Ugro Capital Limited · NSE:UGROCAP
Ugro Capital — Q4 FY25 Earnings Presentation
50 slides from Ugro Capital's earnings presentation, Apr 28, 2025
Slide 1: Revised Investor Presentation intimation to stock exchanges
28th April 2025 To BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, 5th Floor, Plot No. C/1, G Dalal Street Block Bandra, Kurla Complex, Bandra Mumbai 400001 (East) Mumbai 400051 Scrip Code – 511742 Symbol – UGROCAP Subject: Revised Investor Presentation
Slide 2: UGRO Capital Limited Q4'FY25 Earnings Presentation
UGRO Capital Limited Building an Institution for MSME Lending Data Tech Empowering Small Businesses (MSME) Lending Q4’FY25 Earnings Presentation 26 April 2025 NSE: UGROCAP | BSE: 511742 Slide 1
Slide 3: 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 4: Q4'FY25 Snapshot: Record Growth through Expansion and Strategic Initiatives
Q4’FY25 Snapshot: Record Growth through Expansion and Strategic Initiatives Consecutive highest loan Successful initiation in the Focus on Emerging Market (EM) origination Quarter: embedded finance disbursements: channel(2): INR 2,436 Cr compared to INR MSL acquisition(1) achieved AUM 85 Emerging Ma
Slide 5: Performance snapshot for Q4'FY25 and FY25
Performance snapshot for Q4’FY25 and FY25 Q4’FY25 Q4’FY24 FY25 FY24 AUM (INR Cr) 12,003 9,047 33% 12,003 9,047 33% Net Disbursement (INR Cr)(2) 2,436 1,554 57% 7,651 5,867 30% Off-book AUM 42% 45% 42% 45% 269 bps EPS for FY25(5) 269 bps INR 15.7 per share Net Total Income %(3) 14.1% 16.9% 277 bps 13
Slide 6: Key metrics for Q4'FY25 and FY25
Key metrics for Q4’FY25 and FY25 01 Asset 02 03 Asset 04 Liability & Profitability Growth Quality Co - lending AUM Net Total Income GNPA Borrowings As of Mar’25 : 12,003 Cr Q4’FY25 | FY25: As of Mar’25 : 2.3% As of Mar’25 : 6,904 Cr (+33% Y-o-Y) 231 Cr | 814 Cr (Mar’24: 2.0%) (+14% | +27% Y-o-Y) Co-
Slide 7: Serving a diverse set of customers with multi-product, multi-channel strategy
Serving a diverse set of customers with multi-product, multi-channel strategy UGRO’s Focus Prime Intermediated: Emerging Market: Tier 2 & Ecosystem Channel & Direct & Digital Alliances Metro & Tier 1/2 Branches beyond branches Green Asset Financing Collateral: Prime Property (For Collateral: Collate
Slide 8: Emerging Market Snapshot- Y-o-Y
Emerging Market Snapshot- Y-o-Y FY25 FY24 Quarterly trends- Last 5 quarters Strategy- Current/ Target # of branches: # of branches 212 127 67% • Target to increase the number of branches to 400 by March 2026 and increase geographical # of states 11 8 187 201 212 presence in another 2-3 states. 127 1
Slide 9: Embedded finance platform (MSL) acquisition tracking as per plan
Embedded finance platform (MSL) acquisition tracking as per plan Monthly disbursement trend Market opportunity MSL Performance so far.. (INR Cr) $22bn+ • Our targeted acquisition of the embedded 65mn finance platform (MSL) has tracked to the Total Merchants Annual Credit Requirement for Small right
Slide 10: Our collection efficiencies and portfolio performance remains stable
Our collection efficiencies and portfolio performance remains stable Collection Efficiency remains stable ECL Data (Mar’25) (INR Cr) Loan Exposure Loan Exposure (%) Total Collections (1) (including overdue) / Current Month Demand Stage 1 11,135 92.8% Stage 2 588 4.9% Stage 3 280 2.3% 96% 96% 96% 96%
Slide 11: Our collection efficiencies and portfolio performance remains stable
Our collection efficiencies and portfolio performance remains stable Stable Stage 1 assets Stable Stage 3 assets 94% 94% 93% 94% 94% 93% 2.3% 2.0% 2.0% 2.0% 2.1% 2.1% Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Dec'23 Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Adequate Provision Coverage Ratio 49% 48% 47% 47%
Slide 12: Unique capital light liability strategy
Unique capital light liability strategy Demonstrated ability to manage a prudent mix of on-balance sheet and off-balance sheet approach On-Balance sheet Diversified Lender base across Lending Co-Lending with Banks/NBFCs Institutions – Banks, Large NBFCs and Partnership with PSBs, Pvt. Banks and Larg
