CRISIL upgrades long-term rating of InCred Finance to ‘AA-/Stable’ from ‘A /Stable’
Leading credit ratings agency CRISIL has upgraded the long-term rating for InCred Finance to ‘CRISIL AA-/Stable’ from the earlier rating, which was ‘CRISIL A /Stable’. The upgrade in the ratings was on the back of strong capitalization of the company supported by high pedigree of investor base, coupled with steady improvement in earnings profile.
The ratings also factored in InCred’s diversified loan portfolio. InCred Finance reported a net worth of Rs. 3,218 crore as on December 31, 2023, compared to Rs. 2,484 crore as on March 31, 2023. InCred Finance’s loan book grew to Rs. 8,013 crore as on December 31, 2023, marking an annualized growth of 43 per cent over that as on March 31, 2023 when it was at Rs. 6,062 crore.
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The increase in net-worth was supported by the Rs. 500 crore equity capital raised by the company in December 2023 along with profit accretion during the period. The upgrade also comes on the back of significant growth reported by the firm, underpinned by a big jump in profitability with 9M 2024 profit-before-tax (PBT) of Rs. 298 crore, registering a growth of 132 per cent year-on-year.
InCred Finance has built deep moats around its businesses through best in class underwriting and risk analytics engines, a robust and scalable tech delivery platform, and an extensive on-ground customer support and collections infrastructure.
“The rating upgrade is a huge endorsement of our “risk first” ethos across the firm. Innovation in product and technology, coupled with class leading risk analytics, and a talent pool that is second to none, have been instrumental in shaping our growth story and giving us a clear edge,” said Bhupinder Singh, Founder & Group CEO, InCred
‘’It makes me immensely proud that in a rapidly evolving and competitive market like India, InCred Finance has established a strong position in Consumer and MSME lending,” said Singh. The company sees a rapid month-on-month growth trajectory and steady credit costs. The cost-to-income ratio for the company also saw a decline from 56 per cent to 44 per cent.
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Published: 15 Mar 2024, 06:11 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.