Ugro Capital Limited · NSE:UGROCAP
Ugro Capital — Q4 FY2022 Earnings Presentation
30 slides from Ugro Capital's earnings presentation, May 25, 2022
Slide 1: U GRO Capital | Q4'22 & FY22 Investor Presentation
U GRO Capital | Q4’22 & FY22 Investor Presentation Catalyzing the future of credit access for MSMEs NSE: UGROCAP | BSE: 511742 May 25th , 2022 Slide 1
Slide 2: Safe Harbor
Safe Harbor This presentation has been prepared by UGRO Capital Limited (the “Company”) solely for your information. By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation is for information purposes only and should not be deemed to constitute or
Slide 3: Table of Contents
Table of Contents 01 Executive Summary 02 Portfolio Performance 03 Operating and Financial Metrics 04 Board and Management Team 05 Annexures Slide 3
Slide 4: Executive Summary
Executive Summary Slide 4
Slide 5: Data can be the engine for SME credit in India
It has been proven that data can be the engine for SME credit in India End to End MSME Digital Lending is now a reality Tax and Legal B2B e- Identity Layer Aadhar E KYC E Sign Filing Apps Commerce Neo Banks Social Networks Embedded Credit 50% + of MSME and Payments Layer UPI Aadhar Based Accounting
Slide 6: Evolved to a Data Tech Company within 3 years of inception
Evolved to a Data Tech Company within 3 years of inception Underwriting (GRO Score 2.0) • Machine learning algorithms to synthesize large volume of information • In house business rule engine Portfolio Monitoring enabling faster rollout of newer models Origination Powered by Data & Tech (Early Warni
Slide 7: Data driven proprietary scoring model powered by AI / ML Models
Data driven proprietary scoring model powered by AI / ML Models Ability to capture alternate data from banking and bureau.. … and to draw meaningful insights out of unorganized data GRO 2.0 Credit Bureau Data Across Multiple parameters + Banking Data Turnover and transaction intensity Borrowing mix
Slide 8: GRO Score 2.0 – Proof of Concept
GRO Score 2.0 – Proof of Concept Performance of Recent Logins (May-21 to Oct-21) 30+ DPD % in 6 months 90+ DDP % in 6 months Score Disbursed cases Non Disbursed 4% 4% Band count cases count 9% 9% 8% 8% 3% A 2,352 4,885 6% 5% 5% 2% 2% B 1,346 3,381 4% 2% 3% 1% 2% 2% 1% 1% 1% 1% C 585 2,779 1% 0% D 22
Slide 9: Deep analysis of Macro and Micro Economic Factors to develop sector focus
Deep analysis of Macro and Micro Economic Factors to develop sector focus A continuing process involving extensive study of macro and micro economic parameters carried out in conjunction with market experts like CRISIL 8 sectors & 200+ Ecosystem representing ~50% of the total MSME Lending market and
Slide 10: Development of System Architecture for full-Suite SME Lending
Development of System Architecture for full-Suite SME Lending GRO-Plus GRO-Direct Intermediaries Direct Interface An uberized distribution Direct to customer model for FOS origination NBFCs/ Suppliers (Online) channel – went and onboarding DSAs, CAs FinTechs live in beta phase in and other intermedi
Slide 11: Multi pronged approach led by tech capabilities
Multi pronged approach led by tech capabilities a Branch Led Channel | GRO-Plus b Ecosystem Channel | GRO-Chain ▪ Prime Loan Branches – 18 Branches with loans ▪ Supply Chain Financing – Anchor and its largely sourced through Intermediate channel ecosystem financing of Supply Chain ▪ Micro Loan Branc
Slide 12: Building India's largest Co-Lending platform: Lending as Service
Building India’s largest Co – Lending platform: Lending as Service Increasing Mix of Off Book AUM ▪ Secured Business Loans ▪ Original Agreement Signed – Oct’19 ▪ Agreement under new co-lending regulation – Jun’21 On Book Portfolio Off Book Portfolio ▪ Small Ticket Secured and Unsecured Business Loan
Slide 13: Business Model Evolving to Generate Significant Cashflow
Business Model Evolving to Generate Significant Cashflow FY22 Q4FY22* FY23P FY25P AUM (INR Cr) 2,969 2,969 7,000+ 20,000+ Off Book AUM % 16% 16% 35% + ~ 50% Yield 14.3% 15.4% ~ 14.5% ~ 15.0% Cost of Borrowing % 10.7% 11.2% ~ 10.75% ~ 9.5% NIM % 7.1% 7.3% ~ 7.0% ~ 7.5% Other operating Rev. % 1.8% 3.0
Slide 14: Portfolio Performance
Portfolio Performance Slide 14
Slide 15: Well Diversified and Granular Portfolio
