Charging 20% interest rate per se is not bad. If you know, how buy now and pay later schemes and buy on EMI works, you will understand that the companies charge 15-18% interest rates. Here, I am talking about consumer segment. So, the actually problem is over leveraging the consumer, means giving multiple loans with this interest rates to a single person and kind of throwing him in a debt trap. This is exactly what happening in MFI segment.

On the other hand, Ugro not giving any loan to a individual consumer, rather to a enterprise with credit history and GST number. Loan is only given after triangulating several data sources to ensure that the enterprise is not over leveraged, and has the capacity and intention to pay. On the top unlike the consumer loan where the money is used to buy TV and Fridge the credit given to a enterprise is used for generating revenue and using it for productive use.

Ugro being Five-star, I am not buying this idea. Ugro has far healthy and scalable business model.

Disc. Invested

Q2 FY25 concall

1. Q3 guidance at 1000cr (750 cr from parent company, 150 cr from subsidiaries), for Full FY25 guidance stand at 3300 cr ( 2700 cr from parent and 600 cr from subsidiaries), Guidance for FY27 stand at 6300 cr (5000 cr from parent company, 1300 cr from subsidiaries)
2. export at 9% of total sales(around 63.9 cr), while targeting 15% -20% in the near future focusing on markets in Malaysia, Singapore, and the Middle East.
3. Other income was due to the sale of HDFC and TCS shares. Next quarter will also have some as the company will sell its SBI shares ( then the company will have no shares left in the balance sheet).
4. gold metal loans were at 10% in Q1, now at 25% in Q2, and in Q3 target at 50-60% and in the future target at 80% which is the peak that is allowed, this will take pat margin from 3 to 3.5% in future( by reduce in interest cost due utilization of gold metal loans)
5. currently running at 46% capacity utilization(standalone) , 30-33% in subsidiaries(which will ramp In upcoming quarter)
6. Focus remains on B2B, not have plans to open retail shops
7. subsidiaries EBITDA margin at 4%, Q3 will have 5 – 5.5%, as some QIP fund is allocated in subsidiaries
8. Inventory is totally hedged on MCX, we don’t gain when gold prices go up but we don’t lose if goal prices go down
9. In the March quarter, planning to launch lab-grown diamond products.
10. Seen clients were order on a day-to-day basis, So In the December quarter, an app will go live for clients where they can see products and order on a day-to-day basis