Non-banking financial company Ugro Capital announced Q1FY24 results: New customers on-boarded in Q1FY24: 8,664 MSME customers, up 65% YoY. Disbursement of Rs 2,036 crore in Q1FY24, up 50% YoY. AUM of Rs 6,777 crore, up 85% YoY and 11% QoQ. Net total income stood at Rs 125.6 crore, up 82% YoY. GNPA/NNPA at 1.8%/1.0% on total AUM. Lending as a Service (LaaS) – a reality: achieved off-book AUM of 43%. UGRO Capital is steadily marching towards its target to gain a 1% market share with 1 million small businesses as our customers over the next three years. Commenting on the results, Shachindra Nath, Vice Chairman and Managing Director, UGRO Capital said, “UGRO Capital has set ambitious goals for FY24, and we are dedicated to gaining 1% market share with 1 million small businesses as our valued customers over the next three years. With our innovative financial solutions, strategic partnerships, and mission to drive sustainable entrepreneurship, we are well-positioned to achieve these objectives. We believe in the power of small businesses to drive India's economy, and we are dedicated to facilitating their success. As the company marches forward on its path of sustainable growth, it offers a compelling opportunity for investors seeking long-term value and returns.” Result PDF
Finance firm Ugro Capital announced Q4FY23 results: AUM of Rs 6,081 crore (up 105% YoY and 19% QoQ) Rs 7,200 crore of Gross Loans originated in FY23 (up 129% compared to FY22) and Rs 2,134 crore of Gross Loans originated in Q4FY23 (up 140% YoY and 23% QoQ). Total Income stood at Rs 217.2 crore for Q4FY23 (up 92% YoY and 15% QoQ) and Rs 683.8 crore for FY23 (up 119% compared to FY22) Net Total Income stood at Rs 126.8 crore for Q4FY23 (up 101% YoY and 17% QoQ) and Rs 390.5 crore for FY23 (up 123% compared FY22) PBT incroreeased to Rs 33.7 crore in Q4FY23 (up 319% YoY and 51% QoQ) and Rs 83.8 crore in FY23 (up 315% compared to FY22) GNPA / NNPA as on March 23 stood at 1.6% /0.9% (as a % of Total AUM) Over 46,000 customers as on March 23 98 branches (as on March 23) Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of UGRO Capital said, “UGRO Capital is India’s first data driven underwriting platform which uses the power of GST, Banking, and repayment behavior on Bureau for credit decisioning. Over the last four years, the company has served over 48,000 customers in 4,000 different pin codes, analyzed over 93,000 bank statements, 34,000 GST records, and processed over 63,000 GRO Score logins. Despite broader challenges to the lending industry, UGRO Capital has successfully built an AUM of INR 6,000+ Cr and with a monthly net disbursement of more than INR 500 Cr. Our increasing off book AUM of 40% demonstrates that our credit scoring model and underwriting framework are widely accepted across the banking industry. Our FY23 performance demonstrates our unwavering commitment to growth, the company’s core profitability, and we intend to gain a 1% market share with 1 million small businesses as our customers over the next three years. We have recently announced our second equity capital raise of INR 340 Cr from marquee institutional investors and this capital raise will further enhance UGRO’s strong capital position and strengthen the balance sheet.” Result PDF
Finance firm Ugro Capital announced Q3FY23 results: Q3FY23: AUM of Rs 5,095 crore, up 97% YoY and 16% QoQ Disbursement of Rs 1,874 crore, up 78% YoY and 13% QoQ Achieved off-book AUM of 35%, up from 29% in Sep 2022, reached the desired off-book AUM target for Q3FY23 Net total income stood at Rs 108.0 crore, up 131% YoY and 24% QoQ PBT at Rs 22.2 crore, up 338% YoY and 27% QoQ GNPA/NNPA at 1.7%/1.1% Commenting on the results, Shachindra Nath, Vice-Chairman and Managing Director of UGROCapital, said, “We scaled our business, reached the Rs 5,000 cr AUM-milestone, and met our FY23 off-book AUM guidance a quarter ahead of schedule, thanks to our unwavering focus on our core competencies, extensive use of data analytics in decision-making, and widespread acceptance in the banking and MSME industries. Our Q3FY23 results, with the highest-ever disbursement and improved profitability, demonstrate our unwavering commitment to growth. We continue to make progress towards the company’s core profitability on QoQ basis. We have already assisted over 38,000 MSMEs and disbursed over Rs 10,500 crore. Taking the pandemic into account, we reached this level in about 2.5 years, beginning in April of 2019. This is incomparable, especially when compared to our overall credit performance, which is industry-leading. Our underwriting model, GRO score 3.0, is being upgraded to derive power insights and better underwrite the MSME segment, and we will soon launch a credit line on UPI for small businesses.” Result PDF
