The shares of this fintech company gained up to 8 percent after the company’s net profit and revenue increased by 153 percent and 47 percent respectively in the third quarter.
With a market capitalization of Rs 2,573.81 crore, the shares of Ugro Capital Ltd were trading at Rs 277.95 per share, increasing around 2.83 percent as compared to the previous closing price of Rs 270.30 apiece.
Looking into the company’s Performance, Ugro Capital Ltd’s revenue increased by 9 percent on a quarter-on-quarter basis from Rs. 245 crores in Q2FY24 to Rs. 268 crores in Q3 FY24. Further, revenue increased by 47 percent year on year from Rs. 182 crores in Q3FY23 to Rs.268 crores in Q3FY24.
Ugro Capital Ltd’s net profit increased by 13 percent on a quarter-on-quarter basis from Rs. 29 crores in Q2FY24 to Rs. 33 crores in Q3FY24. Further, net profit increased by 153 percent year on year from Rs. 13 crores in Q3FY23 to Rs.33 crores in Q3FY24.
The company’s assets have hung around 95 percent for the previous six quarters. Ugro Capital Ltd’s restructured loans have dropped from Rs 76.7 crore as of December 22 to Rs 34.3 crore as of December 23, while the Provision Coverage Ratio has increased from 38 percent as of December 22 to 49 percent as of December 23.
The business introduced renewable energy to Machinery Financing to fund rooftop solar. Ugro established a solid monthly disbursement run rate of Rs 75 crores and successfully scaled out its Machinery Financing book to Rs 700 crores by March 2023.
Ugro Capital Ltd. reported return ratios in the recent financial year with a return on equity (ROE) of 4.08 percent and a return on capital employed (ROCE) of 10.9 percent.
Ugro Capital Ltd’s recent shareholding pattern, The Promoters of The company own 2.24 percent while Retail shareholders own a 72.19 percent stake in the company and Foreign Institutional Investors own a 19.77 percent stake.
Ugro Capital Limited is a technology-driven small business loan platform. The organization specializes in delivering bespoke financing solutions to small businesses working in eight specific industries.
Written by:- Abhishek Singh
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