Incred Capital Annual Report, Balance Sheet & Financials

Incred Capital Financial Services Consolidated Balance Sheet (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Non-current assets
Property, Plant and equipments	1,777.95	1,292.61
Capital work in progress	38.29	28.11
Goodwill	1,046.84	1,363.84
Other Intangible assets	4,620.48	5,203.70
Intangible assets under development	17.09	11.34
Non current Investment	19,877.31	8,587.17
Loans	3,899.31	4,205.46
Others non-current financial assets	911.29	138.39
Deferred tax assets (net)	5,634.99	4,909.20
Other non current assets	416.62	25.84
Current Assets
Current Investments	15,919.75	17,402.58
Trade Receivables	2,190.81	2,685.65
Cash and cash Equivalents	23,068.01	1,862.22
Bank balance other than cash and cash equivalents	7,505.36	-
Loans	51,684.05	8,459.83
Other financial assets	984.86	6,241.15
Current tax assets	449.72	1,153.67
Other current assets	884.41	628.32
Total Assets	140,927.14	64,199.08
Equity
Equity Share Capital	1,321.14	1,321.14
Other Equity	44,715.33	45,132.04
Equity attributable to non-controlling interest	4,246.00	-
Non-Current Liabilities
Non-current Borrowings	42,545.29	13,110.72
Other financial liabilities	580.88	396.85
Non-current provisions	364.43	206.62
Current Liabilities
Total outstanding dues of creditors other than micro and small enterprises	2,374.28	902.78
Borrowings	36,465.31	-
Other Current financial liabilities	7,715.28	2,768.83
Current Provisions	12.03	12.06
Other non-financial liabilities	587.17	348.04
Total Equity and Liabilities	140,927.14	64,199.08

Incred Capital Financial Services Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Income
Revenue from Operations	33,125.10	15,195.77
Other Income	2,250.58	1,253.76
Total Revenue from Operations	35,375.68	1,253.76
Expenses
Employee benefit expenses	19,731.84	15,038.01
Finance costs	7,188.44	732.84
Purchase of commodity	794.77	-
Depreciation, amortization and Impairment	1,143.98	1,008.15
Other Expenses	7,185.18	6,444.66
Total Expenses	36,044.21	23,223.66
Profit/(Loss) before share of loss of associates	-668.53	-6,774.13
Share of loss of associates	-611.72	-70.45
Profit/(Loss) before exceptional items and tax	-1,280.25	-6,844.58
Exceptional items	-566.57	-2,603.00
Profit/(Loss) before tax	-1,846.82	-9,447.58
Current Tax	1,054.79	-
Deferred Tax	-719.21	-2,235.04
Pertaining for earlier years	30.17	39.79
Profit/(Loss) for the year	-2,212.57	-7,252.33
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Remeasurement of the defined benefit plans	-36.47	-29.82
Income tax relating to items that will not be reclassified	6.61	9.59
Share of loss of associates	0.29	-4.22
Items that will be reclassified to profit or loss:
Net gain/(Loss) on instruments through other comprehensive income	-5.36	-
Total Other comprehensive Income	-34.93	-24.45
Total Comprehensive Income for the period	-2247.50	-7276.78
Profit for the year attributable to:
Owners of the parent	-1976.01	-
Non controlling Interest	-236.56	-
Other Comprehensive Income for the year attributable to:
Owners of the parent	-34.93	-
Total Other Comprehensive Income for the year attributable to:
Owners of the parent	-2010.94	-
Non controlling Interest	-236.56	-
Earnings per Share:
Basic	-17.34	-63.85
Diluted	-16.75	-59.99

