Fusion Finance (FUSION) Q4 16/17 earnings summary

Executive summary

• FY 2016-17 expanded operations to 12 states and 249 branches; active borrowers reached 682,400, up 57.06% YoY.

• Revenue rose to ₹201.04 crore from ₹110.34 crore, while PAT fell to ₹4.10 crore from ₹13.42 crore, reflecting higher provisions and financing costs.

Financial highlights

• Revenue from operations was ₹184.90 crore vs ₹107.98 crore; total revenue was ₹201.04 crore vs ₹110.34 crore.

• PBT was ₹4.82 crore vs ₹22.29 crore; PAT was ₹4.10 crore vs ₹13.42 crore.

• Other income increased to ₹16.14 crore from ₹2.36 crore, including ₹16.07 crore profit on sale of mutual fund units.

• Finance costs rose to ₹97.44 crore from ₹48.15 crore; operating expenses were ₹34.95 crore, including ₹23.13 crore of demonetisation-related provisioning.

• Disbursements were ₹830.84 crore vs ₹601.53 crore; gross loan portfolio reached ₹771.16 crore vs ₹591.20 crore.

Outlook and guidance

• FY 2017-18 priorities include expansion into new geographies, cashless collections, faster disbursement processing and additional digital branches.

• Management set challenging goals for the coming fiscal and expects technology-led service improvements to support profitable, sustainable growth.

• Lending rates were reduced from 25.50% to 24.50% for existing borrowers and from 25.75% to 25.00% for new borrowers.