Q4 2024 Ugro Capital Ltd Earnings Call Transcript
Key Points
- Ugro Capital Ltd (BOM:511742) achieved a significant year-on-year growth in AUM, reaching 9,050 crore in FY24 from 6,000 crore in FY23.
- The company successfully raised 1,332 crore in capital, ensuring sufficient funds for growth over the next two years.
- Pre-tax profit saw a substantial increase, jumping from 84 crore to 179 crore, a 113% year-on-year growth.
- The company's cost-to-income ratio improved from 62% to 54%, indicating better operational efficiency.
- Ugro Capital Ltd (BOM:511742) made a strategic acquisition of MyShubLive, enhancing its capabilities in embedded financing and expanding its customer base.
- The company's on-book NPA is relatively high at 3.5%, compared to the total book NPA of 2%, indicating potential risk in its on-book portfolio.
- There was a notable increase in credit costs in Q4, with a one-off write-off of 10 crore, impacting overall profitability.
- The company's reliance on intermediated channels (DSAs) remains significant, which could lead to higher customer acquisition costs and potential foreclosures.
- Despite the capital raise, there are concerns about the immediate dilution impact on existing shareholders and the potential undervaluation of the company's shares.
- The company's ambitious growth targets and expansion plans may face challenges due to macroeconomic factors and regulatory changes, impacting profitability and operational efficiency.
Yeah, ladies and gentlemen, good day. On behalf of MK Global, I welcome you all to you grow capital quarter for FY 24. Morning call. We have with us today, Mr. Shachindra Nath, Founder and Managing Director; Mr. Anuj Pandey, Chief Risk Officer; Mr. Amit Mande, Chief Revenue Officer; Mr. Kishore Lodha, Chief Financial Officer; and Mr. Sharad Agrawal, Chief Operating Officer.
Before we proceed, as a standard disclaimer, no unpublished price sensitive information will be shared during the conference call. Only publicly available documents will be referred to for discussion during this interaction. In case of any inadvertent disclosure, the same would in any case form part of the call of the recording of the call.
Without much ado, I would like to invite Mr. Sachin to share his thoughts on the company's performance and discuss that capital raise and the latest acquisition. Over to you, sir.
Thank you. Good evening, everyone. This is actually not just a year and
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