Q4 2025 Ugro Capital Ltd Earnings Call Transcript
Key Points
- Ugro Capital Ltd (BOM:511742) achieved a 30% year-on-year increase in disbursements, reaching INR7,651 crores for FY25.
- The company reported its highest ever quarterly origination of INR2,436 crores in Q4 FY25, marking a 57% year-on-year and 16% quarter-on-quarter growth.
- Ugro Capital Ltd expanded its branch network significantly, adding 85 new emerging market branches in FY25, with plans to reach 400 branches by March 2026.
- The company's total assets under management grew by 33% year-on-year to INR12,003 crores as of March 2025.
- Ugro Capital Ltd maintained stable asset quality with a GNPA of 2.3% and NNPA of 1.6%, alongside a provisioning coverage ratio of 47% and collection efficiency at 95%.
- The company faces challenges from increased competition in the MSME financing sector, with larger NBFCs and banks entering the market.
- There are concerns about the impact of new co-lending guidelines, which may cause short-term operational hiccups as the company transitions to the new framework.
- Ugro Capital Ltd's cost of borrowing remained stable at 10.61%, which may be higher compared to some competitors with lower funding costs.
- The company's emerging market portfolio has a high operational expense ratio, currently around 8% to 9%, which is expected to decrease as branches mature.
- There is uncertainty regarding the conversion of warrants and CCDs, with market conditions affecting the decision-making of investors.
Ladies and gentlemen, good day and welcome to the UGRO Capital Limited Q4 FY25 conference call hosted by Emkay Global Financial Services Limited. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Kishan Rungta from Emkay Global Financial Services. Thank you and over to you, sir.
Thank you. Good evening, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Mr. Shachindra Nath, Founder and MD; Mr. Kishore Lodha, CFO; Mr. Anuj Pandey, CRO; Mr. Amit Mande, CRO - Chief Revenue Officer; Mr. Sharad Agarwal, CTO; and Ms. Ritu Singh, Senior Economist and Head IR.
I shall now hand over the call to management for the opening remarks. Over to you, sir.
Thank you, Mr. Rungta. Good evening, everyone. I'm delighted to share UGRO Capital's strong
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