Ugro Capital total income in Q3 increases by 72.7% yoy to Rs47cr

9 Feb 2022 , 10:12 AM

Ugro Capital Limited total income (NII+Other Revenue) increased to Rs47cr in Q3FY22, as compared to Rs27.3cr in Q3FY21 an increase of 72.7% on a yoy basis. The Net Interest Income (NII) for Q3FY22 stood at Rs39.5cr compared to Rs23.3cr in Q3FY21, 69.5% increase yoy. Net interest margins for Q3FY22 stood at 7.6%.

The total provisioning as of Dec-21 stood at Rs33.2cr vs the regulatory requirement of Rs26.9cr. The Company declared a Profit Before Tax (PBT) of Rs5.1cr, as compared to Rs2.9cr in Q3FY21. The company has done an additional provision of Rs2.7cr as management overlay provision to provide for future contingencies in view of the third wave of Covid in early January of this year. The net worth of the company stands at Rs959cr as of December 31, 2021.

At around 10.15 AM, Ugro capital Limited was trading at Rs216.85 per share down Rs0.55 or 0.25% on the BSE.

Key performance highlights for Q3FY22
a) Loan Portfolio:

• Disbursements for the quarter stood at Rs1,053cr registering a qoq Growth of 33.1% and a staggering yoy Growth of 186.1%. Disbursements for nine months ended stood at Rs2,175cr registering a 212.1% yoy Growth. The company clocked its highest ever disbursements in Dec’21 (Rs414cr).
• Total cumulative disbursement stands at Rs4,689cr, since inception
• The Company’s AUM as of the end of December 31, 2021, stood at Rs2,589cr compared to Rs1,127cr as of Dec-20 registering a 129.7% increase on a yoy basis
• GRO Micro expansion stands at 2.9% of the AUM vs 2.6% a quarter ago
• The loan book is 77% secured with a well-diversified portfolio across sectors and geographies
• Portfolio GNPA stands at 2.4% as of December 31, 2021, Company has implemented the revised NPA recognition norms and GNPA stands increased by 0.4% on account of implementation of revised norms by RBI.

b) Liability and Liquidity Position

• The Company further expanded its active lender base to 50 lenders by adding 28 new lenders over past 12 months, testimony to the faith in the business model of U GRO Capital.
• The Company’s total debt rose to Rs1,764cr in Q3FY22, with overall debt equity ratio still at 1.84x indicating a long runway for growth.
• Leading the future-trend in the industry of Co-lending collaborations. UGRO Capital partnerships with SBI and Central Bank of India during the quarter expanded our portfolio of partners, giving weight to our various product offerings.
• The company maintains a CRAR of 36%, indicating a comfortable capital position.

Shachindra Nath, Executive Chairman and Managing Director of UGRO 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 Q3FY22 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).”