U GRO CAPITAL ANNOUNCES FINANCIAL RESULTS FOR THE QUARTER AND HALF YEAR ENDED 30th SEPTEMBER 2023

 Reports AUM of INR 7,592 Cr, up 74% and PAT of INR 54.1 Cr up 329% (YoY)   

Advances on its Journey of Creating the Largest Small Business Financing Institution Driven by Data and Technology 

Key Highlights  

• Disbursement of INR 4,543 in H1’24, up 51% and INR 2,506 Cr in Q2’24, up 23% QoQ.  
• AUM of INR 7,592 Cr, up 74% YoY and 12% QoQ.  
• Net Total Income for H1’24 stood at INR 273.9, up 76% YoY and for Q2’24 INR 148.2 Cr, up 18% QoQ. 
• GNPA/NNPA at 1.9%/1.1% on total AUM. 
• Lending as a Service (LaaS) – a reality: achieved off-book AUM of 45%. 
• 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. 

Brief Financial Snapshot  Particulars  Q2’FY24  Q1’FY24  Growth (Q-o-Q)  H1’FY24  H1’FY23  Growth  AUM   7,592    6,777   12%   7,592    4,375   74%  Loans originated / Disbursement   2,506    2,036   23%   4,543    3,012   51%  Total Income   253.6    218.3   16%   472.0    277.0   70%  Interest Expense   105.4    92.7   14%   198.1    121.3   63%  Net Total Income   148.2    125.6   18%   273.9    155.7   76%  Operating Expenses   82.9    69.1   20%   152.0    105.1   45%  Credit cost   24.6    20.9   17%   45.5    22.6   101%  PBT   40.8    35.6   14%   76.4    27.9   174%  Tax   11.9    10.4   14%   22.3    15.3   46%  PAT   28.9    25.2   14%   54.1    12.6   329%

Mumbai, October 26, 2023: UGRO Capital, a DataTech NBFC and India’s largest Co-lender in the MSME segment, today announced its robust financial performance for the Second Quarter and Half Year ended 30th September 2023. The Company continued its growth momentum in the second quarter of FY24 with AUM of INR 7,592 Cr (as on Sep’23), up 74% compared to Sep’22. This surge can be attributed to its strategic investments in distribution channels, expansive lender base, and a data-centric underwriting model, which together ensure consistent monthly disbursals of over INR 500 Cr. 

Financially, UGRO Capital highlighted a Total Income of INR 472.0 Cr for H1’24, up 70% YoY, while the figure stood at INR 253.6 Cr for Q2’24, up 63% YoY and 16% QoQ. Furthermore, the PAT for H1’24 scaled up to INR 54.1 Cr, up 329% YoY and was INR 28.9 Cr for Q2’24, indicating an increase of 448% YoY and 14% QoQ. The robust quarterly performance, alongside the optimal GNPA/NNPA metrics of 1.9%/1.1% on the total AUM, reiterates the sterling quality of UGRO's portfolio, underscoring a well-structured risk management approach. 

UGRO Capital's distinctive 'Lending as a Service' approach combined with the strategic use of co-lending partnerships with off-book AUM accounting for 45% has significantly propelled this growth trajectory. Further solidifying its reputation in the sector, UGRO Capital's proprietary underwriting model, GRO Score 3.0, has demonstrated its efficacy. This strategic model, along with collaborations with over 10 co-lending partners, 60 lenders, 45 fintechs, and 500 GRO partners, facilitates data-driven, tailored financial solutions for more than 59,000 MSMEs across India. 

Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of UGRO Capital said, “At UGRO Capital, we are committed to boosting India's economic growth through the empowerment of small businesses. We envision building a large institution dedicated to small business financing, and this vision is closer to reality now more than ever. We have set ambitious goals for FY24, and through innovative financial strategies, dynamic collaborations, and our unwavering commitment to foster sustainable entrepreneurship, we're strategically poised to meet these targets. As UGRO Capital strides towards enduring growth, it presents an attractive proposition for investors eyeing long-term value and robust returns.” 

Key performance highlights for Q2’ and H1’FY24 

a)      Growth, Expansion and Portfolio quality  

• AUM of INR 7,592 Cr as on Sep’23 (up 74% YoY and 12% QoQ)  
• INR 2,506 Cr of Gross Loans originated in Q2’FY24 (up 52% YoY and 23% QoQ) and INR 4,543 Cr of Gross Loans originated in H1’FY24 (up 51% compared to H1’FY23). 
• Total Income stood at INR 253.6 Cr for Q2’FY24 (up 63% YoY and 16% QoQ) and INR 472.0 Cr in H1’FY24 (up 70% compared to H1’FY23) 
• Net Total Income stood at INR 148.2 Cr for Q2’FY24 (up 71% YoY and 18% QoQ) and INR 273.9 Cr in H1’FY24 (up 76% compared to H1’FY23) 
• PBT increased to INR 40.8 Cr in Q2’FY24 (up 132% YoY and 14% QoQ) and INR 76.4 Cr in H1’FY24 (up 174% compared to H1’FY23) 
• PAT increased to INR 28.9 Cr in Q2’FY24 (up 448% YoY and 14% QoQ) and INR 54.1 Cr in H1’FY24 (up 329% compared to H1’FY23) 
• GNPA / NNPA as on Sep’23 stood at 1.9% /1.1% (as a % of Total AUM) 
• Over 59,000 customers as on Sep’23  
• 104 branches (as on Sep’23)  
  
  
   

b)      Liability and Liquidity Position  

• Total lender count stood at 60 as on Sep’23  
• Total Debt stood at INR 3,798 Cr as on Sep’23, and overall debt to equity ratio was 2.8x 
• Healthy capital position with CRAR of 24.84% (as on Sep’23)