Ugro Capital declares Q4FY22 result: Loan Portfolio: The Company’s AUM as of March 31, 2022, stood at INR 2,969 Cr compared to INR 1,317 Cr as of March 31,2021, a 125% increase on a YoY basis. Gross Disbursements for FY22 stood at INR 3,138 Cr, a 173% YoY Growth compared to INR 1,147 Cr in FY21. Disbursements for Q4FY22 stood at INR 963 Cr, a growth of 114% over Q4FY21. Our business has shown strong resilience by bouncing back quickly from the impact of Covid wave 3 and we exit FY22 at a monthly gross disbursement run rate of ~ INR 350 Cr Portfolio GNPA and NNPA stood at 2.3% and 1.7% respectively as of March 31, 2022. Our total provision coverage improved from 1.4% (% of On Book AUM) as on Dec-21 to 1.7% as on Mar-22. Our GNPA% decreased from 2.7% as on Mar-21 to 2.3% as on Mar-22 Liability and Liquidity Position The Company strengthened its lender base by adding 26 new lenders during FY22. As on March 31, 2022, total lender count stood at 55. The Company’s total Debt stood at INR 1,802 Cr as on March 31,2022 and the overall debt to equity ratio still remains low at 1.86x, indicating a long runway for growth. We have efficiently implemented and executed the Co-lending Model during FY22 by partnering with large Public Sector Banks. We are transitioning towards “Lending as a service” business model and, as a result of the same, our Off Book AUM has increased to ~16% as on Mar-22. During FY22 the company raised liabilities through innovative debt instruments which were earlier unheard of in the lending market The company maintains a CRAR of 34%, indicating a comfortable capital position. Branch and Customer Network Our customer count is ~20,000 as on Mar-22. During FY22, the Company expanded it network by adding 57 branches, our total branch count as on Mar-22 stood at 91. Increase in branch count was majorly driven by scaling up of our Micro vertical (71 branches as on Mar-22 vis-avis 25 as on Mar-21) People Power In line with the growth strategy, the Company continued to hire additional workforce. We hired an additional 750 employees during the year and saw our total employee strength rise to more than 1,100 employees. Financial Performance The net worth of the Company stands at INR 966 Cr as on March 31, 2022 The company’s total income (NII + Other Revenue) increased to INR 176.0 Cr in FY22, as compared to INR 108.8 Cr in FY21, an increase of 61.8% on a YoY basis The total provisioning as on Mar-22 stood at INR 40.6 Cr vs. the regulatory requirement of INR 27.2 Cr. The Company declared a PBT of INR 20.2 Cr as compared to INR 12.1 Cr in FY21. PBT to PAT Bridge of the Company is as follows. Commenting on the appointment, Mr. Satyananda Mishra, Non-Executive Chairman of U GRO Capital stated “I am honored to be appointed as Non-Executive Chairman of the Board of UGRO Capital Ltd which has redefined excellence as a Fintech NBFC. In a short period of just about four years, UGRO has etched a name for itself in the financial world. I look forward to a brighter future for this Company.” Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “The company has built formidable distribution strength by scaling up its asset channels in FY22 to support future growth plans. We have been pioneers of the Co-lending model in the industry and have set course for transitioning our business model to lending as a service. Data analytics and technology is at the forefront of our business model. We have been able to implement one of the best underwriting models and build a robust tech architecture to support the end-to-end digital customer journey through API. Going forward, our focus shall remain on growing our book profitably, by increasing the proportion of our off-book AUM.” Result PDF
Conference Call with Ugro Capital Management and Analysts on Q3FY22 Performance and Outlook. Listen to the full earnings transcript.
Finance (including NBFCs) firm Ugro Capital declares Q3FY22 result: The company’s total income (NII + Other Revenue) increased to INR 47.0 Cr in Q3FY22, as compared to INR 27.3 Cr in Q3FY21 an increase of 72.7% on a YoY basis The Net Interest Income (NII) for Q3FY22 stood at INR 39.5Cr compared to INR 23.3Cr in Q3FY21. 69.5% increase on YoY basis. Net interest margins for Q3’22 stood at 7.6% The total provisioning as of Dec-21 stood at INR 33.2Cr vs the regulatory requirement of INR 26.9Cr. The Company declared a PBT of INR 5.1Cr, as compared to INR 2.9Cr in Q3 FY21, Company has done additional provision of Rs. 2.7 Crores as management overlay provision to provide for future contingencies in view of third wave of Covid in early January of this year. The net worth of the Company stands at INR 959 Cr as on December 31, 2021 Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “On the back of our past investments in building infrastructure and now with our entire team being in place (Strong leadership team supported by execution oriented second layer of management) all our asset engines have been firing well which is evident from our Q3’FY22 growth numbers. UGRO’s people and business infrastructure is well prepared to support the next phase of growth which will be a key milestone for us to achieve our Vision 2025. Our Growth objectives are well supported by our liability franchise which now includes Co-lending partnerships with one of the Largest Public Sector Banks in India. Our GNPA numbers are a testimony of our robust credit underwriting model and our unique sect approach to MSME Credit (bringing homogeneity to a heterogenous MSME sector).” Result PDF
Conference Call with Ugro Capital Management and Analysts on Q2FY22 Performance and Outlook. Listen to the full earnings transcript.
