Fusion Micro Finance Limited – Q3 FY23 results

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Q3 FY23 earnings _ Fusion Micro Finance Limited

Delhi, 14 February 2023: Fusion Micro Finance Limited [BSE (BOM: 543652) and NSE (NSE: FUSION)], India’ssecond largest NBFC-MFI, today announced its unaudited and limited reviewed financial performance for the third quarter of the financial year 2022-23. The company continues to demonstrate robust growth and strong operating metrics posting its highest profit since inception.

Business Highlights: Q3 FY23
• Asset under Management (AUM) grew 44.51% YoY from INR 59,882.18 million to INR 86,535.56 million

• Disbursements grew 22.16% YoY to INR 21,882.78 million

• Net NPA 0.98%

• Borrower base increased to 3.4 million in Q3, up from 3.2 million in Q2

• 26 branches added in Q3, up from 1,031 branches in Q2 across 20 States, including 2 Union Territories

Financial Highlights: Q3 FY23

• Total income increased 57.22% YoY from INR 2,967.23 million to INR 4,665.03 million

• Net interest income (NII) increased 57.79% YoY from INR 1,569.90 million to INR 2,447.19 million

• Pre-provision operating profit (PPOP) increased 91.77% YoY from INR 958.33 million to INR 1,837.78 million

• Impairment of financial instruments declined 47.87% YoY from INR 957.82 million to INR 499.28 million

  • Total Expected Credit Loss (ECL) is INR 2,894.37 million (3.69%) (includes management overlay of INR252.5 million) against GNPA of INR 2,894.37 million (3.69%) and NNPA further reduced to 0.98% from 1.12% in QoQ
  •  Write-offs were INR 450.42 million

• Profit After Tax (PAT) increased YoY from INR 9.37 million to INR 1,024.62 million

• Healthy capital position with CRAR of 28.15%.

• Robust liquidity of INR 11,031.82 million as cash & cash equivalents, amounting to 12.24% of the total assets

Highlights – Q3 FY23
• Fusion Micro Finance won “Microfinance Organization of the Year Award in the Large category” atInclusiveFinance India Awards 2022, a joint initiative of ACCESS Development Services and NITI Aayog. The award was presented by Dr. V. Anantha Nageswaran, Chief Economic Advisor, Government of India to Mr.Devesh Sachdev, MD & CEO, Fusion Micro Finance for exceptional performance in the field of providing microfinance.

Commenting on the performance, Devesh Sachdev, Managing Director and CEO, of Fusion Micro Finance Ltd. said, “We have posted strong numbers in this quarter as well, wherein our Profit After Tax (PAT) increased YoYfrom INR 9.37 million to INR 1,024.62 million, delivering the highest quarterly PAT till date. Our Asset under management (AUM) grew 44.51% YoY from INR 59,882.18 million to INR 86,535.56 million and our borrower base grew to 3.4 million in Q3 FY23 from 3.2 million in Q2 FY23, across our well-diversified network of 1,057branches in 20 states including 2 Union Territories.“We expect to close FY23 on a strong note. The recent Budgetary allocations for rural India will further create more opportunities at the bottom of the pyramid thus enabling us to keep on growing consistently.” he added.