Slide 13: Overall off book ratio maintained
Overall off book ratio maintained High proportion of off - Book AUM mix Product wise Mix of off - Book AUM (Mar’25) On Book Portfolio Off Book Portfolio 3,313 3,170 1,680 274 1,642 1,181 743 9% 49% 35% 61% 51% 45% 45% 45% 45% 44% 44% 42% 100% 100% 91% 51% 65% 39% 49% Secured Business Emerging Supply M
Slide 14: Diversified Lender base and continued build-out of liability book
Diversified Lender base and continued build-out of liability book Total Debt (INR Cr) and Cost of borrowings Liability mix by lender profile Liability mix by product 10.70% 10.73% 10.75% 10.68% 10.61% 1% 4% 15% Cost of Borrowings 6,904 6,151 26% 5,344 11% Total Debt 4,653 Total Debt 46% 4,529 INR 6,
Slide 15: Finance | Quarterly Income Statement
Finance | Quarterly Income Statement Income Statement (₹ Cr) Q4’FY25 Q4’FY24 Y-o-Y Q3’FY25 Q-o-Q Interest Income 264.4 190.3 39% 254.4 4% Income on Co-Lending / Direct 119.3 122.4 (3%) 103.6 15% Assignment Other Income 28.7 17.7 62% 26.9 7% Total Income 412.4 330.4 25% 385.0 7% Interest Expenses 181
Slide 16: Finance | Income Statement and ROA Tree
Finance | Income Statement and ROA Tree Income Statement (₹ Cr) FY25 FY24 Y-o-Y FY23 ROA Tree FY25 FY24 Interest Income 958.8 704.6 36% 482.9 As a % of On Book AUM Income on Co-Lending / Direct Assignment 382.9 307.5 25% 154.1 Total Income 24.3% 25.1% Other Income 100.1 69.6 44% 46.8 Interest Expens
Slide 17: Finance | Balance Sheet
Finance | Balance Sheet Balance Sheet (₹ Cr) Mar-25 Mar-24 Balance Sheet (₹ Cr) Mar-25 Mar-24 Assets Liabilities Cash and Bank Balance 544 455 Trade payables 1 14 Loans 7,919 5,432 Debt securities 1,983 1,395 Investments 103 59 Borrowings (other than debt securities) 4,921 3,258 Other financial asse
Slide 18: Operating & Financial Metrics
Operating & Financial Metrics Total Income (INR Cr) & Portfolio Yield(1) Finance Cost (INR Cr) & Cost of Borrowing Operating Exp. (INR Cr) and Cost to Income 18.2% 18.7% 10.70% 10.73% 10.75% 10.68% 10.61% 52.0% 54.1% 52.7% 56.7% 51.8% 17.7% 17.7% 17.8% 17.3% 16.9% 16.6% 16.7% 16.7% 167 181 123 120 3
Slide 19: Forward-Looking Guidance, Positioning for Sustainable growth
Forward-Looking Guidance, Positioning for Sustainable growth Slide 18
Slide 20: Prime Intermediated: Secured Business loans
Prime Intermediated: Secured Business loans Parameters FY25 exit (Q4FY25) Near term Strategy Disbursement (INR Cr) 299 Planned increase by 15%-20% Productivity (INR Cr p.m./ FOS ) 1.10 Planned increase by 15%-20% Login to disbursement % 33% Expected to continue at similar levels Ticket size (INR Cr)
Slide 21: Prime Intermediated: Business loans
Prime Intermediated: Business loans Parameters FY25 exit (Q4FY25) Near term Strategy Disbursement (INR Cr) 285 Planned reduction by 25%-30% to maintain favorable balance of Secured loans in overall portfolio Productivity (INR Cr p.m./ FOS ) 0.9 Expected to continue at similar levels Login to disburs
Slide 22: Emerging Market: Secured Loans
Emerging Market: Secured Loans Parameters FY25 exit (Q4FY25) Near term Strategy Disbursement (INR Cr) 669 Expected to increase significantly with increase in # of branches Productivity (INR Cr p.m./ branch) 1.1 Expected to continue at similar levels Closing # of branches 212 Expected to increase to
Slide 23: Ecosystem Channel & Green Asset Financing
Ecosystem Channel & Green Asset Financing Parameters FY25 exit (Q4FY25)(1) Near term Strategy Disbursement (INR Cr) 287 Planned increase by 15%-20% Productivity (INR Cr p.m./ FOS ) 0.7 Planned increase by 15%-20% Login to disbursement % 40% Expected to continue at similar levels Ticket size (INR Cr)
Slide 24: Direct & Digital Alliances
Direct & Digital Alliances Parameters (Alliances) FY25 exit (Q4FY25) Near term Strategy Disbursement (INR Cr) 308 Expected to continue at similar levels # of active partners 64 Expected to continue at similar levels Yield %(1) 15.2% Expected to continue at similar levels Tenor (months) 36 Expected t
