UGRO Share Capital Grows 7% After Q1 Profits, Assets Under Management Grows 62% YoY to Rs1,375cr

UGRO Capital achieved a net profit of Rs1.70cr for the quarter ending June 2021 (T1FY22) lower than Rs3.73cr a year ago in the same period. However, the T1 PAT was up from Rs1.56cr in the previous quarter.

Net Interest Income (NII) for Q1FY22 was Rs27.4cr compared to Rs23.8cr in Q1FY21. ~ 15% increase on an annual basis. The company’s total income increased to Rs51.3cr in the first quarter of FY22, compared to Rs30.8cr in the first quarter of FY21, an increase of 67% year-on-year.

The total provisioning as of June 21 was Rs20.6cr, 89% above the provision mandated under the RBI Directive. The GNPA and NNPA portfolio stood at 2.29% and 1.88% respectively as of June 30, 2021.

Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital, said: “The first quarter of fiscal 22 was a difficult quarter for the entire lending industry due to the disruption caused by the second wave of COVID. We followed a targeted approach to lending and took advantage of opportunities available in moderately affected states. With the impact of COVID receding in June, we have rebounded strongly. I am happy to inform you that in July we recorded our highest monthly disbursement. “

Nath added, “We will continue the momentum and traction we saw in July and remain committed to achieving our 5 year goals. Even on the liability side, our presence continued to grow and we now have 32 active lenders in our portfolio. I am delighted to share with you the progress we have made on all fronts.

The company’s assets under management (AUM) as of July 31, 2021 amounted to Rs1,561cr. The AUM was Rs 1,375cr as of June 30, 2021, compared to Rs 847cr as of June 30, 2020, registering a 62% increase year-on-year.

The cumulative disbursement crossed Rs 3,000 and the monthly disbursement crossed 250 cr in July 2021. The loan portfolio is 74% guaranteed and the greatest sector concentration is light engineering (29%) and the greatest geographic concentration is Delhi NCR (20%).

At around 10:40 am, URGO Capital was trading at Rs120 per coin, up 5% on Sensex. The stock has gained nearly 7% with an intraday high of Rs121.90 per coin which was recorded a few minutes ago.

Sallie R. Loera