Fusion Finance (FUSION) Q4 15/16 earnings summary

Executive summary

• FY16 revenue rose 72.4% YoY to ₹123.20 crore and PAT increased 36.7% to ₹11.21 crore; branch network, borrowers and gross loan portfolio expanded substantially.

• Growth was supported by wider funding access and lower borrowing costs, alongside expansion into new geographies; management expected improved performance in FY17.

Financial highlights

• Revenue ₹123.20 crore, up 72.4% YoY; total expenditure ₹106.71 crore, up 79.7%; PBT ₹16.48 crore, up 36.7%.

• PAT ₹11.21 crore versus ₹8.20 crore in FY15; basic and diluted EPS ₹2.52 versus ₹2.14, up 17.76%.

• Revenue from operations was ₹122.96 crore; interest income on loan portfolio was ₹85.18 crore and business correspondent income was ₹16.94 crore.

• Total assets were ₹684.92 crore at March 31, 2016, versus ₹452.98 crore a year earlier; net worth was ₹67.21 crore.

Outlook and guidance

• Plans included continued branch and employee growth and expansion into new territories; management was hopeful of stronger performance in the current year.

• Potential support included clearer regulation, government financial-inclusion initiatives and possible bank rate cuts that could lower borrowing costs; no numerical forecast was stated.