Indo Farm Equipment Limited has informed the Exchange about Credit Rating
INDOFARM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Indo Farm Equipment Limited's credit ratings have been reaffirmed by Infomerics Valuation and Rating Limited. The long-term bank facilities rating remains at IVR A-/Stable with the sanctioned amount reduced from Rs. 137.47 crore to Rs. 85.64 crore, while the short-term facilities rating stays at IVR A2+ with limits enhanced from Rs. 15.20 crore to Rs. 18.70 crore. FY2025 results showed strong improvement with profit after tax rising to Rs. 22.61 crore from Rs. 13.54 crore, total debt falling sharply to Rs. 95.34 crore from Rs. 167.29 crore, and overall gearing improving to 0.22x from 0.61x. The rating agency noted comfortable financial risk profile but flagged declining operating margins (12.84% vs 13.56%), an elongated working capital cycle of 260 days, exposure to its NBFC subsidiary Barota Finance (Rs. 165 crore corporate guarantee), and intense competition from larger players like Mahindra & Mahindra.
Neutral-to-mildly positive for shareholders — the reaffirmed ratings with a stable outlook signal sustained creditworthiness, while the sharp debt reduction and improved profitability metrics demonstrate strengthening fundamentals, though margin pressure and group company exposure remain watchpoints.