Fusion Finance (FUSION) Q4 14/15 earnings summary

Executive summary

• FY14/15 revenue from operations rose 120.09% YoY to ₹54.88 crore; profit after tax increased 76.45% to ₹5.31 crore.

• Growth accompanied expansion to 211,704 active members, 62 branches and five states; portfolio quality and collection performance remained strong.

Financial highlights

• Total income was ₹54.94 crore versus ₹24.96 crore in FY13/14; profit before tax was ₹7.97 crore versus ₹4.43 crore.

• Profit after tax was ₹5.31 crore versus ₹3.01 crore; basic EPS was ₹3.91 versus ₹2.81 and diluted EPS ₹3.20 versus ₹1.97.

• Disbursements increased 84.07% to ₹308.33 crore; outstanding portfolio reached ₹278.82 crore, up 102.35% YoY.

• Employee benefits expense rose to ₹11.84 crore from ₹6.71 crore, while finance costs increased to ₹27.73 crore from ₹9.81 crore.

Outlook and guidance

• FY15/16 plans included 70 additional branches and extension of the document management solution to 40 branches.

• Growth strategy centers on deeper penetration in existing markets and entry into additional states; Bihar, Jharkhand and Haryana were identified for expansion.

• Bank funding share rose from 41% at March 31, 2014 to 46% at March 31, 2015; operating expense ratio declined from 10.33% to 8.82%.