U GRO Capital PBT Grew 315% YoY to INR 83.8 Cr
Announced Equity Capital Raise of INR 340 Cr in April 2023 - Private Placement Offering of INR 240 Cr to IFU (Investeringsfonden for Udviklingslande) through its Danish Sustainable Development Goals Investment Fund K/S and QIP of INR 100 Cr from marquee domestic investors like SBI Life, GoDigit and SBI General
The Board of Directors of UGRO Capital Limited approved the financial results for the Quarter and Financial Year ended 31st March 2023 at its meeting held on Monday, 15th May 2023.
UGRO Capital, a DataTech NBFC and India largest Co-lender in the MSME segment continued its growth momentum in the last quarter of FY23. The company’s AUM was INR 6,081 Cr (as of Mar’23), up 105% from Mar’22. Total Income for Q4’23 was INR 217.2 Cr (up 92% YoY and 15% QoQ) and INR 683.8 Cr for FY23 (up 119% from FY22). In Q4’23, UGRO Capital reported a 131% increase in consolidated net profit to INR 14.0 Cr, up from INR 6.1 Cr the prior year. The Company has efficiently leveraged the co-lending partnerships, with off-book AUM at 40%, higher than its FY23 guidance of 35%.
UGRO Capital has collaborated with ten co-lending partners, over 65 lenders, 35 fintechs, and 1,200 GRO partners to provide data-backed customized finance solutions to over 46,000 MSMEs across India.
Brief Financial Snapshot (INR in Cr.)
|Gross loans originated / Disbursement||2,314||1,874||23%||7,200||3,138||129%|
|Net Total Income||126.8||108.0||17%||390.5||174.9||123%|
|PAT – Adjusted||23.2||17.3||34%||60.4||14.6||315%|
|Deferred Tax write-off||9.2||4.2||–||20.6||–|
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.”
UGRO Capital has recently launched its first brand campaign, a one-of-its-kind 3D animation film, Fund Island for the launch of its most awaited digital solution for small businesses. UGRO Capital’s newly launched GRO X App enables MSMEs across India to obtain collateral-free instant credit for immediate working capital requirements and to manage their financial liquidity.
Key performance highlights for Q4’FY23
- a)Growth, Expansion and Portfolio quality
- AUM of INR 6,081 Cr (up 105% YoY and 19% QoQ)
- INR 7,200 Cr of Gross Loans originated in FY23 (up 129% compared to FY22) and INR 2,134 Cr of Gross Loans originated in Q4’FY23 (up 140% YoY and 23% QoQ).
- Total Income stood at INR 217.2 Cr for Q4’FY23 (up 92% YoY and 15% QoQ) and INR 683.8 Cr for FY23 (up 119% compared to FY22)
- Net Total Income stood at INR 126.8 Cr for Q4’FY23 (up 101% YoY and 17% QoQ) and INR 390.5 Cr for FY23 (up 123% compared FY22)
- PBT increased to INR 33.7 Cr in Q4’FY23 (up 319% YoY and 51% QoQ) and INR 83.8 Cr in FY23 (up 315% compared to FY22)
- GNPA / NNPA as on Mar’23 stood at 1.6% /0.9% (as a % of Total AUM)
- Over 46,000 customers as on Mar’23
- 98 branches (as on Mar’23)
- b)Liability and Liquidity Position
- Total lender count stood at 66 as on Mar’223
- Total Debt stood at INR 3,149 Cr as on Mar’23, and overall debt to equity ratio was 3.2x
- Healthy capital position with CRAR of 20.23% (as on Mar’23)