UGRO CAPITAL 2023-24 Annual Report Analysis

Tue, 23 Jul

UGRO CAPITAL has announced its results for the year ended March 2024. Let us have a look at the detailed performance review of the company during the year 2023-24.

UGRO CAPITAL Income Statement Analysis

• Interest income during the year rose 59.6% on a year-on-year (YoY) basis.
• Interest expenses were up by 51.0% YoY during the same period.
• Operating expenses increased by 46.9% YoY during the year.
• The company's net interest income (NII) increased by 66.6% YoY during the fiscal. Consequently, net interest margins (NIM) witnessed a growth and stood at 10.8% in FY24 as against 9.2% in FY23.
• Other income increased by 23.5% YoY during the year.
• Net profit for the year increased by 200.0% YoY.
• Net profit margins during the year increased to 11.4% in FY24 from 6.1% in FY23.

UGRO CAPITAL Income Statement – 2023-24

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Interest Income	Rs m	6,565	10,480	59.6%
Other Income	Rs m	273	337	23.5%
Interest Expense	Rs m	2,933	4,429	51.0%
Net Interest Income	Rs m	3,632	6,050	66.6%
Operating Expense	Rs m	2,890	4,247	46.9%
Pre-provision Operating Profit	Rs m	1,015	2,141	111.0%
Provisions & Contingencies	Rs m	7,959	10,862	36.5%
Profit before tax	Rs m	838	1,788	113.2%
Tax	Rs m	441	594	34.9%
Profit after tax	Rs m	398	1,193	200.0%
Minority Interest	Rs m	0	0	0.0%
Net Interest Margin	%	9.2	10.8
Net profit margin	%	6.1	11.4

Don't Miss: Key Information for Long-term Investors

UGRO CAPITAL Balance Sheet Analysis

• The company's deposits during FY24 stood at Rs 0 m as compared to Rs 0 m in FY23, thereby witnessing an increase of 0.0%.
• Advances for the year stood at Rs 54.3 bn as compared to Rs 38.1 bn during FY23, a rise of 42.7%.
• Cost of deposits for UGRO CAPITAL rose 0.0% and stood at 0.0%, while yield on advances rose to 0.0%.
• The lender's investments rose to Rs 1.6 bn during the year from Rs 1.4 bn in FY23.
• Borrowing stood at Rs 640 m, a growth of 42.4% as compared to previous year.
• Overall, the total assets and liabilities for FY24 stood at Rs 63.1 bn as against Rs 42.9 bn during FY23, thereby witnessing a rise of 47.1%.

UGRO CAPITAL Balance Sheet – as on March 2024

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*	% Change
Networth	Rs m	9,792	14,312	46.2%
Advances	Rs m	38,064	54,322	42.7%
Deposits	Rs m	0	0	0.0%
Yield on advances	%	0.0	0.0
Cost of Deposits	%	0.0	0.0
Investments	Rs m	1,388	1,559	12.3%
Borrowings	Rs m	449	640	42.4%
Total Assets	Rs m	42,880	63,059	47.1%

Current Valuations for UGRO CAPITAL

• The trailing twelve-month earnings per share (EPS) of the company stands at Rs 13.0, an improvement from the EPS of Rs 5.7 recorded last year.
• The price to earnings (P/E) ratio, at the current price of Rs 258.9, stands at 17.9 times its trailing twelve months earnings.
• The price to adjusted book value (P/ABV) ratio at current price levels stands at 1.7 times, while the price to income ratio stands at 2.0 times.

Per Share Data/Valuations

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Income per share (Unadj.)	Rs	94.7	114.4
Earnings per share (Unadj.)	Rs	5.7	13.0
Diluted earnings per share	Rs	4.3	12.8
Avg P/E ratio	Rs	29.8	17.9
Avg P/ABV ratio	Rs	2.5	1.7
Avg Market Cap	Rs	11,868	21,341
Dividends per share (Unadj.)	Rs	0.00	0.00

Ratio Analysis for UGRO CAPITAL

• Efficiency Ratios

  Credit/Deposit Ratio: The company's credit/deposit ratio improved and stood at 5,432,210.3x during FY24, from 3,806,362.1x during FY23. The credit/deposit ratio tells us how much money a company has raised in the form of deposits and has deployed as loans.

  Debt to Equity Ratio: The company's debt to equity ratio decreased and stood at 0.04x during FY24, from 0.05x during FY23. The debt to equity ratio of a company tells us how much debt a company uses relative to its equity.

• Liquidity Ratios

  Capital Adequacy Ratio (CAR): UGRO CAPITAL's capital adequacy ratio (CAR) was at 20.8% as on 31 March 2024 as compared to 20.2% a year ago. This ratio helps measure the financial strength of the company or any finance company to meet their obligations using their assets and capital.

  A company that has a good CAR has enough capital to absorb potential losses. Thus, it has less risk of becoming insolvent and losing depositor's money.

  Provision Coverage Ratio (PCR): Apart from CAR, you also need to take a look at the company's PCR and LCR ratios. Provisioning coverage ratio (PCR) is the percentage of funds that a company sets aside for covering losses due to bad debts.

  So a high PCR ratio means asset quality issues are under control and the company is not vulnerable.

  Liquidity Coverage Ratio (LCR): The LCR is designed to ensure that companies hold a sufficient reserve of high-quality liquid assets to allow them to survive a period of significant liquidity stress lasting 30 calendar days.

• Profitability Ratios

  Return on Equity (ROE): The return on equity (ROE) ratio for the company improved and stood at 8.3% during FY24, from 4.1% during FY23. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

  Return on Assets (ROA): The return on asset (ROA) ratio of the company improved and stood at 1.89% during FY24, from 0.93% during FY23. The ROA measures how efficiently the company uses its assets to generate earnings.

  Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 12.16% during FY24, from 10.93% during FY23. The ROCE measures the ability of a company to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

• NPA Ratios

  Gross NPA Ratio: The gross NPA ratio is the ratio of a company's gross NPAs to gross advances. UGRO CAPITAL's gross NPA ratio stood at 0.0% as of 31 March 2024 compared to 2.5% in the same period a year ago.

  A high gross NPA ratio is a bad thing as it indicates how much of a company's loans are in danger of not being repaid.

  Net NPA Ratio: In simple language, net NPAs are simply the total non-performing assets minus the provision left aside. It gives you the exact value of NPAs after the company has made provisions.

  The net NPA ratio of UGRO CAPITAL was 1.6% in financial year 2024. This compared with 1.3% a year ago.

Key Ratio Analysis

No. of Mths Year Ending		12 Mar-23*	12 Mar-24*
Credit/Deposit Ratio	x	3,806,362.1	5,432,210.3
Debt to Equity Ratio	x	0.0	0.0
Loans / Deposits	x	0.0	0.0
Capital Adequacy Ratio	%	20.2	20.8
Return on Equity	%	4.1	8.3
Return on Assets	%	0.9	1.9
Return on Capital Employed	%	10.9	12.2
% of Gross NPAs	%	2.5	0.0
% of Net NPAs	%	1.3	1.6
Yield on Advances	x	0.0	0.0
Yield on Investments	x	0.0	0.0

To see how UGRO CAPITAL has performed over the last 5 years, please visit here.

UGRO CAPITAL Share Price Performance

Over the last one year, UGRO CAPITAL share price has moved up from Rs 258.9 to Rs 258.9, registering a gain of Rs 0.0 or around 0.0%.

Overall, the S&P BSE SENSEX is up 19.7% over the year.

(To know more, you can check out historical annual results for UGRO CAPITAL here and quarterly results for UGRO CAPITAL here)