Fusion Finance (FUSION) Q4 19/20 earnings summary

Executive summary

• FY20 closed with 1,856,372 active customers, 591 branches across 18 states and 2 Union Territories, and AUM of ₹3,606.52 crore as of March 31, 2020.

• Digital processing reached 100% of loan applications by March 31, 2020; cashless disbursements rose to 59.26% from 48.12% a year earlier.

• Customer growth and profitability advanced despite sector funding pressures and disruptions from COVID-19 near year-end.

Financial highlights

• Revenue from operations was ₹7,202.64 million vs ₹4,943.14 million; total income was ₹7,303.11 million vs ₹4,970.53 million in FY19.

• Profit for the year was ₹696.10 million vs ₹506.69 million; basic EPS was ₹10.55 vs ₹10.59, with FY19 comparative figures restated under Ind AS.

• Net profit growth was reported at 37.98% YoY; total income growth was 46.93% YoY.

• Impairment expense rose to ₹926.99 million from ₹206.75 million; finance costs increased to ₹3,376.72 million from ₹2,539.89 million.

• Total assets reached ₹42,399.94 million vs ₹36,105.21 million; net loans were ₹33,429.73 million vs ₹25,720.36 million.

Outlook and guidance

• FY21 priorities included protecting the existing portfolio after lockdown and assessing the pandemic’s near- to medium-term effects on collections and growth.

• Planned digital initiatives included Audit 360, real-time analytics, automation, machine learning and early-delinquency signals.

• Moratorium was offered to eligible borrowers for instalments falling due through August 31, 2020; continued operations and financial metrics remained dependent on uncertain economic recovery.