Ugro Capital Limited — PPTs, 24-01-2025: Investor Presentation

**Financial Highlights:** UGRO Capital reported impressive growth in Q3’FY25, with Assets Under Management (AUM) reaching ₹11,067 Cr, up 32% year-on-year. Net disbursements totalled ₹2,098 Cr, a remarkable 35% increase y-o-y. The company also achieved its highest quarterly net profit of ₹37.5 Cr, a 15% y-o-y rise, contributing to a stable PAT margin of 2.2%. The Cost to Income Ratio stood at 54.6%.

**Strategic Initiatives and Growth Drivers:** The successful acquisition of the embedded finance platform, MSL, has driven significant asset growth, with a current AUM of ₹302 Cr. Expansion efforts include adding 74 branches, bringing the total to 224. The Emerging Market channel saw a substantial contribution of 19% to total disbursements.

**Business Developments:** The highest-ever quarterly borrowings of approximately ₹1,400 Cr underlines the company’s strong traction in the lending space. The high collection efficiency remains robust at 96%, indicating effective portfolio and risk management strategies.

**Market Position and Competitive Advantage:** UGRO Capital continues to enhance its competitive edge in the MSME lending sector with technology-driven, cashflow-based underwriting models. This positions the company well to address the sizable credit gap in the MSME market, projected at ₹1,03,000 Cr.

**Investor Implications:** The company’s strong growth trajectory and strategic initiatives support a positive outlook for future performance, potentially benefiting investors looking for exposure in the rapidly expanding MSME lending market.