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U GRO Capital reports Rs 17.2 crore profit in Q2 FY21

Private lending platform U GRO Capital on Friday said, “It has reported Rs 17.2 crore in net profit in Q2 FY2021.”

In a filing with the exchange, U GRO said, “The company has recorded Rs 17.2 crores in Q2 FY2021 as compared to Rs 3.3 crores in the same quarter last year.”

“The QoQ’s total income has increased by 13 percent to Rs 34.8 crores in Q2 FY2021 from Rs 30.8 crores in Q1 FY2021, as against to Rs 21.7 crores in Q2 FY2020,” the filing added.

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“By the end of September 30, 2020, the company’s AUM stood at Rs 978 across 7,734 live loans. The loan book is 67% secured and the large sectoral and geographical concentrations both stand at 21%,” the company added.

Speaking on the results, Mr. Shachindra Nath, Executive Chairman and Managing Director of U GRO Capital stated, “This quarter has seen the gradual shift towards business normalcy in the MSME space, which is a very positive sign for the economy as a whole. Never before have fundamentally strong MSMEs have had such a need for financing, and we are working towards addressing as many of these needs as is possible. We have taken great strides in terms of innovation and our partnerships, and we are superbly placed to increase our distribution levels beyond what they were pre-COVID. I am most excited about the launch of our ‘Saathi’ program and our nascent direct distribution branches, which will broaden our target demographic considerably.”

“We are proud of the financial prudence that has allowed us to maintain profitability throughout the COVID-19 period despite the ample provisioning we have taken. Our portfolio remains strong in the face of unprecedented challenges, and we are confident that we are on the right path to achieve our vision of ‘Solving the Unsolved – India’s $300B MSME Credit Gap,” Nath said.

The company has also raised an incremental Rs 191 crores of liability in Q2 for the total of Rs 578 crores of sanctioned liability at an on-book blended rate of 10.6% with debt cost having significantly reduced in FY21.