Fusion Finance (FUSION) Q4 21/22 earnings summary

Executive summary

• FY22 expanded reach across 18 states and 368 districts: 934 branches, 2.72mn active borrowers and ₹6,785.97 crore AUM; disbursements rose 67% YoY.

• Growth continued through the second Covid wave, while profitability weakened as impairment charges increased and net profit declined.

Financial highlights

• Revenue from operations was ₹11,512.65mn vs ₹8,558.12mn; total income was ₹12,013.49mn vs ₹8,730.88mn in FY21.

• Net profit fell to ₹217.55mn from ₹439.44mn; basic EPS was ₹2.67 vs ₹5.56 and diluted EPS ₹2.64 vs ₹5.49.

• Finance costs increased to ₹4,959.64mn from ₹3,751.04mn; impairment on financial instruments rose to ₹3,686.93mn from ₹2,207.80mn.

• Disbursements were ₹6,179.78 crore, up 66.57%; gross loan portfolio reached ₹6,278.54 crore, up 46.31% YoY.

• Reported income included ₹607.95mn gain on derecognition of assigned assets and ₹247.65mn fair-value gain on mutual fund sales.

Outlook and guidance

• FY23 outlook was positive, supported by stronger Q3–Q4 FY22 disbursements, rural credit demand and improving collection efficiency from September 2021.

• RBI’s March 2022 framework was expected to widen customer eligibility and allow risk-based pricing, supporting coverage and sector growth.

• Planned priorities include investments in technology, capabilities, branches and people, alongside productivity and cost optimization to support profitable growth.