Hinduja Leyland Finance receives 'AA+/Stable' rating boost from CRISIL

The company said that the upgraded rating reinforces its long-term financial stability and prudent governance practices

Global analytics company CRISIL has upgraded Hinduja Leyland Finance’s (HLF) rating to ‘AA+/Stable’ from ‘AA/ Stable', reflecting the company's strong financial performance, robust asset quality, and solid liquidity position.

Additionally, CRISIL reaffirmed the A1+ rating for the company’s Commercial Paper. The improved rating demonstrates confidence in Hinduja Leyland Finance's diversified resource profile, supported by well-balanced borrowings from both banks and capital markets, the company said.

It said that the upgraded rating reinforces the company's long-term financial stability and prudent governance practices.

Despite external challenges such as rising benchmark rates, the company has managed to maintain a competitive cost of borrowing while continuing to perform steadily.

“The CRISIL rating upgrade is a significant milestone for us at Hinduja Leyland Finance. This rating acknowledges our consistent financial performance and reflects our commitment to creating value for all stakeholders. The upgrade will further strengthen and help in diversifying our liability franchise, optimise borrowing costs, and accelerate our growth,” Sachin Pillai, managing director and chief executive officer of Hinduja Leyland Finance Limited, said.

“Our growth strategy focuses on expanding our portfolio in affordable housing, mortgages, and across all vehicle finance segments, while also exploring new opportunities in leasing, MSME financing, and extending finance in the alternate energy space. With our digital transformation initiatives, we aim to deliver enhanced value and seamless operations to our customers, improving their overall experience with us. The company is also poised to get listed shortly, and we believe this rating upgrade will have a significant impact on investors' outlook in both the equity and debt capital markets,” he said. 

As of June, 2024, HLF manages assets worth Rs. 51,593 crore, compared to Rs. 39,232 crore during the same period last year. The company has a presence in 1,750 locations across the country. While HLF grew cautiously during the COVID-19 years, it has since experienced a substantial bounce-back, achieving 28 per cent CAGR growth in assets under management (AUM), 57 per cent CAGR growth in disbursements, which resulted in 36 per cent CAGR growth in its bottom line.