10.4% during CY20. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-20*	12 Dec-21*
Current ratio	x	1.5	1.8
Debtors’ Days	Days	566	632
Interest coverage	x	32.8	70.3
Debt to equity ratio	x	0.0	0.0
Return on assets	%	10.4	11.8
Return on equity	%	28.2	30.4
Return on capital employed	%	37.6	40.9

To see how CRISIL has performed over the last 5 years, please visit here.

CRISIL Share Price Performance

Over the last one year, CRISIL share price has moved up from Rs 1,907.2 to Rs 3,778.7, registering a gain of Rs 1,871.5 or around 98.1%.

Overall, the S&P BSE SENSEX is up 8.2% over the year.

(To know more, check out historical annual results for CRISIL and quarterly results for CRISIL)

Read: Latest Annual Report Analysis of CRISIL