U GRO Capital, a BSE listed, technology focused platform, announced its Q2 FY21 financial results and posted a PAT of INR 17.2 Cr. This has been achieved while maintaining a consistently conservative approach to provisioning, with INR 3.93 crores of provisioning expenses in Q2. Despite the adverse economic and business conditions brought about by COVID-19, U GRO Capital has declared profits in both Q1 and Q2 of FY21.
The Company is, at this juncture, focused on achieving maximal growth, particularly in the microenterprises segment, while protecting its balance sheet and preserving its strong liquidity position. Given its healthy capital adequacy, low gross NPA and net NPA, diversified portfolio mix, granular geographical distribution and strong risk metrics, the Company is confident in achieving its growth goals while maintaining its conservative approach.
Commenting 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 in 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 in spite of 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.”
