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(23 May 2023, 11:27)

Fusion Micro Finance rises after Q4 PAT soars to Rs 114 cr

Fusion Micro Finance rallied 2.70% to Rs 492.85 after the company reported net profit of Rs 114.52 crore in Q4 FY23, steeply higher from Rs 13.19 crore in Q4 FY22.


Total income jumped 39.76% to Rs 520.69 crore in Q4 FY23 as compared with Rs 372.55 crore in Q4 FY22.

Pre-provision operating profit (PPOP) jumped 47.77% YoY to Rs 221.12 crore while net interest income (NII) increased 62.37% YoY to Rs 273.75 crore during the quarter. Net interest margin (NIM) stood at 10.57% in Q4 FY23 as compared to 7.78% in Q4 FY22.

During the quarter, asset under management (AUM) grew 36.99% YoY to Rs 9,296.21 crore and disbursements grew 18% YoY to Rs 2,373 crore.

Gross non-performing assets (GNPA) ratio stood at Rs 288.89 crore, GNPA ratio declined to 3.46% in Q4 FY23 from 5.71% in Q4 FY22. Net non-performing assets (NNPA) ratio reduced to 0.87% in Q2 FY23 from 0.98% in Q3 FY23.

On full year basis, the company reported net profit of Rs 387.14 crore in Q4 FY23, steeply higher from Rs 21.75 crore posted in corresponding quarter last year.

Disbursements grew 39.10% YoY from Rs 6,179.77 crore to Rs 8,596.11 million in FY23.

During the year, approximately 0.8 million new clients were added.

Devesh Sachdev, managing director and chief executive officer (CEO), Fusion Micro Finance, said, “FY23 has been a milestone year for the Company as we successfully got listed and have demonstrated strong performance consistently across all operational and financial metrics. Our AUM has grown by 36.99% YoY to Rs 9,296.21 crore.

We reached a base of 0.35 crore borrowers and clocked the highest PAT since inception resulting in ROA of 4.65% and ROE of 21.16 %. We have achieved these results due to our focused strategy of geographical diversification, building an extensive network, investing in human capital, technology, sound risk management and building for the future.”

Fusion Micro Finance is a second largest microfinance non-banking finance company (NBFC) in terms of gross loan portfolio (GLP) providing financial services to unserved and underserved women in rural and peri-rural areas across India. The company provides small value collateral free loans. Apart from micro finance lending, the NBFC also have insignificant lending to MSME enterprises.

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