 Incred Capital Financial Services Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Cash Flow from Operating Activities
Profit/(Loss) Before tax	-1,280.25	-6,844.58
Adjustments to reconcile profit before tax to net cash flows from Operating Activities
Depreciation and amortization	1,143.98	1,008.15
Profit on sale of investments	-18,921.70	-5,251.60
Interest Income on loans	-1,967.18	-1,021.32
Share based payment to employees	2,381.32	3,612.76
Rent expense on deferred lease rentals	18.01	6.50
Allowance for credit loss	662.01	-67.22
Loss on sale of fixed assets	0.02	2.24
Interest on unwinding of financial liabilities	95.12	93.61
Interest on unwinding of financial assets	-18.61	-11.75
Operating profit/Loss before Working capital changes	-17,887.28	-8,473.21
Trade receivables	494.84	2,229.66
Other Financial assets	4,483.39	-6,330.46
Other non-financial assets	-645.88	1,473.21
Trade payables	1,471.50	-1,906.74
Deposits	-	31.75
Other financial liabilities	5,130.48	-530.87
Other non-financial liabilities	239.13	-383.43
Provisions	157.78	134.31
Cash generated from/used in operations	-6,556.04	-13,755.78
Direct taxes (paid) net of refunds	1,758.74	-662.11
Net cash flow from (Used in) Operating Activities	-4,797.30	-14,417.89
Cash Flow from Investing Activities
Purchase of property, plant and equipment	-480.23	-533.68
Impact of right of use assets	-571.79	-61.12
Purchase of Intangible assets	-5.75	-10.34
Capital work in progress	-10.18	-6.34
Proceeds from sale of fixed assets	6.65	26.28
Purchase of Associate	-1,311.06	-1,149.72
Purchase of Investments	-1,371,767.71	-938,136.05
Proceeds from sale of investments	1,383,426.20	923,679.75
Net proceeds from loans	-42,919.07	20,286.45
Interest Income on loans	1,967.18	1,021.32
Investment in fixed deposits with maturity of more than 3 months & other bank balances	-7,505.36	-
Net cash flow from (Used in) Investing Activities	-39,171.12	5,116.55
Cash Flow from Financing Activities
Borrowings	65,899.87	-6,932.51
Share capital	-	161.63
Securities premium	-270.00	13,704.65
Payment of lease liabilities	-455.66	-331.63
Net cash flow from (Used in) Financing Activities	65,174.21	6,602.14
Net Increase/Decrease in cash and cash equivalents	21,205.79	-2,699.20
Cash and Cash Equivalents at the beginning of the year	1,862.22	4,561.42
Cash and Cash Equivalents at the end of the year	23,068.01	1,862.22
Net Increase/Decrease in cash and cash equivalents during the year	21,205.79	-2,699.20

Here is a summary of the Cash Flow Statement for the years 2024 and 2023:

In the operating activities section, the company experienced a loss before tax of Rs. -1,280.25 lakhs in FY 2023-24, which is an improvement from the much larger loss of Rs. -6,844.58 lakhs reported in FY 2022-23. However, when adjustments were made to reconcile the loss before tax to net cash flows, the company saw considerable outflows. Depreciation and amortization, which are non-cash expenses, amounted to Rs. 1,143.98 lakhs, a slight increase from Rs. 1,008.15 lakhs in the previous year. There was also a significant profit on the sale of investments, resulting in a cash outflow of Rs. -18,921.70 lakhs, much higher than the Rs. -5,251.60 lakhs in FY 2022-23. Additionally, interest income on loans contributed to a cash outflow of Rs. -1,967.18 lakhs, up from Rs. -1,021.32 lakhs in the prior year. Other adjustments included share-based payments to employees of Rs. 2,381.32 lakhs (down from Rs. 3,612.76 lakhs last year) and an increase in the allowance for credit loss of Rs. 662.01 lakhs (compared to a decrease of Rs. -67.22 lakhs in FY 2022-23). Overall, these adjustments led to a negative cash flow from operating activities of Rs. -4,797.30 lakhs in FY 2023-24, though this was an improvement from the Rs. -14,417.89 lakhs outflow in the previous year.

The investing activities section saw large outflows as well. The company spent Rs. -1,371,767.71 lakhs on the purchase of investments, which was a significant increase from Rs. -938,136.05 lakhs in FY 2022-23. However, this outflow was partially offset by the proceeds from the sale of investments, which amounted to Rs. 1,383,426.20 lakhs in FY 2023-24, a notable increase from Rs. 923,679.75 lakhs in the prior year. Other cash flows in this section included payments for the purchase of property, plant, and equipment (Rs. -480.23 lakhs), the impact of right-of-use assets (Rs. -571.79 lakhs), and purchases of associates (Rs. -1,311.06 lakhs). The company also experienced net proceeds from loans amounting to Rs. -42,919.07 lakhs, as well as interest income on loans of Rs. 1,967.18 lakhs. Additionally, the company made an investment of Rs. -7,505.36 lakhs in fixed deposits and other bank balances with maturities of more than 3 months. As a result, the net cash flow from investing activities was an outflow of Rs. -39,171.12 lakhs, a sharp decline compared to the net inflow of Rs. 5,116.55 lakhs in FY 2022-23.

