Fusion Finance (FUSION) Q4 18/19 earnings summary

Executive summary

• FY19 marked a return to profitability, with net profit of ₹65.35 crore versus a ₹39.41 crore loss in FY18; growth accompanied rapid expansion in lending, customers and branches.

• Active customers reached 1.51 million, with 504 branches across 18 states and disbursements of ₹2,782.13 crore.

Financial highlights

• Revenue from operations rose 91.4% YoY to ₹486.26 crore; total income was ₹511.65 crore versus ₹267.31 crore in FY18.

• Net profit was ₹65.35 crore versus a ₹39.41 crore net loss in FY18; FY18 loss reflected provisioning following demonetisation.

• Disbursements increased 66.54% to ₹2,782.13 crore; AUM reached ₹2,641.39 crore at March 31, 2019, up 74% YoY.

• Total expenses rose to ₹423.42 crore from ₹320.92 crore; finance costs increased to ₹244.21 crore from ₹136.60 crore.

Outlook and guidance

• FY20 priorities: deepen existing markets, establish new-state operations, improve processes through technology and lean methods, strengthen fundraising and customer engagement, and develop complementary products.

• Management cited the expanded footprint, liquidity at year-end, operational accuracy and customer trust as supports for further growth.

• mShakti adoption, analytics, digital customer education and new products aligned with core lending capabilities are planned focus areas.