Financial Highlights: Disbursements for the quarter stood at INR 790Cr registering a Q-o-Q Growth of 139%. Also, the company clocked its highest ever disbursements in Sep’21 (INR 288Cr) AUM stood at INR 1,933 Cr as of Sep-21 growth 98% YoY and 41% Q-o-Q. Total cumulative disbursements crossed INR 3,636Cr since inception Customer base crossed 10,000 mark. Company continued to expand its physical footprint. Branch count increased to 55 as compared to 34 in last quarter. Company has added 23 new lenders in the last twelve months taking the total active lender base to 37 as of Sep-21. Total Income at INR 62.7Cr increased 80% YoY and 22% Q-o-Q. The Company continued to hire additional manpower on the business side in line with its growth plans. Total employee base at the end of the quarter stood at 580 vs 194 employees a year ago. The total employee base as of today (October end) has crossed the 700 mark. performance highlights: Loan Portfolio: The Company’s AUM as of the end of September 30, 2021,stood at INR 1,933Cr compared to INR 978 Cr as of Sep-20 registering a 98% increase on a Y-o-Y basis With contribution from all the distribution channels, the company clocked its highest ever disbursements in Sep’21 (INR 288Cr) The loan book is 78% secured with a well-diversified portfolio across sectors and geographies (3,250+ pin codes) Portfolio GNPA stands at 1.9% as of September 30, 2021 Liability and Liquidity Position: The Company further widened its active lender base to 37 lenders testifying the strength of U GRO’s business model. The Company’s overall liability book rose to INR 1,096Cr in Q2FY22, with overall debt equity ratio still at 1.14x indicating a long runway for growth. Co-lending partnerships – We entered into a co-lending partnership with IDBI bank during the quarter thus expanding our co-lending relationships with multiple banks for various product categories Our credit rating outlook during the quarter improved from Stable to Positive The company maintains a CRAR of 47%, indicating a comfortable capital position. Financial Performance: The company’s total income increased to INR 62.7Cr in Q2FY22, as compared to INR 34.8 Cr in Q2FY21 an increase of 80% on a Y-o-Y basis The Net Interest Income (NII) for Q2FY22 stood at INR 31.7Cr compared to INR 20.7Cr in Q2FY21. 53% increase on Y-o-Y basis. Net interest margins improved 40bp QoQ to 7.7% largely due to reduction in the borrowing cost. The total provisioning as of Sep-21 stood at INR 24.2Cr vs the regulatory requirement of INR 22.1Cr. The Company declared a PBT of INR 4.7Cr, as compared to INR 2.7Cr in Q2 FY21 The net worth of the Company stands at INR 958 Cr as on September 30, 2021 Commenting on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “We started our operational journey in January 2019 and completed our first full year of operational run from April 2019 – March 2020 which was one of the most turbulent time for NBFC industry post IL&FS; crisis. As we were coming out of the after effect of the same, the business was completely halted from April 2020 – September 2020 and again in April 2021 to June 2021 due to the impact of covid pandemic. Our Q2 FY22 results are testimony to our long-term commitment to solve the credit problem of MSMEs through our sectoral approach, digital platform combined with both multi-channel asset engine and collaborative partnership on liability side. Within our defined sector we have now built capabilities to serve small business customers with borrowing need of Rs. 1 Lac to Rs. 3 Crores through our four-pronged asset channel and we have been successful in building India’s first fully data driven underwriting platform which has embraced the Data Tripod of GST, Banking & Bureau. We continue to expand our distribution reach through our GRO Micro branches, and their relative contribution would start getting reflected in next few quarters, our Prime Branches have reached maturity and we are adding people to improve the throughput, our Eco System Channel, both SCF & Machinery is benefiting from the digital and physical footprint we have created. In last two quarters our GRO – Xstream platform have on boarded more than fifteen FinTech / NBFC partners on asset side and Banks on liability side. We will carry on the momentum and traction which is now coming because the infrastructure we have built over last one year and we have a clear path of achieving our mission of serving 1mn customers and take 1% market share of outstanding MSME Credit of India. Result PDF