Ugro Capital aims at Rs 1600 cr disbursals each quarter: MD | The Financial Express

Ugro Capital aims at Rs 1600 cr disbursals each quarter: MD

It has also started new verticals such as lending to micro enterprises and property loans.

Ugro Capital aims at Rs 1600 cr disbursals each quarter: MD
The company has reported AUM of Rs 4,375 crore in the three months ended September 30, higher by 20% y-o-y.

Fintech non-banking finance company (NBFC) Ugro Capital is looking to disburse up to Rs 1,600 crore in the current and next quarter to reach its guidance of Rs 7,000 crore of assets under management (AUM) by the end of the current financial year, Shachindra Nath, its vice chairman and managing director, said in an interaction. The company has reported AUM of Rs 4,375 crore in the three months ended September 30, higher by 20% y-o-y.

“We have given a AUM guidance of Rs 7,000 crore in FY23. We are just tracking to that … Given that the credit disbursal is data driven and the segment that the company caters to is MSME and all our other verticals are linked to consumption economy, there is demand,” he said.

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The company, which is driven by data infrastructure, typically issues loans from Rs 1 lakh to Rs 3 crore for segments like machinery financing and supply chain financing. It has also started new verticals such as lending to micro enterprises and property loans.

With co-lending as a major source of business, the company is focused on fulfilling the capacity assigned with existing partners, Nath said, adding that the company is not averse to tie-ups with private banks. As of now, the company has partnered with Bank of Baroda, State Bank of India, IDBI Bank, Central Bank of India, Punjab & Sind Bank and six other NBFCs for co-lending.

The NBFC relies mainly on bank borrowing as a source of funds and also does securitisation. The company’s debt was at Rs 2,725 crore in Q2FY23, Nath said, adding that the company is underlevered, with leverage ratio at 2.85 times. Despite a rising interest rate regime, the company has managed to reduce its borrowing costs due to maturity in its business, Nath said, adding that the net interest margin, in addition to its fee income, has improved to 7.5% as of September 30 compared to 7.3% in the year ago period. The company’s net profit improved by 56% y-o-y to Rs 5.3 crore in Q2.

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First published on: 19-11-2022 at 04:45 IST