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U GRO Capital, a listed, MSME lending fintech platform, continues its growth momentum with an AUM of INR 3,656 crore as of June 30, 2022 (+166% compared to June 30, 2021) and is on track to cross the mark of INR 7,000 crore AUM by March 2023.
The company has effectively demonstrated the power of co-lending, after having kicked off this stream by experimenting with top Public Sector Banks. The current off-book AUM stands at ~INR 750 crore (21% as on June 30, 2022). The company aims to grow its loan book under co-lending partnerships by 3X to over INR 2,000 crore by March 2023.
U GRO Capital has pioneered ‘Lending as a Service (LaaS)’ model and is revolutionizing MSME lending through its data analytics prowess and robust technology architecture. As a testimony to the same, U GRO Capital’s proprietary scoring model (GRO Score) has successfully processed 21,000+ applications, 67,000+ bureau records, 45,000+ bank statements and 14,500+ GST records in the last one year.
Key performance highlights for Q1 FY23
- a)Loan Portfolio: Loan and Income Growth, Portfolio quality
o AUM of INR 3,656 crore (+166% compared to Q1’FY22 and +23% compared to Q4’FY22)
o INR 1,359 crore of Gross Loans originated in Q1’FY23 (+311% compared to Q1’FY22 and +41% compared to Q4’FY22)
o Total Income stood at INR 123.8 crore (+141.4% compared to Q1’FY22 and +8.4% compared to Q4’FY22)
o Profit before tax (PBT) increased to 10.4 crore (+340.6% compared to Q1’FY22 and +29.3% as compared to Q4’FY22)
o Profit after tax (PAT) increased to 7.3 crore (+329.4% compared to Q1’FY22 and +20.7% as compared to Q4’FY22)
o GNPA/ NNPA as on Jun’22 stood at 1.7% /1.2% (As a % of Total AUM)
- b)Liability and Liquidity Position
o Total lender count increased to 63 as on Jun’22, added 8 new lenders during Q1’FY23
o Total Debt stood at INR 2,208 crore as on Jun’22, and overall debt to equity ratio was 2.26x
o Healthy capital position with CRAR of 28% (as on Jun’22)
- c)Branch, Customer Network and Employee Strength
o 25,000+ customers as on Jun’22 (+5,000 customers in Q1FY23)
o 96 branches (as on Jun’22), addition of 5 new branches during the quarter
o 1,275+ Employees as on Jun’22, net employee addition of 165+ during Q1’FY23
Brief financial snapshot:
| Particulars | Q1’22 | Q4’22 | Q1’23 | Growth (Y-o-Y) | Growth (Q-o-Q) |
| Total Income | 51.3 | 114.2 | 123.8 | 141.3% | 8.4% |
| Interest Expense | 22.4 | 49.7 | 53.1 | 137% | 6.9% |
| Net Total Income | 28.9 | 64.5 | 70.7 | 144.6% | 9.6% |
| Operating Expenses | 21.6 | 47.3 | 51.0 | 136.1% | 7.9% |
| Impairment on Financial Instruments | 4.9 | 9.3 | 9.4 | 91.8% | 1.0% |
| PBT | 2.4 | 8.0 | 10.4 | 333.3% | 29.3% |
| PAT | 1.7 | 6.1 | 7.3 | 329.4% | 20.7% |
Commenting on the results, Mr. Shachindra Nath, Vice Chairman and Managing Director of U GRO Capital stated, “U GRO Capital is at the forefront of using data analytics and technology to serve the underserved MSME segment. We have been pioneers of ‘Lending as a service’ by harnessing the power of Co-lending/ Co-origination models and steering the company towards transitioning into a lending platform through off-balance sheet AUM approach. Operational efficiencies have started to kick in with improving profitability with each passing quarter. The company is on track to achieve AUM of INR 20,000 crore by 2025, as we achieved our highest ever disbursement in Q1 FY23.”