Q2 2025 Ugro Capital Ltd Earnings Call Transcript
Key Points
- Ugro Capital Ltd (BOM:511742) achieved a significant milestone by reaching an AUM of INR10,000 crores, reflecting strong growth for a relatively young company.
- The company reported its highest-ever loan origination of INR1,917 crores in the last quarter, indicating robust business momentum.
- Ugro Capital Ltd has been recognized as India's best fintech lender of the year, highlighting its innovative use of data and technology in MSME financing.
- The company has successfully expanded its branch network, with plans to reach 250 locations by the end of the year and 400 by the next year, supporting its growth strategy.
- Ugro Capital Ltd has established strong partnerships with over 60 lenders, including domestic banks and global financial institutions, enhancing its co-lending capabilities.
- The company's gross NPA stood at 2.1%, with a slight uptick in unsecured loans and micro enterprises, indicating some asset quality challenges.
- Ugro Capital Ltd's interest income faced compression due to regulatory changes affecting the timing of interest charges.
- The supply chain finance segment has been winding down due to unprofitable yields, with a peak NPA of INR52 crores, impacting overall credit costs.
- Despite achieving a rating upgrade, the company has not yet realized significant benefits in terms of reduced borrowing costs.
- The company's ROA target of 4% by FY26 is ambitious, requiring significant improvements in yield, cost of borrowing, and operating leverage.
Ladies and gentlemen, good day and welcome to the UGRO Capital Limited Q2 FY25 conference call. (Operator Instructions)
Please note that this conference is being recorded.
I now hand the conference over to Mr. Deepak Khetan, Head of Investor Relations. Thank you, and over to you, sir.
Thank you, Sagar. Good afternoon, everyone. I welcome you all to Second Quarter FY25 Earnings Call of UGRO Capital Limited. We will have a short presentation from the management followed by Q&A. In case we are unable to answer all your queries today, you can connect with us post the call, and we'll be happy to talk to you.
Discussion done today are subject to the disclaimer made in the earnings presentation, which has been already uploaded on exchanges and our website. I'll now introduce our management. We have our Founder and Managing Director, Mr. Shachindra Nath there. Next to him, we have our Chief Financial Officer, Mr. Kishore Lodha. Next to him, we
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