Slide 25: MSME lending: The largest opportunity today
MSME lending : The largest opportunity today Slide 24
Slide 26: For India's GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion
For India’s GDP to reach USD 5 trillion, MSME sector has to reach USD ~2 trillion Today India’s GDP in FY2028 FY2028 MSME ~6.3 Crore MSMEs 35 – 40% ~8 – 10 Crore MSMEs MSME MSME 35-40% 35-40% ~24 Crore employment ~35-40 Crore employment ~30% of GDP ~30-40% of GDP MSME sector expected to grow to USD
Slide 27: MSME sector is the key to India's Employment Generation
MSME sector is the key to India’s ‘Employment Generation’, making it one of the Central themes of Government in the last decade MSME count to grow to ~10 crores employing 35-40 crores Slide 26
Slide 28: …well supported by continuity in Government initiatives
…well supported by continuity in Government initiatives Government Initiatives throughout the years Financial Support for MSME Growth - 2025 • 2014 - Pradhan Mantri MUDRA Yojana (PMMY) Budget Allocation • For Ministry of MSME: INR 23k Crores • 2015 - Udyog Aadhaar Memorandum (UAM) Revised Classifica
Slide 29: Building a large institution for MSME financing is a real possibility
Building a large institution for MSME financing is a real possibility Explosion of Credit in MSME Segment: Large market opportunity, conducive macro, favorable policy framework Total MSME Credit gap is INR 1,03,000 Bn Credit Gap of our customer segment constitutes majority portion Overall MSME Credi
Slide 30: UGRO Capital: Well-placed to capitalize on the opportunity
UGRO Capital: Well-placed to capitalize on the opportunity MSME Focused Lender targeting Analytics Powered Pan-India Presence large credit gap Targeting MSME sector which has India’s trailblazing data-driven Extensive network pan India, with substantial credit gap of ~INR 103 cashflow based underwri
Slide 31: UGRO's Data & Tech driven approach
UGRO’s Data & Tech driven approach Slide 30
Slide 32: UGRO's journey of Data-Tech driven lending to MSMEs over 5+ yrs
UGRO’s journey of Data-Tech driven lending to MSMEs over 5+ yrs Build phase Early Validations Maturing phase Growth Phase Data Repository- Mar’25 Infrastructure build at inception during Covid, pivoted At Dec 2022, 87% of long term portfolio Become an industry to cash flow based underwriting models
Slide 33: Data driven by AI/ML powers our core underwriting
Data driven by AI/ML powers our core underwriting : Ability to capture alternate data from banking and bureau… …to draw meaningful insights out of unorganized data... Artificial Intelligence GRO 2.0 GRO 3.0 Engineering of making Intelligent Credit Bureau Machines and Programs Credit Across Multiple
Slide 34: GRO Score – Risk Bands Stacking up on Historical Portfolio
GRO Score – Risk Bands Stacking up on Historical Portfolio Default rates across score bands – All customers assessed Since Inception Score Band wise break up of recent disbursals (Oct 24 – Mar 25) 3.0% 4% 9% 1.9% 1.7% 9% A+&A 41% 1.2% B 1.1% GRO Score A+ to C 0.9% 0.8% ~87% C 0.6% D E 37% A+&A B C D
Slide 35: Our System Architecture supports full SME lending
Our System Architecture supports full SME lending Secured Factoring P&M Loans OD product EV / Solar Digital Finance Co-lending Embedded Business Loan Finance GSTN Bureau + Banking Bureau + Banking + GSTN GROSCORE GROSCORE 2.0 3.0 UGRO’S PROPRIETARY TECH CAPABILITY Co-lending Supply Chain D2C Offerin
Slide 36: Multi-product, multi-channel Asset Engine
Multi-product, multi-channel Asset Engine Slide 35
Slide 37: Serving a diverse set of customers with multi-product, multi-channel strategy
Serving a diverse set of customers with multi-product, multi-channel strategy Prime Intermediated: Emerging Market: Tier 2 & Ecosystem Channel & Direct & Digital Alliances Metro & Tier 1/2 Branches beyond branches Green Asset Financing Collateral: Prime Property (For Collateral: Collateral:Standard
