U GRO Capital Q2 and H1 FY24 results.

New Delhi, October 27, 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 30 September 2023. The Company continued its growth momentum in the second quarter of FY24 with an AUM of INR 7,592 Cr (as of 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.

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%



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

  1. Growth, Expansion, and Portfolio quality
  • AUM of INR 7,592 Cr as of 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 9% /1.1% (as a % of Total AUM)
  • Over 59,000 customers as of Sep’23
  • 104 branches (as on Sep 23)

 Liability and Liquidity Position

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

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