Well Diversified and Granular Portfolio Product Mix Geography Mix Sector Mix Prime Loans 21% Micro Loans 17% <1% 27% 1% 18% Supply Chain Finance <1% 1% 3% 10% 54% <1% 4% Machinery Loan 8% 1% <1% <1% <1% <1% 7% 11% Partnerships and 4% 9% <1% 4% 15% Alliances 9% <1% 7% <1% 6% 9% 13% ▪ Delhi/NCR On Boo
Slide 16: Portfolio Provisioning, Collection Efficiency & Restructuring Highlights
Portfolio Provisioning, Collection Efficiency & Restructuring Highlights Overall Collection Efficiency Trend ▪ Majority of the restructuring was done in the Branch Led Portfolio within the Education & Hospitality sector. ▪ ~82% of the restructured portfolio is current as of Mar’22. The NPA column 93
Slide 17: Operating and Financial Metrics
Operating and Financial Metrics Slide 17
Slide 18: Key Highlights – We have scaled up across all parameters
Key Highlights – We have scaled up across all parameters All Fig in ₹ Cr Q4FY21 Q3FY22 Q4FY22 FY21 FY22 AUM 1,317 2,589 14.7% 2,969 1,317 125.4% 2,969 Gross Disbursements 449 1,053 8.5% 963 1,147 173.6% 3,138 Net worth 952 959 0.7% 966 952 1.5% 966 Branches 34 82 11.0% 91 34 167.6% 91 Lenders 29 50
Slide 19: Operating & Financial Metrics (1/2)
Operating & Financial Metrics (1/2) Consistent expansion of AUM with strong Equity & Debt support AUM (INR Cr) Disbursals (INR Cr) GNPA and NNPA (in %) 2,969 5,652 2,589 4,689 1,933 3,636 2.7% 2.3% 2.3% 1.9% 2.4% 2.3% 2,514 2,845 1.7% 1.9% 2.0% 1,317 1,375 1.8% 1.7% 1,127 1.4% 791 1,053 963 449 331
Slide 20: Operating & Financial Metrics (2/2)
Operating & Financial Metrics (2/2) Operating & financials ratios continue to improve with scale Operating Income (INR Cr) & Portfolio Yield$ Finance Cost (INR Cr) & Cost of Debt* NII (INR Cr) and NIM%^ 15.5% 15.8% 15.7% 16.0% 16.4% 8.1% 7.3% 7.9% 7.6% 7.3% 10.4% 10.6% 10.2% 10.3% 10.1% 94.0 44.3 49
Slide 21: Finance | Income Statement & ROA Tree
Finance | Income Statement & ROA Tree Income Statement (₹ Cr) Q4 FY21 Q3 FY22 Q4FY22 ROA Tree* FY21 FY22 ROA Tree ^ Interest Income 43.7 73.4 94.0 15.4% 146.8 272.2 14.3% Interest expenses 16.3 38.4 49.7 8.2% 44.6 137.4 7.2% NII 27.4 35.0 44.3 7.3% 102.3 134.8 7.1% Gain on derecognition of financial
Slide 22: Finance | Balance Sheet
Finance | Balance Sheet Balance Sheet (₹ Cr) FY21 FY22 Balance Sheet (₹ Cr) FY21 FY22 Financial Assets Financial liabilities Cash and Bank Balance 316.0 188.4 Trade payables 3.3 6.8 Derivative financial instruments 0.0 0.2 Debt securities 315.6 703.8 Loans 1,282.7 2,450.5 Borrowings (other than debt
Slide 23: Board and Management Team
Board and Management Team Slide 23
Slide 24: Eminent Board of Directors
Eminent Board of Directors Legend: Independent Directors, Non-executive Directors Satyananda Mishra – Non Executive Chairman Rajeev K. Agarwal - Chairman, Stakeholder Committee Ex-Chairman, MCX, Ex-CIC, GOI, Ex-Director - SIDBI Ex-Whole Time Member, SEBI S. Karuppasamy - Chairman, Compliance Committ
Slide 25: Strong Leadership Team with 190+ years of cumulative experience
Strong Leadership Team with 190+ years of cumulative experience Shachindra Nath - Vice Chairman & Managing Director J Sathiayan - Chief Business Officer 25+ Years of Experience 29+ Years of Experience Amit Mande - Chief Revenue Officer Pia Shome - Chief People Officer 20+ Years of Experience 15+ Yea
Slide 26: Annexures
GRO Annexures Slide 26
Slide 27: UGRO Capital - Overview
UGRO Capital - Overview About UGRO Vision / Mission Our Thesis Problem of MSMEs can be solved by U GRO Capital limited is a BSE and NSE listed, Mission: ‘To Solve the technology focused, small business lending platform. Bringing homogeneity to a non-homogeneous Sector Unsolved’ Built on 5-pi
Slide 28: Platforms further integrated with rich data enrichment layer
Platforms further integrated with rich data enrichment layer Sourcing Channel Branch Channel Partnership & Alliances Supply Chain Financing Partnership & Alliances Digital Direct (Prime + Micro) Marketplace A Plug and Play Distribution Module Partnership & GRO-Plus & Micro GRO Direct Alliances API F
Slide 29: UGRO Capital – Journey since inception
UGRO Capital – Journey since inception 2,969 Cr 1,375 Cr 861 Cr 79 Cr Raised Started Capital Disbursing Mar’19 Mar’20 Jun’21 Mar’22 Jul’18 Jan’19 Growth Stage Covid – 19 Cautious Resumption of Covid – 19 Resuming Growth Stage Operational Shut down Operations Wave 2 (Apr – Jun) Operational Slow Down
Slide 30: Thank You
Thank You Contact Information : investorrelations@ugrocapital.com www.ugrocapital.com Slide 30