Incred Capital Financial Services Limited (Incred Capital) Return Comparision with Primex 40 Index

Periods	1 Week	1 Month	3 Months	6 Months	1 Year	3 Years	All Time
Primex-40
Incred Capital Financial Services Limited

InCred Capital Financial Services Limited Consolidated Balance Sheet (Rs. in Crores)

Particulars	31-03-2025	31-03-2024
Non-current assets
Plant, property and equipment	54.63	17.78
Capital work in progress	0.12	0.38
Goodwill	53.80	10.47
Other intangible assets	40.41	46.20
Intangible assets under development	0.11	0.17
Non current investment	433.87	198.77
Loans	151.77	38.99
Other non current financial assets	11.01	9.11
Deferred tax assets	58.23	56.35
Other non current assets	1.55	4.17
Current assets
Current Investment	487.50	159.20
Trade receivables	46.68	21.91
Cash and cash equivalent	488.97	230.68
Bank and other balances	7.82	75.05
Loans	255.63	516.85
Other current financial assets	18.26	9.85
Current tax assets	12.62	4.50
Other current assets	22.67	8.83
Total assets	2,145.66	1,409.27
Equity
Equity share capital	14.21	13.21
Other equity	838.53	447.15
Non controlling interest	0.47	42.46
Non-Current liabilities
Non current borrowing	582.39	425.45
Other financial liabilities	42.60	5.81
Non current provisions	7.44	3.64
Current liabilities
Trade payables – outstanding dues of micro and small enterprises	-	-
Trade payables – outstanding dues other than above	27.80	23.74
Borrowing	503.07	364.65
Other current financial liabilities	104.41	77.15
Current provisions	16.52	0.12
Other current liabilities	8.22	5.87
Total equity and liabilities	2,145.66	1,409.27

InCred Capital Financial Services Limited Consolidated Profit & Loss Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Income
Revenue from Operations	507.68	331.25
Other Income	49.23	22.50
Total Income	556.91	353.76
Expenses
Employee benefits expense	300.61	197.32
Finance costs	90.11	71.88
Purchase of commodity	-	7.95
Depreciation & amortization expense	16.43	11.44
Other Expenses	103.76	71.85
Total Expenses	510.91	360.44
Profit before share of associate	46.00	-6.68
Share of associate	3.87	-6.12
Profit before exceptional items	49.87	-12.80
Exceptional items	-	-5.66
Profit/(loss) before tax	49.87	-18.47
Current Tax expenses	15.33	10.55
Deferred tax expense	0.05	-7.19
Pertaining to earlier years	-3.48	0.30
Profit/ Loss after tax	37.97	-22.12
Other comprehensive income for the year
Remeasurement of defined benefit plan	-2.40	-0.36
Income tax relating to above	0.62	0.07
Share of loss associate	-0.03	-
Total comprehensive income for the year	36.16	-22.47
Earning per share
Basic	29.03	-17.34
Diluted	28.06	-17.34

InCred Capital Financial Services Limited Consolidated Cash Flow Statement (Rs in Crores)

