Ugro Capital Ltd announced its Q4 FY25 results, revealing strong growth across key financial metrics. The company has posted impressive figures, particularly in sales and net profit, indicating solid operational performance despite the challenging financial landscape.
Key Highlights
Ugro Capital demonstrated consistent growth in Q4 FY25, with a notable rise in both top-line and bottom-line performance. Below is the detailed breakdown of the company’s financial results:
Financial Performance Breakdown:
Sales: Increased by 25.05% year-on-year to ₹4,031.76 million, compared to ₹3,224.08 million in Q4 FY24. This growth reflects the company’s expanding customer base and an increase in lending activities.
Net Profit (PAT): Rose by 24.04%, reaching ₹405.47 million from ₹326.88 million in the same quarter last year. The growth in profitability highlights Ugro Capital’s efficient cost management and its ability to perform well in a competitive market.
Operating Profit (PBIDT): Marginally improved by 29.73% to ₹2,516.58 million, compared to ₹1,939.87 million in Q4 FY24, showcasing strong operational efficiency.
Interest Expense: Increased by 41.41% to ₹1,812.13 million, up from ₹1,281.44 million last year, reflecting higher finance costs and their pressure on margins.
Depreciation Expense: Rose by 33.72% to ₹132.36 million from ₹98.98 million in Q4 FY24, impacting the overall profitability to some extent.
Profit Before Tax (PBT): Saw a modest increase of 2.26% to ₹572.09 million, up from ₹559.14 million in the previous year, despite the pressure from rising interest and depreciation costs.
Ugro Capital Ltd Q4 FY25 Financial Statement (₹ in Million)
| Particulars | Q4 FY25 (₹ Million) | Q4 FY24 (₹ Million) | % Change |
|---|---|---|---|
| Sales | 4031.76 | 3224.08 | 25.05% |
| Other Income | 92.62 | 79.84 | 16.01% |
| PBIDT | 2516.58 | 1939.87 | 29.73% |
| Interest | 1812.13 | 1281.44 | 41.41% |
| PBDT | 704.45 | 658.43 | 6.99% |
| Depreciation | 132.36 | 98.98 | 33.72% |
| PBT | 572.09 | 559.45 | 2.26% |
| TAX | 166.62 | 232.57 | -28.36% |
| PAT | 405.47 | 326.88 | 24.04% |
Year-to-Date (YTD) Performance: FY25 Overview
For the full fiscal year (FY25), Ugro Capital continued to demonstrate consistent growth, with a 33.20% increase in sales year-on-year, signaling strong business momentum.
Full-Year Financial Highlights:
Sales Growth (FY25): Ugro Capital posted a 33.20% increase in sales for the full fiscal year, continuing its positive growth trajectory.
Profit Growth: The company managed to balance growth and efficiency, delivering stable returns despite the cost pressures seen in Q4.
Profitability and Operational Efficiency
Ugro Capital’s ability to maintain strong operational performance and profitability despite rising costs is a key highlight of its Q4 results. Here’s a detailed look at the company’s efficiency:
Profitability Metrics:
PBIDTM (Profit Before Interest, Depreciation, and Tax Margin): Held steady at 62.42% in Q4 FY25, up slightly from 60.17% in the same period last year, indicating consistent operational efficiency and strong margin management.
Tax Expense: Declined by 28.36%, offering relief to the company’s bottom line and aiding the growth in net profit.
Deferred Tax: Dropped sharply by 71.13%, further contributing to the positive results for the quarter.
Analyst’s View: Consistent Growth Amid Financial Pressures
Ugro Capital’s Q4 FY25 results are a testament to the company’s robust growth strategy, even in a competitive market environment. Key insights from the quarter include:
Strengths:
- Strong sales growth of 25.05% year-on-year.
- A healthy increase in operating profit and net profit.
- Efficient cost control leading to stable margins.
Challenges:
- Rising interest and depreciation expenses putting pressure on profitability.
- Modest increase in PBT, reflecting the impact of higher finance costs.
Investor Insight:
Ugro Capital has shown resilience in a challenging financial environment. The company’s ability to maintain stable margins and improve profitability despite rising costs suggests solid management and a promising outlook, provided it continues to optimize its operational expenses.
The Bottom Line
Ugro Capital’s Q4 FY25 results reflect consistent growth and strong operational performance, despite rising interest expenses and depreciation costs. The company has successfully balanced top-line growth with cost management, and its stable profit margins are a positive sign for the future. Going forward, Ugro Capital’s ability to control rising costs and maintain strong operational efficiency will be key to sustaining its growth momentum.
Disclaimer: This blog is for informational purposes only and should not be considered as financial advice or any buy/sell recommendations.
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