UGRO Capital reports 244% jump in Q1 net profit to ₹25.2 crore

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UGRO Capital reported a 244 per cent year-on-year (y-o-y) jump in net profit at ₹25.2 crore in the first quarter (Q1) of FY24 against ₹7.3 crore in the year ago period on the back of strong growth in disbursements.

Total income of the data tech non-banking finance company, which lends to MSMEs, is up 79 per cent y-o-y to ₹218.3 crore (₹121.7 crore in the year ago quarter). Interest expense increased by 76 per cent y-o-y to ₹92.7 crore (₹52.8 crore).

Operating expenses increased by 40 per cent y-o-y to ₹69.1 crore (₹49.2 crore). Credit cost rose 124 per cent yoy to ₹20.9 crore (₹9.4 crore).

Gross non-performing assets (NPAs) / Net NPA as on June-end 2023 stood at 1.8 per cent /1.0 per cent of total AUM/ assets under management against 1.70 per cent/1.20 per cent as at June-end 2022.

The company’s assets under management rose 85 per cent yoy to ₹6,777 crore as of June-end 2023 from ₹3,656 crore as of June-end 2022.

Shachindra Nath, Vice Chairman and Managing Director, said UGRO Capital plans to gain 1 per cent market share with 10 lakh small businesses as its customers over the next three years.