In financing activities, the company raised significant cash through borrowings, which totaled Rs. 65,899.87 lakhs, a large increase compared to the Rs. -6,932.51 lakhs outflow in the previous year. There were also changes in securities premium, with a decrease of Rs. -270.00 lakhs, compared to an increase of Rs. 13,704.65 lakhs in the prior year. The company issued no new share capital in FY 2023-24, unlike the Rs. 161.63 lakhs raised in the previous year. Furthermore, the company made payments of Rs. -455.66 lakhs towards lease liabilities. These activities resulted in a net cash inflow of Rs. 65,174.21 lakhs from financing activities, a substantial increase from the Rs. 6,602.14 lakhs inflow in FY 2022-23.

As a result of these various cash flows, the company saw a net increase in cash and cash equivalents of Rs. 21,205.79 lakhs in FY 2023-24, compared to a decrease of Rs. -2,699.20 lakhs in FY 2022-23. Cash and cash equivalents at the end of the year stood at Rs. 23,068.01 lakhs, a significant improvement from Rs. 1,862.22 lakhs at the beginning of the year. This increase reflects the positive impact of financing activities and a more efficient management of cash flows despite challenges in operating and investing activities.

 Financial Ratios of Incred Capital Financial Services

Particulars	2024	2023
Current Ratio	2.18	9.53
Debt/Equity ratio	1.57	0.28
Debt Service coverage ratio	-0.23	-0.65
Return on equity ratio	-0.04	-0.16
Trade Receivables turnover ratio	13.59	7.39
Trade Payable Turnover Ratio	4.39	3.72
Net Capital tunrover ratio	0.6	0.44
Net profit ratio	-1.07	-0.48
Return on capital employed	0.05	-0.18
Return on Investment	1.14	0.52

Here is a summary of the financial and operational metrics for Incred Capital Financial Services for the year 2024 and 2023:

Current Ratio

The current ratio for 2024 is 2.18, which is a significant decrease from 9.53 in 2023. The current ratio measures the company’s ability to cover its short-term liabilities with its short-term assets.

Debt/Equity Ratio

The debt/equity ratio has risen significantly from 0.28 in 2023 to 1.57 in 2024. This ratio reflects the company 's financial leverage by comparing its total debt to its shareholders ' equity.

Debt Service Coverage Ratio (DSCR)

The debt service coverage ratio (DSCR) is -0.23 for 2024, which is an improvement from -0.65 in 2023 but still negative. The DSCR measures the company’s ability to meet its debt obligations (interest and principal payments) from its operating cash flow. Return on Equity (ROE)

The return on equity ratio for 2024 is -0.04, up from -0.16 in 2023. ROE measures the profitability of the company relative to the shareholders ' equity. A negative ROE in both years indicates that the company is not generating a profit for its shareholders.

Trade Receivables Turnover Ratio

The trade receivables turnover ratio has improved from 7.39 in 2023 to 13.59 in 2024. This ratio measures how efficiently the company is collecting its receivables.

Trade Payables Turnover Ratio

The trade payables turnover ratio has increased from 3.72 in 2023 to 4.39 in 2024. This ratio shows how quickly the company pays off its suppliers. A higher ratio indicates that the company is paying its creditors more quickly.

Net Capital Turnover Ratio

The net capital turnover ratio has increased from 0.44 in 2023 to 0.60 in 2024. This ratio measures the company’s ability to generate sales from its net capital (equity and long-term debt).

Net Profit Ratio

The net profit ratio has worsened, moving from -0.48 in 2023 to -1.07 in 2024. This ratio indicates how much of the company’s revenue is converted into profit. A negative net profit ratio means the company is incurring losses.

Return on Capital Employed (ROCE)

The return on capital employed (ROCE) has improved from -0.18 in 2023 to 0.05 in 2024. This ratio measures the company 's ability to generate profits from its capital employed (equity and debt).

Return on Investment (ROI)

The return on investment (ROI) ratio has improved from 0.52 in 2023 to 1.14 in 2024. This ratio measures the return on the company’s investments, reflecting how effectively it is generating returns from its invested capital.