UGRO Capital gains 4% after firm reports 48% y-o-y growth in AUM at over ₹9,000 crore

Shares of UGRO Capital rose over 4% during Tuesday’s trade after the company reported a 48% year-over-year (y-o-y) rise in its assets under management (AUM) at over ₹9,000 crore as at March 2024.

Gross loans originated during the fourth quarter of fiscal year 2024 stood at ₹2,850 crore compared to ₹2,810 crore in Q3FY24 and ₹2,314 crore in Q4FY23. At the same time, net loans originated during the fourth quarter stood at ₹1,555 crore compared to ₹1,552 crore in Q3FY24 and ₹1,459 crore in Q4FY23.

UGRO Capital’s total debt stood at over ₹4,600 crore as at March 2024, the company stated. It had raised ₹250 crore through non-convertible debentures (NCD) from the Asian Development Bank (ADB) in January 2024 and ₹200 crore in public NCD in February 2024.

It pointed out that the firm’s collection efficiency continues to remain strong at 96% in Q4FY24.

During the third quarter of FY24, UGRO Capital reported a 51% rise in its net total income at ₹162.6 crore while net profit rose 148% y-o-y to ₹32.5 crore. AUM saw a y-o-y growth of 64% as at December 23. “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 ₹500 crore,” the company had said.

Gross non-performing assets (NPA) stood at 2% of the total AUM while net NPA stood at 1.1% as at end December 2023.

Shachindra Nath, Managing Director of UGRO Capital said that the firm’s GNPA has increased by 0.1% quarter-on-quarter and 0.3% year-on-year basis, which is as per the plan. “The increase is a function of our portfolio, which has been maturing over a period of time, and we do not see it as a credit deterioration as our collection efficiency and data have remained stable and tracks well,” he said.

Shares of UGRO Capital have lost over 2% since the beginning of the year. The stock has gained over 67% in the last one year.