Fusion Finance (FUSION) Q1 24/25 earnings summary

Executive summary

• Disbursements in Q1 FY25 were ₹2,987 crore, with AUM reaching ₹12,193 crore, up 5% QoQ; active borrower count rose 8.44% YoY to 3.95 million.

• 101 new branches opened, expanding the network to 1,398 branches across 22 states and 470 districts.

• Profitability was impacted by early risk recognition and conservative provisioning, resulting in a net loss of ₹35.62 crore for Q1 FY25.

• Ticket size grew 9.5% YoY, with one of the lowest outstanding per customer in the sector.

• Marginal cost of funds reduced to 10.05% (down 19 bps QoQ); CRAR remained strong at 25.86%.

Financial highlights

• Total income for Q1 FY25 was ₹706.68 crore, up 27.84% YoY and 4.67% QoQ; interest income up 29.7% YoY to ₹621.28 crore.

• Net interest income increased 34.85% YoY to ₹396.55 crore; NIM improved to 11.64%, up 75 bps YoY.

• Pre-provision operating profit was ₹297.75 crore, up 26.49% YoY and 2.43% QoQ.

• Gross NPA at 5.46%, Net NPA at 1.25%; provision coverage at 78.14%.

• Cost to income ratio at 38.39% in Q1 FY25, up 213 bps YoY.

Outlook and guidance

• Management expects normalization of profitability and credit costs from H2 FY25 as risk management measures take effect.

• No specific credit cost guidance provided due to dynamic conditions; will reassess after Q2.

• Focus remains on prudent growth and robust balance sheet fundamentals.