Finance firm Ugro Capital announced Q2FY23 results: Q2FY23: AUM of Rs 4,375 crore (up 126% YoY and 20% QoQ) Rs 3,011 crore of gross loans originated in H1FY23 (up 168% compared to H1FY22) and Rs 1,653 crore of gross loans originated in Q2FY23 (up 110% YoY and 22% QoQ). Total income stood at Rs 158 crore for Q2FY23 (up 151 YoY and 27% QoQ) and Rs 281.2 crore for H1FY23 (up 146% compared to H1FY22) Net total income stood at Rs 87.5 crore for Q2FY23 (up 144% YoY and 23.8% QoQ) and Rs 158.2 crore for H1FY23 (up 144% compared to H1FY22) PBT increased to 17.6 crore in Q2FY23 (up 274% YoY and 69% QoQ) and 27.9 crore in H1FY23 (up 293% compared to H1FY22) GNPA / NNPA as on Sep’22 stood at 1.7% /1.2% (as a % of Total AUM) Over 32,000 customers as on September 2022 98 branches (as of Sep’22) Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital said, “UGRO Capital is revolutionizing MSME lending through its Data analytics prowess and robust technology architecture. We have been pioneers of Lending as a Service (LaaS) in India and have accelerated our expansion through co-lending and co-origination partnerships. Our increasing off-book AUM of 29% demonstrates that our credit scoring model and underwriting framework are widely accepted across the banking industry. Our Q2FY23 results with the highest ever disbursement demonstrate our unwavering commitment to growth. We continue to make progress towards the company’s core profitability on QoQ basis. We achieved new milestones and scaled out our MSME Loans thanks to our persistent focus on our business strengths and extensive integration of data analytics in the decision-making process. With the proof of concept for GRO Score 2.0 established, we will soon launch GRO Score 3.0.” Result PDF
Finance company Ugro Capital Announced Q1FY23: Loan and Income Growth, Portfolio quality: AUM of Rs 3,656 crore (+166% compared to June 2021 and +23% compared to March 2022) Rs 1,359 crore of Gross Loans originated in Q1FY23 (+311% compared to Q1FY22 and +41% compared to Q4FY22). Total Income stood at Rs 123.8 crore (+141.4% compared to Q1FY22 and +8.4% compared to Q4FY22). Net Total Income for Q1FY23 stood at Rs 70.7 crore (+144.6% compared to Q1FY22 and +9.6% as compared to Q4FY22) PBT increased to Rs 10.4 crore (+340.6% compared to Q1FY22 and +29.3% as compared to Q4FY22). GNPA / NNPA as on June 2022 stood at 1.7% /1.2% (As a % of Total AUM) Liability and Liquidity Position Total lender count increased to 63 as on June 2022, added 8 new lenders during Q1FY23 Total Debt stood at Rs 2,208 Cr as on June 2022, and overall debt to equity ratio was 2.26x Healthy capital position with CRAR of 28% (as on June 2022) Branch, Customer Network and Employee Strength 25,000+ customers as on June 2022 (+5,000 customers in Q1FY23) 96 branches (as on June 2022), addition of 5 new branches during the quarter 1,275+ Employees as on June 2022, Net employee addition of 165+ during Q1FY23 Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “U GRO is at the forefront of using Data Analytics and Technology to serve the underserved MSME segment. We have been pioneers of “Lending as a service” by harnessing the power of Co-lending / Co-origination models and steering the company towards transitioning into a lending platform through off - balance sheet AUM approach. Operational efficiencies have started to kick in with improving profitability with each passing quarter. The Company is on track to achieve AUM of INR 20,000 Cr by 2025 as we achieved our highest ever disbursement in Q1FY23.” Result PDF
Conference Call with Ugro Capital Management and Analysts on Q4FY22 Performance and Outlook. Listen to the full earnings transcript.