 "UGRO Capital profit rises 245% in Q1 helped by robust loan disbursement")
DataTech lending platform UGRO Capital on Wednesday said its profit after tax rose 245 per cent to Rs 25.2 crore in the April-June quarter, helped by robust loan disbursement.
The non-banking finance company, which focuses on borrowers from the micro, small and medium enterprises (MSME) segment, had reported a Profit After Tax (PAT) of Rs 7.3 crore in the year-ago period.
"The company's investment in distribution channel, large lender base and data driven underwriting model has stabilised monthly AUM increase of Rs 500-plus crore per month," UGRO Capital said in a release.
The company's Asset Under Management (AUM) surged to Rs 6,777 crore as on June 2023, up 85 per cent from the year-ago period.
The disbursement rose by 50 per cent to Rs 2,036 crore during the reporting quarter, which also improved the net income to Rs 125.6 crore.
Its total income stood at Rs 218.3 crore in the first quarter of FY24, up 79 per cent year-on-year, while Gross Non-Performing Assets (GNPA) stood at 1.8 per cent of the total AUM.
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"UGRO Capital has set ambitious goals for FY24, and we are dedicated to gaining 1 per cent market share with 1 million small businesses as our valued customers over the next three years," Shachindra Nath, Vice Chairman and Managing Director of UGRO Capital, said.
Shares of UGRO Capital ended at Rs 269.35 apiece on the BSE on Wednesday, 3.41 per cent lower from its previous close.
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