Particulars	31-03-2025	31-03-2024
Cash Flow from Operating Activities
Net Profit/(loss) Before Tax	49.87	-12.80
Adjustment for -:
Depreciation and amortisation	16.43	11.44
Sale of investment	-315.25	-189.22
Interest income on loans	-34.44	-19.67
Interest income on investment	-18.55	-
Share based payment to employees	14.91	23.81
Rent expense	1.51	0.18
Allowance for credit loss	0.32	6.62
Loss in change in control in subsidiary	1.27	-
Loss on sale of fixed assets	-	-
Movement in reserves	-37.03	-
Interest on unwinding of financial liabilities	2.24	0.95
Interest on unwinding of financial assets	-0.27	-0.19
Adjustment for change in working capital
Trade receivables	-25.09	4.95
Other financial assets	-10.04	44.83
Deferred tax assets	-1.88	-
Other non financial assets	-11.22	-6.46
Trade payables	4.05	14.71
Other financial liabilities	60.30	51.30
Other non financial liabilities	2.35	2.39
Provisions	20.20	1.58
Cashflow generated from operations	-280.32	-65.56
Income tax paid	-8.12	17.58
Net Cash from/(used in) Operating Activities	-288.44	-47.97
Cash Flow from Investing Activities
Purchase of PPE	-53.28	-10.45
Purchase of intangible assets	-37.48	-0.06
Capital work in progress	0.27	-0.10
Purchase of associate company	-	-13.11
Purchase of investment	-249.43	-13,717.68
Sale of majority stake in subsidiary	-	-
Proceeds from sale of investment	-	13,834.26
Net proceeds from loans	148.44	-429.19
Interest income on investment	18.55	-
Interest income on loans	34.44	19.67
Investment in FD with maturity more than 3 months	67.23	-75.05
Net Cash from / (used in) Investing Activities	-71.26	-391.71
Cash Flow from Financing Activities
Borrowings	295.35	659.00
Proceeds from issue of share warrants	62.50	-
ESOP expense	-20.27	-
Proceeds from issuance of equity share capital	1.00	-
Securities premium	279.41	-2.70
Others	-	-4.56
Net Cash from/(used in) Financing Activities	617.99	651.74
Net Increase/decrease in Cash & cash equivalents	258.29	212.06
Cash and cash equivalents at the beginning of the year	230.68	18.62
Cash and cash equivalents at the end of the year	488.97	230.68

Summary of the Cash Flow Statement for the years 2025 and 2024:

Cash Flow from Operating Activities

In FY 2024-25, InCred Capital Financial Services Limited reported a net profit before tax of Rs. 49.87 crores compared to a loss of Rs. 12.80 crores in the previous year, indicating an improvement in profitability. However, despite the positive profit, the company generated negative operating cash flows of Rs. 288.44 crores against negative operating cash flows of Rs. 47.97 crores in FY 2023-24. Major non-cash adjustments included depreciation and amortisation of Rs. 16.43 crores and employee share-based payment expenses of Rs. 14.91 crores. Significant deductions from operating profit arose due to gains from sale of investments amounting to Rs. 315.25 crores and interest income from loans and investments totaling Rs. 52.99 crores. Working capital movements also adversely impacted cash flows, primarily due to increases in trade receivables, other financial assets, and non-financial assets. Although trade payables, other financial liabilities, and provisions increased during the year, these were insufficient to offset the overall cash outflows. The negative operating cash flow suggests that the company’s core operations and working capital requirements consumed substantial cash during the year.

Cash Flow from Investing Activities

Cash flow from investing activities improved significantly during FY 2024-25, with net cash outflow reducing to Rs. 71.26 crores compared to Rs. 391.71 crores in FY 2023-24. The company invested heavily in fixed assets and intangible assets amounting to Rs. 53.28 crores and Rs. 37.48 crores respectively, indicating expansion and technology-related investments. Investments purchased during the year amounted to Rs. 249.43 crores, substantially lower than the previous year’s Rs. 13,717.68 crores. The company also generated positive inflows from net proceeds from loans of Rs. 148.44 crores and earned interest income from investments and loans totaling Rs. 52.99 crores. Additionally, redemption or reduction in fixed deposits with maturity exceeding three months contributed Rs. 67.23 crores to cash inflows. Overall, the investing activities reflect a more balanced investment approach compared to the previous year, with controlled capital deployment and improved recovery of funds.

Cash Flow from Financing Activities

Financing activities remained the primary source of cash inflows for the company during FY 2024-25. Net cash generated from financing activities stood at Rs. 617.99 crores, slightly lower than Rs. 651.74 crores in the previous year. The company raised Rs. 295.35 crores through borrowings and further strengthened its capital base by issuing share warrants amounting to Rs. 62.50 crores and equity share capital along with securities premium totaling Rs. 280.41 crores. However, the company also recorded ESOP-related cash outflows of Rs. 20.27 crores. The strong financing inflows indicate continued investor confidence and the company’s reliance on external funding to support operational and investment requirements.

