CRISIL 2022-23 Annual Report Analysis

Tue, 26 Mar

CRISIL has announced its results for the year ended December 2023. Let us have a look at the detailed performance review of the company during FY22-23.

CRISIL Income Statement Analysis

• Operating income during the year rose 13.4% on a year-on-year (YoY) basis.
• The company's operating profit increased by 20.8% YoY during the fiscal. Operating profit margins witnessed a fall and down at 28.1% in CY23 as against 26.4% in CY22.
• Depreciation charges increased by 0.5% and finance costs decreased by 42.8% YoY, respectively.
• Other income declined by 23.5% YoY.
• Net profit for the year grew by 16.7% YoY.
• Net profit margins during the year grew from 20.4% in CY22 to 21.0% in CY23.

CRISIL Income Statement 2022-23

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Net Sales	Rs m	27,687	31,395	13.4%
Other income	Rs m	1,225	936	-23.5%
Total Revenues	Rs m	28,912	32,332	11.8%
Gross profit	Rs m	7,296	8,815	20.8%
Depreciation	Rs m	1,033	1,038	0.5%
Interest	Rs m	64	37	-42.8%
Profit before tax	Rs m	7,424	8,677	16.9%
Tax	Rs m	1,780	2,093	17.6%
Profit after tax	Rs m	5,644	6,584	16.7%
Gross profit margin	%	26.4	28.1
Effective tax rate	%	24.0	24.1
Net profit margin	%	20.4	21.0

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CRISIL Balance Sheet Analysis

• The company's current liabilities during CY23 stood at Rs 10 billion as compared to Rs 9 billion in CY22, thereby witnessing an increase of 6.7%.
• Current assets rose 19% and stood at Rs 21 billion, while fixed assets rose 14% and stood at Rs 11 billion in CY23.
• Overall, the total assets and liabilities for CY23 stood at Rs 32 billion as against Rs 28 billion during CY22, thereby witnessing a growth of 17%.

CRISIL Balance Sheet as on December 2023

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*	% Change
Networth	Rs m	17,591	21,587	22.7
Current Liabilities	Rs m	9,438	10,069	6.7
Long-term Debt	Rs m	0	0	0.0
Total Liabilities	Rs m	27,516	32,288	17.3
Current assets	Rs m	17,612	20,973	19.1
Fixed Assets	Rs m	9,904	11,315	14.2
Total Assets	Rs m	27,516	32,288	17.3

CRISIL Cash Flow Statement Analysis

• CRISIL's cash flow from operating activities (CFO) during CY23 stood at Rs 8 billion, an improvement of 71.0% on a YoY basis.
• Cash flow from investing activities (CFI) during CY23 stood at Rs -3 billion, an improvement of 430.1% on a YoY basis.
• Cash flow from financial activities (CFF) during CY23 stood at Rs -4 billion on a YoY basis.
• Overall, net cash flows for the company during CY23 stood at Rs 469 million from the Rs 293 million net cash flows seen during CY22.

CRISIL Cash Flow Statement 2022-23

Particulars	No. of months	12	12	% Change
	Year Ending	Dec-22	Dec-23
Cash Flow from Operating Activities	Rs m	4,563	7,803	71.0%
Cash Flow from Investing Activities	Rs m	-616	-3,267	-
Cash Flow from Financing Activities	Rs m	-3,683	-4,077	-
Net Cash Flow	Rs m	293	469	59.8%

Current Valuations for CRISIL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 90.1, an improvement from the EPS of Rs 77.3 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 4,339.5, stands at 48.2 times its trailing twelve months earnings.
• The price to book value (P/BV) ratio at current price levels stands at 14.7 times, while the price to sales ratio stands at 10.1 times.
• The company's price to cash flow (P/CF) ratio stood at 35.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Sales per share (Unadj.)	Rs	379.0	429.4
TTM Earnings per share	Rs	77.3	90.1
Diluted earnings per share	Rs	77.2	90.1
Price to Cash Flow	x	33.6	35.2
TTM P/E ratio	x	39.7	48.2
Price / Book Value ratio	x	13.4	12.4
Market Cap	Rs m	235,485	268,307
Dividends per share (Unadj.)	Rs	48.0	54.0

Ratio Analysis for CRISIL

• Solvency Ratios

Current Ratio: The company's current ratio improved and stood at 2.1x during CY23, from 1.9x during CY22. 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 238.1x during CY23, from 117.0x during CY22. 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 declined and down at 30.5% during CY23, from 32.1% during CY23. 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 declined and down at 40.4% during CY23, from 42.6% during CY22. 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 declined and down at 20.5% during CY23, from 20.7% during CY22. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending		12 Dec-22*	12 Dec-23*
Current ratio	x	1.9	2.1
Debtors’ Days	Days	1,000	802
Interest coverage	x	117.0	238.1
Debt to equity ratio	x	0.0	0.0
Return on assets	%	20.7	20.5
Return on equity	%	32.1	30.5
Return on capital employed	%	42.6	40.4

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 down from Rs 3,281.1 to Rs 3,212.4, registering a loss of Rs 68.7 or around 2.1%.

Overall, the S&P BSE SENSEX is up 1.8% over the year.

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