Fusion Micro Finance Limited – Financial Results for Q4 FY23
Fusion Micro Finance Limited – Financial Results for Q4 FY23 and year ending March 31, 2023 Profit After Tax (PAT) grew 1679.57% YoY to INR 3,871.45 million
Asset under Management (AUM) grew 36.99% YoY to INR 92,962.19 million Pre-provision Operating Profit (PPOP) grew 81.21% YoY to INR 7,123.53 million ROA of 4.65% and ROE of 21.16%
Delhi, 23 May 2023: Fusion Micro Finance Limited [BSE (BOM: 543652) and NSE (NSE: FUSION)], today announced its audited financial performance for the fourth quarter and financial year ending 31st March 2023. The company demonstrated strong results year on year and closed with highest profit since its inception.
Highlights: FY 2023
- Disbursements grew 10% YoY from INR 61,797.77 million to INR 85,961.13 million
- Borrower base increased to 3.53 million across 1086 branches
- Addition of ~ 8 Million new clients during the year
- Cost of Funds reduced by 13 bps
- Net NPA dropped to 87% from 1.64%
Highlights: Q4 FY23
- Total income increased 76% YoY from INR 3,725.55 million to INR 5,206.92 million
- Net interest income (NII) increased 37% YoY from INR 1,685.95 million to INR 2,737.55 million
- Pre-provision operating profit (PPOP) increased 77% YoY from INR 1,496.37 million to INR 2,211.23 million
- Impairment of financial instruments declined 36% YoY from INR 1,340.02 million to INR 691.96 million
- Total Expected Credit Loss (ECL) is INR 3,126.62 million (3.74%) (includes management overlay of INR 512.50 million) against GNPA of INR 2,888.99 million (3.46%) and NNPA further reduced from 0.98% to 87% QoQ
o Write-offs were INR 457.80 million
- Profit After Tax (PAT) increased by 93% YoY from INR 131.95 million to INR 1,145.24 million
- Healthy capital position with CRAR of 94%
- Credit Rating remains at “A” Stable by CRISIL, CARE and ICRA
Key Developments: Q4 FY23
- Fusion Micro Finance won “Best Data Analytics Initiative of the Year” at the 2nd Annual NBFC & Fintech Excellence Awards 2023, hosted by Quantic and presented by Fusion won this accolade owing to innovative technological advancements which led to enhanced customer experience, increase in revenue, profitability, and efficient risk management.
Financial Snapshot: Q4 FY 2022-23 (INR in millions unless otherwise stated)
| Particulars | FY23 | FY22 | YoY% | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% |
| Interest Income | 16,001.03 | 10,643.19 | 50.34% | 4,507.39 | 3,071.87 | 46.73% | 4,202.45 | 7.26% |
| Total Income | 17,999.70 | 12,013.49 | 49.83% | 5,206.92 | 3,725.55 | 39.76% | 4,665.03 | 11.62% |
| Finance Cost | 6,427.77 | 4,959.64 | 29.60% | 1,742.36 | 1,365.54 | 27.59% | 1,680.21 | 3.70% |
| Profit Before Tax | 5,119.84 | 244.26 | 1996.06% | 1,519.27 | 156.35 | 871.71% | 1,338.50 | 13.51% |
| Profit After Tax | 3,871.45 | 217.55 | 1679.57% | 1,145.24 | 131.95 | 767.93% | 1,024.62 | 11.77% |
| EPS (Basic) (INR) | 43.29 | 2.67 | 12.81 | 1.59 | 11.14 | |||
| EPS (Diluted) (INR) | 43.13 | 2.64 | 12.76 | 1.58 | 11.10 |
Key Metrics: Q4 FY 2022-23 (INR in millions unless otherwise stated)
| Particulars | FY23 | FY22 | YoY% | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% |
| AUM | 92,962.19 | 67,859.71 | 36.99% | 92,962.19 | 67,859.71 | 36.99% | 86,535.56 | 7.43% |
| Borrowers | 3.53 | 2.72 | 29.78% | 3.53 | 2.72 | 29.78% | 3.40 | 3.82% |
| Branches | 1086 | 934 | 16.27% | 1086 | 934 | 16.27% | 1057 | 2.74% |
| Particulars | FY23 | FY22 | YoY% | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% |
| Net Interest Income (NII) | 9,472.11 | 5,606.67 | 68.94% | 2,737.55 | 1,685.95 | 62.37% | 2,477.19 | 10.51% |
| Pre-Provision Operating Profit
(PPOP) |
7,123.53 | 3,931.19 | 81.21% | 2,211.23 | 1,496.37 | 47.77% | 1,837.78 | 20.32% |
| Profit After Tax (PAT) | 3,871.45 | 217.55 | 1679.57% | 1,145.24 | 131.95 | 767.93% | 1,024.62 | 11.77% |
| Key Ratios | FY23 | FY22 | YoY% | Q4 FY23 | Q4 FY22 | YoY% | Q3 FY23 | QoQ% |
| Net Interest Margin (NIM) | 10.15% | 8.39% | 20.98% | 10.57% | 7.78% | 35.86% | 10.31% | 2.52% |
| Cost/Income Ratio | 38.44% | 44.27% | -13.17% | 36.18% | 36.59% | -1.12% | 38.43% | -5.85% |
| Opex/Average AUM | 5.53% | 5.47% | 1.10% | 5.59% | 5.41% | 3.33% | 5.49% | 1.82% |
| Gross NPA | 3.46% | 5.71% | -39.40% | 3.46% | 5.71% | -39.40% | 3.69% | -6.23% |
| Expected Credit Loss (ECL) | 3,126.62 | 3,603.50 | -13.23% | 3,126.62 | 3,603.50 | -13.23% | 2894.37 | 8.02% |
| Return on Assets (ROA) (Annualised) | 4.65% | 0.33% | 1309.09% | 4.99% | 0.75% | 565.33% | 4.74% | 5.27% |
| Return on equity (ROE) (Annualised) | 21.16% | 1.68% | 1159.52% | 20.24% | 3.97% | 409.82% | 22.04% | -8.17% |
Commenting on the performance, Devesh Sachdev, Managing Director and CEO, Fusion Micro Finance Ltd. 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 INR 92,962.19 million. We reached a base of 3.53 million 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. We are well-positioned to achieve robust and sustainable long-term growth.” he added.
