Incred Holdings Ltd Annual Reports, Balance Sheet and Financials

Incred Holdings Limited Consolidated Balance Sheet (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Financial Assets
Cash & Cash Equivalents	8,496.96	34,472.39
Bank Balances other than above	8,323.96	4,795.43
Derivative financial instruments	878.92	1,388.54
Trade receivables	-	2.45
Loans	725,877.68	540,525.05
Investments	61,267.07	7,034.28
Other financial assets	10,712.97	7,953.28
Non-Financial assets
Current tax assets (net)	4,658.18	5,039.07
Deferred tax assets (net)	39,497.09	47,707.12
Property, Plant and equipment	5,031.34	4,359.35
Capital work in progress	336.65	161.79
Goodwill	6,645.58	6,778.74
Other tangible assets	393.40	666.43
Other non-financial assets	4,642.01	6,996.43
Total Assets	876,761.81	667,880.35
Financial Liabilities
Derivative financial liabilities	2,265.96	727.43
Trade Payables	271.89	172.45
Debt securities	96,989.55	115,190.08
Borrowings (Other than debt securities)	404,725.93	271,246.87
Other fiancial liabilities	26,571.49	20,935.99
Non-Financial Liabilities
Provisions	5,654.68	2,766.29
Other non-financial liabilities	1,605.01	2,061.37
Equity
Equity Share capital	64,181.76	59,523.54
Other Equity	274,495.54	195,256.32
Total Equity & Liabilities	876,761.81	667,880.34

 

Incred Holdings Limited Consolidated Profit & Loss Statement (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Revenue from Operations
Interest Income	119,359.23	82,296.77
Dividend Income	50.10	25.18
Net gain on derecognition of financial instruments under amortised cost category	3,218.45	1,560.88
Fees and commission income	3,308.50	2,180.55
Net (loss)/gain on fair value changes	1,333.79	501.76
Other Income	2,343.00	1,505.48
Total Income	129,613.07	88,070.62
Expenses
Finance Costs	45,325.56	35,601.91
Net loss on derecognition of financial instruments under amortised cost category	3,765.18	25.00
Impairment on financial instruments	-1,870.86	-2,423.77
Employee benefit expenses	26,458.46	19,227.77
Depreciation & Amortization Expenses	1,869.92	1,326.78
Other Expenses	12,099.99	9,184.44
Total Expenses	87,648.25	62,942.13
Profit before share of loss of associates	41,964.82	25,128.49
Share of loss of associates	-	10.14
Profit before exceptional items and tax	41,964.82	25,118.35
Exceptional item	2,010.53	6,021.94
Profit Before Tax	39,954.29	19,096.41
Current tax	755.40	467.86
Deferred Tax	8,294.98	7,722.13
Profit for the year	30,903.91	10,906.42
Other Comprehensive Income
Items that will not be reclassified to profit or loss:
Remeasurement gain/(loss) of the defined benefit plans	-127.69	-62.34
Income tax relating to items that will not be reclassified to profit or loss	32.21	15.92
Items that will be reclassified to profit or loss:
Debt instruments through other comprehensive income	24.84	-73.59
The effective portion of gains and loss on hedging instruments in a cash flow hedge	-234.40	129.99
Income tax relating to items that will be reclassified to profit or loss	52.75	-13.87
Other Comprehensive Income	-252.29	-3.89
Total Comprehensive Income for the year	30,651.62	10,902.53
Profit is attributable to:
Owners of the group	31,026.91	10,905.81
Non controlling Interests	-123.00	0.61
Other Comprehensive Income is attributable to:
Owners of the group	-252.05	-3.89
Non controlling Interests	-0.24	-
Total Comprehensive Income is attributable to:
Owners of the group	30,774.85	10,901.92
Non controlling Interests	-123.23	0.61
Earnings per Equity share
Basic	5.07	1.85
Diluted	4.87	1.81

 Incred Holdings Limited Consolidated Cash Flow Statement (Rs in Lakhs)