Slide 38: Sector Focused Approach, Multiple Products and Large Distribution Strength
Sector Focused Approach, Multiple Products and Large Distribution Strength Emerging Market Retailer 23 Finance Prime Branches Light Engineering Business Loan Secured by Property 212 Auto Components EM Branches Business Chemicals Loan 730+ GRO Partners Our Product Food Processing Offering 10+ Green A
Slide 39: Highest-ever Net Loan Origination (Q-o-Q)
Highest-ever Net Loan Origination (Q-o-Q) Amount in INR Cr Disbursement is up 57% YoY; Disbursement excluding Supply Chain Financing(1) is up 51% YoY 2,436 2,098 1,971 638 335 277 1,554 1,552 291 233 308 1,459 1,477 -98 1,284 261 322 1,146 260 193 209 -61 287 156 456 -50 173 172 167 225 227 -89 196
Slide 40: Strong AUM Growth Trend (Q-o-Q)
Strong AUM Growth Trend (Q-o-Q) Amount in INR Cr AUM increased to INR 12,003 Cr as of Mar’25 from INR 11,067 Cr as of Dec’24 (+8%) and INR 9,047 Cr as of Mar’24 (+33%) 33% 12,003 11,067 743 6% 10,157 302 1,181 10% 1,199 9,047 9,218 1,184 1,577 14% 8,364 1,454 1,112 12% 1,108 7,592 1,360 274 2% 967 3
Slide 41: Well diversified, granular and stable portfolio quality
Well diversified, granular and stable portfolio quality Product Mix (AUM) Portfolio Concentration in key geographical areas Sector Mix 6% State wise AUM 10% 21% coverage 7% 1% 1% 18% 4% 15% 4% 13% 8% 2% 6% 14% 10% 3% 3% 2% 4% 24% 22% 12% Guaranteed by 10% 3% CGTMSE Rest of India < 1% 2% 8% 31% Secur
Slide 42: Shareholding, Board, and Management
Shareholding, Board, and Management Slide 41
Slide 43: Institutionally Owned: Majority held by Institutional Investors
Institutionally Owned: Majority held by Institutional Investors Shareholding Pattern as of Mar’25 Fully diluted shareholding pattern(1) (Investment arm Other Public shareholders, 30.5% 10.5% of Denmark govt.) (Investment arm of Other Public 39k+ shareholders 16.4% shareholders, 26.8% Denmark govt.)
Slide 44: We are Independently supervised by eminent Board of Directors
We are Independently supervised by eminent Board of Directors Non-Executive Chairman Satyananda Mishra Chairman, Corporate Social Responsibility Committee Ex-Chairman- MCX, Ex-CIC, GOI, Ex-Director - SIDBI Independent Directors Karnam Sekar Hemant Bhargava Rajeev K. Agarwal S. Karuppasamy Tabassum I
Slide 45: With strong corporate governance framework enshrined in the Articles
With strong corporate governance framework enshrined in the Articles ▪ Reputed Audit Firm to be appointed as the statutory auditors ▪ High degree of regulatory oversight and transparency ▪ Sharp and Tannan appointed as the statutory auditor ▪ An institution created with a long-term view, designed an
Slide 46: Professionally Managed: Leadership team has 165+ years of cumulative experience
Professionally Managed: Leadership team has 165+ years of cumulative experience Shachindra Nath - Founder & Managing Director 26+ Years of diversified financial services experience across asset management, lending, capital markets & insurance Amit Mande Anuj Pandey Kishore Lodha Chief Revenue Office
Slide 47: Regulatory updates Co-lending
Regulatory updates Co-lending Slide 46
Slide 48: RBI Guidelines on Co-lending (2020 Circular)
RBI Guidelines on Co-lending (2020 Circular) RBI circular dated November 05, 2020 1➢ Loan sanction - Joint contribution of credit by banks and NBFCs 2➢ Interest rate - Blended rate to be offered to customers 3➢ Common Escrow Account: The Bank and the NBFC shall open common escrow account for disburs
Slide 49: Draft RBI (Co-Lending Arrangements) Directions, 2025
Draft RBI (Co-Lending Arrangements) Directions, 2025 RBI issued draft guidelines on Co-lending for comments, broadly includes: • Unified framework for all Co-lending arrangements (CLAs) between • Loans must be shared from the first disbursement; internal audits and Regulated entities (REs) business
Slide 50: Thank you
Thank you www.ugrocapital.com Slide 49