Net Increase/decrease in Cash & Cash Equivalents

As a result of the above activities, cash and cash equivalents increased significantly by Rs. 258.29 crores during FY 2024-25 compared to an increase of Rs. 212.06 crores in FY 2023-24. Consequently, the closing cash and cash equivalents balance rose to Rs. 488.97 crores from Rs. 230.68 crores at the beginning of the year. The substantial increase in cash reserves was mainly supported by strong financing inflows despite negative cash generation from operating activities

Financial ratios of InCred Capital Financial Services Limited.

Particulars	31-03-2025	31-03-2024
Current ratio	1.70	1.03
Debt equity ratio	0.82	0.92
Debt service coverage ratio	0.18	0.04
Return on equity	0.13%	2.69%
Trade receivables turnover ratio	24.55	10.86
Trade payables turnover ratio	7.60	5.39
Net capital turnover ratio	0.46	9.63
Net profit %	0.01	0.13
Return on capital employed	0.05	0.06
Return on investment	0.05	0.07

Summary of Financial Ratios for the year 2025 and 2024.

Current Ratio

The current ratio of InCred Capital Financial Services Limited improved significantly from 1.03 in FY 2023-24 to 1.70 in FY 2024-25. This indicates a stronger short-term liquidity position and suggests that the company has improved its ability to meet current liabilities using current assets. A ratio above 1 reflects adequate liquidity, and the substantial increase demonstrates better working capital management during the year.

Debt Equity Ratio

The debt-equity ratio declined from 0.92 in FY 2023-24 to 0.82 in FY 2024-25, indicating a reduction in financial leverage. This suggests that the company relied relatively less on borrowed funds and strengthened its equity base during the year. A lower debt-equity ratio reflects improved long-term solvency and reduced financial risk for the company.

Debt Service Coverage Ratio

The debt service coverage ratio (DSCR) improved from 0.04 to 0.18 during FY 2024-25. Although the ratio remains low and below the ideal benchmark of 1, the increase indicates some improvement in the company’s ability to service its debt obligations from operating earnings. However, the low DSCR still suggests that debt repayment capacity remains weak and may require continued monitoring.

Return on Equity

The return on equity (ROE) declined sharply from 2.69% in FY 2023-24 to 0.13% in FY 2024-25. This indicates that despite reporting profits during the year, the company generated significantly lower returns for shareholders compared to the previous year. The decline may be attributed to increased equity capital and relatively lower net profitability during the year.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio increased substantially from 10.86 to 24.55 in FY 2024-25. This improvement reflects better efficiency in collecting receivables and faster conversion of credit sales into cash. A higher turnover ratio indicates effective credit management policies and improved liquidity arising from quicker collections.

Trade Payables Turnover Ratio

The trade payables turnover ratio improved from 5.39 in FY 2023-24 to 7.60 in FY 2024-25. This suggests that the company paid its suppliers more quickly during the year. While a higher ratio may indicate stronger payment capacity and improved credibility with vendors, it may also reduce the benefit of extended credit periods.

Net Capital Turnover Ratio

The net capital turnover ratio declined sharply from 9.63 to 0.46 in FY 2024-25. This significant decrease indicates lower efficiency in utilizing working capital to generate revenue. The fall may have resulted from increased current assets, lower revenue generation, or changes in business operations during the year.

Net Profit Percentage

The net profit percentage decreased from 0.13% in FY 2023-24 to 0.01% in FY 2024-25. This reflects a decline in overall profitability and indicates that the company earned a very small margin on its revenues during the year. Rising operational expenses or reduced revenue growth may have contributed to the lower profit margin.

Return on Capital Employed

The return on capital employed (ROCE) decreased slightly from 0.06 to 0.05 in FY 2024-25. This indicates a marginal decline in the company’s efficiency in generating profits from its total capital employed. The lower ROCE suggests that capital utilization was relatively less effective during the year.

Return on Investment

The return on investment (ROI) declined from 0.07 in FY 2023-24 to 0.05 in FY 2024-25. This indicates lower returns generated from the company’s investments during the year. The reduction may be attributed to subdued profitability and lower income generated from investment activities compared to the previous year.