Fusion Finance (FUSION) Q4 17/18 earnings summary

Executive summary

• FY 2017-18 disbursements rose 101.07% YoY and revenue increased 32.96%, while net profit shifted to a ₹39.41 crore loss amid elevated credit costs and portfolio write-offs.

• Expanded to 14 states and 359 branches, serving 973,300 customers; AUM reached ₹1,555.60 crore and gross loan portfolio ₹1,492.76 crore.

Financial highlights

• Revenue was ₹267.31 crore versus ₹201.04 crore in FY17; revenue from operations was ₹254.52 crore and other income ₹12.79 crore.

• Net loss was ₹39.41 crore versus net profit of ₹4.10 crore; loss before tax was ₹53.60 crore, with a ₹14.19 crore deferred tax benefit.

• EBITDA was ₹85.04 crore versus ₹103.86 crore in FY17; total disbursements reached ₹1,670.58 crore, up 101.07% YoY.

• Total income was ₹267.31 crore and total expenses ₹320.92 crore; provisions and other operating costs weighed on earnings.

Outlook and guidance

• FY19 plans included entering three additional states, expanding technology-led services, and growing disbursements by more than 100% YoY.

• Cashless disbursement share was targeted to rise from 55% to 75%; cashless collections were planned for rollout across operating sites.

• Funding plans called for sourcing more than ₹2,500 crore through a prudent debt-equity mix, with a greater share of long-term loans.

• FY19 priorities included client connectivity, automation, data analytics, learning and development, and further technology deployment.