Infopark wins CRISIL’s A/Stable for second consecutive year

Kochi / May 21, 2024

Kochi, May 21: Infopark earned A/Stable by CRISIL Ratings, winning the recognition for the second consecutive year from the country’s leading analytics agency.

As CRISIL marks long-term banking facilities a critical criterion in its ratings, the agency points out “healthy liquidity driven by fund infusion from the Government of Kerala” as a major reason for the state-run Infopark’s latest achievement.

“Infopark has a healthy financial risk profile marked by low gearing and comfortable debt protection metrics,” CRISIL said. “Driven by modest debt in capital structure, gearing has remained less than 0.1 time. Limited debt has also resulted in low financial charges, which has led to healthy interest coverage ratio. The financial risk profile should continue to be moderate over the medium term.”

Noting that Infopark’s liquidity is “strong”, the report said annual cash inflows of more than Rs 30 crore are expected to be reported over the medium term. Thus, “CRISIL Ratings believes Infopark will maintain its healthy financial risk profile over the medium term driven by its healthy capital structure.”

As for sensitivity, the upward factors are two: growth in lease rental income by over 20 per cent on a sustained basis amid occupancy of more than 85 per cent; and, maintenance of healthy capital structure and liquidity.

Infopark CEO Susanth Kurunthil said the A/Stable rating reveals a consistency in the growth profile of the IT hub which is completing two decades. “Of late, increasing local availability of skilled professionals has been encouraging companies to set up offices in the IT parks of Kerala,” he added.

The 1987-founded CRISIL, headquartered in Mumbai, serves lenders, investors, issuers, market intermediaries and regulators by covering manufacturing companies, banks, NBFCs, PSUs, financial institutions, states, urban local bodies and mutual funds.

ENDS