UGRO Capital has reported a 15 per cent year-on-year (yoy) increase in third quarter (Q3FY25) net profit at ₹37.5 crore, against ₹32.5 crore in the year-ago period.
Net total income (difference between total income and interest expenses) of the MSME lending focussed non-banking finance company was up 34 per cent yoy at ₹218 crore (₹163 crore in the year-ago quarter).
Employee cost and other expenses rose 33 per cent yoy (to ₹65 crore) and 55 per cent (to ₹59 crore), respectively. Credit cost increased 39 per cent yoy to ₹41 crore (₹30 crore).
The NBFC’s assets under management increased 32 per cent yoy to ₹11,067 crore (₹8,364 crore). Net disbursement during the quarter (Gross disbursements – repayment received in Supply Chain Financing during the period) rose 35 per cent yoy to ₹2,098 crore (₹1,552 crore).
As per the expected credit loss matrix, 93.5 per cent of its AUM is in stage 1 (performing loans; 94.3 per cent as at December-end 2023), 4.4 per cent in stage 2 ( underperforming loans; 3.7 per cent) and 2.1 per cent in stage 3 (credit-impaired loans; 2 per cent).
Shachindra Nath, Founder and Managing Director of UGRO Capital, said, “We aim to scale our micro-enterprise portfolio to 35 per cent of AUM by March 2026, driving yield expansion and fostering financial inclusion.”
The overall contribution of the Emerging Market (EM) channel (‘Micro’ has been renamed as ‘EM’ for better reference to the company’s focus segment) stood at 19 per cent as of December 2024, as per the company’s presentation.