Particulars	3/31/2024	3/31/2023
Cash Flow from Operating Activities
Profit/(Loss) before tax	39,954.29	19,096.41
Adjustments to reconcile net profit to net cash generated from/(used in) operating activities
Depreciation,Amortization and Impairment	1,869.92	1,326.78
Loss on sale of property, plant and equipment	-	10.40
Net (gain) on fair value changes	-1,334.48	-499.12
Impairment of goodwill	133.16	16,585.12
Net gain on derecognition of financial instruments	546.73	-1,535.88
Interest Income	-119,359.23	-82,296.77
Finance Costs	44,950.95	35,399.59
Impairment on financial instruments	-2,382.57	-1,155.09
Retirement benefit expenses	174.18	139.30
Share based payment to employees	2,432.70	3,765.87
Share in loss of associate	-	10.14
Operating Profit before Working Capital Changes	-33,014.35	-9,153.25
Working capital adjustments:
(Increase)/Decrease in other trade receivables	2.45	105.89
(Increase) in loans	-182,970.06	-113,268.76
(Increase) in other financial assets	-3,306.42	-4,296.83
(Increase)/Decrease in other non financial assets	2,354.42	-1,952.74
Increase in other financial liabilities	5,937.18	6,528.20
Increase in trade payables	99.44	-
Increase in Provisions	2,586.52	549.92
(Decrease)/Increase in other non financial liabilities	-456.36	401.16
Cash (used in)/Generated from Operations	-208,767.18	-121,086.41
Interest received on loans	116,648.30	80,643.89
Interest paid on borrowings and debt	-44,709.39	-34,973.42
Income taxes paid	-427.25	2,811.54
Net cash generated from operating activities	-137,255.52	-72,604.40
Cash flows from investing activities
(Purchase)/Sale of Property, plant and equipment	-1,862.93	-1,940.49
(Purchase)/Sale of Intangible assets	-111.93	-466.95
(Addition)/Deletion of capital work in progress	-174.86	132.16
Investment in associate	-	4,276.47
Proceeds from business combination	-	39,431.81
Purchase of investments	-1,069,381.37	-46,211.16
Proceeds from sale of investments	1,021,085.69	45,939.88
Investment in term deposits	-190,240.61	-137,589.04
Proceeds from maturity of term deposits earmarked with banks	186,712.08	135,784.97
Net cash generated from Investing activities	-53,973.94	39,357.65
Cash flows from financing activities
Issue of equity shares	50,812.77	1,349.35
Reversal of rent expenses	-837.26	-604.40
Proceeds of borrowings	257,899.24	174,965.00
Proceeds of debt securities	79,946.24	69,799.19
Repayment of borrowings	-129,934.78	-120,958.31
Redemption of debt securities	-98,146.77	-61,132.88
Net cash generated from Financing activities	159,739.44	63,417.95
Net increase/(decrease) in cash and cash equivalents	-31,490.02	30,171.20
Cash and cash equivalents at the beginning of the year	32,960.13	2,788.93
Cash and cash equivalents at the end of the year	1,470.11	32,960.13

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

Cash Flow from Operating Activities:

Operating activities primarily reflect the core business operations, such as generating profits and managing working capital.

Profit/(Loss) before tax increased from ₹19,096.41 Lakhs in 2023 to ₹39,954.29 Lakhs in 2024. This indicates a higher pre-tax profit for 2024, showing an improvement in operational efficiency or revenue generation.

Adjustments to reconcile net profit to net cash generated: Several non-cash adjustments were made to calculate the net cash from operating activities:

Depreciation, Amortization, and Impairment: This increased from ₹1,326.78 Lakhs in 2023 to ₹1,869.92 Lakhs in 2024, reflecting higher depreciation or amortization charges, which are added back to net income as they don’t represent cash outflows.

Loss on sale of property, plant, and equipment: A minor loss of ₹10.40 Lakhs was recognized in 2023, but there were no such losses in 2024.

Impairment of goodwill: A significant impairment charge of ₹16,585.12 Lakhs in 2023 decreased to ₹133.16 Lakhs in 2024, reducing the non-cash impact on the profit for 2024.

Net gain on fair value changes and Net gain on derecognition of financial instruments: These items reversed from negative values in both years, indicating changes in asset valuations and the derecognition of financial instruments that resulted in a positive impact on cash flows in 2024.

Working capital adjustments: These reflect changes in the company’s operational assets and liabilities. Significant changes include:

Increase in loans: There was a sharp increase in loans by ₹182,970.06 Lakhs in 2024 compared to ₹113,268.76 Lakhs in 2023, indicating the company borrowed more in 2024.

Increase in other financial assets: A reduction in cash due to an increase in financial assets of ₹3,306.42 Lakhs.

Increase in trade payables: A small increase of ₹99.44 Lakhs in 2024 shows the company used more credit from its suppliers.

Increase in provisions: A rise in provisions (₹2,586.52 Lakhs) indicates higher expected liabilities.

Cash (used in)/generated from operations: The company experienced a significant outflow from operations, with ₹208,767.18 Lakhs used in 2024 compared to ₹121,086.41 Lakhs in 2023, mainly due to the higher working capital requirements and interest expenses.

Interest paid was ₹44,709.39 Lakhs in 2024, which increased from ₹34,973.42 Lakhs in 2023, reflecting higher interest costs.

Net cash generated from operating activities: After adjustments for interest and taxes, the company had a net outflow of ₹137,255.52 Lakhs in 2024, which is much worse than the outflow of ₹72,604.40 Lakhs in 2023.

Cash Flow from Investing Activities:

Investing activities primarily involve the purchase and sale of physical and financial assets.

