NBFC UY Fincorp's profit up multi-fold in Q2 on higher income

Non-Banking Financial Company (NBFC) UY Fincorp has reported a multi-fold jump in its quarterly net profit in the second quarter on account of higher income. The company said that it clocked a net profit of Rs 51.17 crore in the July to September quarter. This represents an increase of 1,577 per cent from Rs 3.05 crore reported in the same quarter of the previous fiscal.

Likewise, the company's net sales in the September quarter rose by 90 per cent to Rs 29.10 crore on a year-on-year basis. The company said that it had clocked net sales of Rs 15.28 crore in the September quarter last year.

The company's earnings before interest, taxes, depreciation and amortization (EBITDA) in the quarter stood at Rs 69.02 crore, up 1604 per cent from Rs 4.05 crore reported in the same quarter of last year. EBITDA is a measurement of core corporate profitability.

UY Fincorp shares on Wednesday closed at 25.85 on BSE. The stock has given 48 per cent returns over the last 6 months and 111 per cent in 2023.

Notably, the Indian economy is undergoing a healthy rebound from the COVID-19 pandemic and non-banking financial companies (NBFCs) are playing a pivotal role in propelling the growth. 
NBFCs serve as vital sources of funds for investments and infrastructure projects, especially for small and medium enterprises, thus contributing significantly to the overall growth.

Even in the face of an economic upswing and continuous foreign investments, Indian NBFCs have stood their ground, proving their mettle. Driven by a stepped-up approach to adopting digital technologies post-pandemic, the financial services sector is undergoing a significant transformation.