U GRO Capital solidifies liability base of INR 400 crores; July disbursals bounce back to 80% of pre-COVID levels
Shachindra Nath, EC & MD, U GRO Capital.jpg
Key highlights for Q1 FY21 2020:
Loan Portfolio
The Company’s AUM at the end of June 30, 2020 stood at INR 847.4 crores across
7,343 customers. Of the total loan book, 69% is secured. Sectors including
Education, Light Engineering and Electrical Equipment & Components constitute
54% of the total loan book whereas geographical concentration at a state-level is
at a maximum of 21%
The disbursals have resumed across all U GRO Capital locations amid the
lockdown, with July figures reaching approximately 80% of pre-COVID levels
The Company is focused on lending through its Sanjeevani program for essential
goods/services providers and ECLGS in near future, with high market demand
demonstrated for both Liability
Liability book reached INR 387 crores as of the end of Q1 FY21, sourced from
multiple public & private sector banks in various forms including term loans,
NCDs and commercial papers
In the period between March-July 2020, the Company has raised an incremental
INR 150 crores of sanctions, of which over INR 100 Cr of sanctions have not yet
been drawn down on
U GRO Capital has availed liability through select government programs including
the Partial Guarantee Scheme and TLTRO 2.0
The Company has issued its first set of commercial papers in July 2020 – 12-
month tenor with a face value of INR 10 crores
The Company’s borrowing rates have come down considerably in the past 6
months, with an average rate at 10.5% as of June 30, 2020
The Company remains highly liquid with over INR 300 crores of liquidity on the
balance sheet
Liability
Liability book reached INR 387 crores as of the end of Q1 FY21, sourced from
multiple public & private sector banks in various forms including term loans,
NCDs and commercial papers
In the period between March-July 2020, the Company has raised an incremental
INR 150 crores of sanctions, of which over INR 100 Cr of sanctions have not yet
been drawn down on
U GRO Capital has availed liability through select government programs including
the Partial Guarantee Scheme and TLTRO 2.0
The Company has issued its first set of commercial papers in July 2020 – 12-
month tenor with a face value of INR 10 crores
The Company’s borrowing rates have come down considerably in the past 6
months, with an average rate at 10.5% as of June 30, 2020
The Company remains highly liquid with over INR 300 crores of liquidity on the
balance sheet
Financial Performance
The Company’s total income stands at Rs. 30.79 crores for Q1 FY21 with a PAT of
Rs. 3.73 crores and CRAR of 99.42%
The net worth of the Company stands at Rs. 926.1 crores as of June 30, 2020 with
book value per share being INR 131.31
The Company’s GNPA and NNPA figures stands at 1.02% and 0.57% respectively
Operational Parameters
The GRO Partner network (DSAs) now stands at 393 partners, an 11% increase
compared to Q4 FY20
A total of 177 employees have now been onboarded across nine branches:
Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad,
Ahmedabad, Jaipur and Pune
Keeping in mind the social distancing norms, the Company has seamlessly
transitioned to a consolidated platform conducting Video PDs rather than the in-
person process, in turn, maintaining strict underwriting standards and not
jeopardizing the health of the customers or employees
The Company has registered with CGTMSE, allowing 75% credit guarantee for
credit facilities of INR 2 crores and under for micro and small enterprises
The Company has taken cost optimization measures during the COVID-19 period,
leading to significant savings on operating expenses
Operational Parameters
The GRO Partner network (DSAs) now stands at 393 partners, an 11% increase
compared to Q4 FY20
A total of 177 employees have now been onboarded across nine branches:
Mumbai (Head Office), Delhi, Kolkata, Bangalore, Chennai, Hyderabad,
Ahmedabad, Jaipur and Pune
Keeping in mind the social distancing norms, the Company has seamlessly
transitioned to a consolidated platform conducting Video PDs rather than the in-
person process, in turn, maintaining strict underwriting standards and not
jeopardizing the health of the customers or employees
The Company has registered with CGTMSE, allowing 75% credit guarantee for
credit facilities of INR 2 crores and under for micro and small enterprises
The Company has taken cost optimization measures during the COVID-19 period,
leading to significant savings on operating expenses
U GRO Capital, a BSE listed, technology-focused platform, today announced its
financial results for Q1 FY21. With technology and innovation being the backbone, U
GRO Capital strives towards bridging the SME lending gap. We observed the past few
months of lockdown as a critical opportunity to reflect, contemplate and work
towards enhancing the Company’s strategic fronts. This involved review of existing
processes and the use of technology to digitize underwriting processes and render
them contactless, to be able to address the requirement of MSMEs remotely in-line
with the new normal.
Commenting on the results, Mr. Shachindra Nath, Executive Chairman and
Managing Director of U GRO Capital stated, “Stepping into 2020, businesses were 150 crores from diverse sources, including under government schemes such as PGC
and TLTRO 2.0, and we have a strong pipeline in place to cater to our future liability
needs also. I believe that the worst is now behind us in the lending sector, and the
well-run firms will enjoy the opportunity to build their market share in the coming
months.”