Purchase/Sale of property, plant, and equipment: The Company spent ₹1,862.93 Lakhs on acquiring new assets, which is slightly lower than the ₹1,940.49 Lakhs spent in 2023.

Purchase/Sale of investments: There was a significant outflow in 2024 of ₹1,069,381.37 Lakhs for purchasing investments, compared to ₹46,211.16 Lakhs in 2023. This represents a major increase in the company’s investment activities, possibly due to acquisitions or strategic investments.

Proceeds from the sale of investments: The company generated ₹1,021,085.69 Lakhs from selling investments in 2024, which is close to the amount spent on purchasing investments, leading to a relatively balanced cash flow from investments.

Investment in term deposits and Proceeds from maturity of term deposits: These two items reflect changes in cash holdings, with outflows of ₹190,240.61 Lakhs for new term deposits and inflows of ₹186,712.08 Lakhs from maturing deposits. These changes in short-term deposits had a relatively neutral effect on the net cash from investing activities.

Net cash generated from investing activities: The company had a net outflow of ₹53,973.94 Lakhs in 2024, a significant decrease from the inflow of ₹39,357.65 Lakhs in 2023, primarily due to the large investments made.

Cash Flow from Financing Activities:

Financing activities relate to how the company raises and repays capital, including borrowings, debt, and equity.

Equity issue: The company raised ₹50,812.77 Lakhs through the issuance of new equity shares in 2024, significantly more than the ₹1,349.35 Lakhs raised in 2023. This is a major source of cash inflow in 2024.

Proceeds of borrowings: There was a sharp increase in borrowings, with ₹257,899.24 Lakhs raised in 2024, compared to ₹174,965.00 Lakhs in 2023, contributing to the financing cash inflow.

Debt securities: The company raised ₹79,946.24 Lakhs through debt securities in 2024, up from ₹69,799.19 Lakhs in 2023.

Repayment of borrowings: The company repaid ₹129,934.78 Lakhs of borrowings in 2024, which is slightly more than the repayment of ₹120,958.31 Lakhs in 2023.

Redemption of debt securities: In 2024, ₹98,146.77 Lakhs were used to redeem debt securities, higher than the ₹61,132.88 Lakhs in 2023.

Net cash generated from financing activities: The company had a significant inflow of ₹159,739.44 Lakhs in 2024, which was much higher than the ₹63,417.95 Lakhs in 2023, due to the increased borrowing and equity issuance.

Net Change in Cash and Cash Equivalents:

The net change in cash and cash equivalents was a decrease of ₹31,490.02 Lakhs in 2024, compared to an increase of ₹30,171.20 Lakhs in 2023. Despite the inflows from financing activities, the large outflows in operating and investing activities led to the overall reduction in cash.

Cash and cash equivalents at the beginning of the year: ₹32,960.13 Lakhs in 2024 compared to ₹2,788.93 Lakhs in 2023.

Cash and cash equivalents at the end of the year: The company ended the year with ₹1,470.11 Lakhs in 2024, a significant decrease from ₹32,960.13 Lakhs in 2023.

 

Financial Ratios of Incred Holdings Limited

Particulars	2024	2023
Current Ratio	1.51	3.62
Debt-Equity Ratio	-	0.01
Return on Equity ratio	-0.18%	-0.42%
Net Profit ratio	-118.98%	-537.59%
Return on Capital Employed Ratio	-59.00%	0.32%
Return on Investment	13.20%	1.60%

 

Here is a summary of the financial and operational metrics for Incred Holdings Limited for the year 2024 and 2023:

Current Ratio:

A current ratio of 1.51 in 2024 suggests that for every 1 of liability, the company has 1.51 in assets to cover it, indicating a decent level of liquidity. However, the significant decline from 3.62 in 2023 to 1.51 in 2024 shows that the company 's liquidity position has worsened over the year, implying that it may now be facing tighter liquidity and may need to improve its working capital management.

Debt-Equity Ratio:

In 2023, the debt-equity ratio was extremely low at 0.01, which means that the company relied very little on debt for financing, using primarily equity to fund its operations.

Return on Equity (ROE):

ROE has improved slightly from -0.42% in 2023 to -0.18% in 2024, though both values remain negative, indicating that the company has experienced a loss in both years relative to its equity base.

Net Profit Ratio:

A net profit ratio of -118.98% in 2024 indicates that the company’s net losses were larger than its revenues, meaning that the company lost more money than it earned in sales. This is a significant improvement from -537.59% in 2023, where the company’s losses were even more extreme in relation to its revenues.

Return on Capital Employed (ROCE):

The ROCE of -59.00% in 2024 indicates that the company has generated a negative return on the capital employed, meaning that it is losing value relative to its capital base. This is a sharp decline from 0.32% in 2023, which was a very small positive return.

Return on Investment (ROI):

The ROI of 13.20% in 2024 is a strong improvement from 1.60% in 2023, indicating that the company has become more effective at generating returns on its investments.