Fusion Micro Finance Q2 PAT soars to RS 95 cr

29 Nov 2022 , 12:28 PM

Total income surged 69.34% year on year to Rs 452.33 crore in the quarter ended 30 September 2022. Profit before tax zoomed to Rs 126.08 crore in Q2 FY23 as compared to Rs 3.32 crore recorded in Q2 FY22. Pre-provision operating profit (PPOP) jumped 156.34% YoY to Rs 187.26 crore while net interest income (NII) increased 118.20% YoY to Rs 241.07 crore during the quarter. Net interest margin (NIM) stood at 10.21% in Q2 FY23 as compared to 8.78% in Q2 FY22. During the quarter, asset under management (AUM) grew 54.46% YoY to Rs 8,047.18 crore and disbursements grew 27.42% YoY to Rs 2,051.93 crore. Gross non-performing assets (GNPA) was at Rs 280.26 crore, GNPA ratio declined to 3.83% in Q2 FY23 from 4.49% in Q2 FY22. Net non-performing assets (NNPA) ratio reduced to 1.12% in Q2 FY23 from 1.35% in Q2 FY22. Commenting on the performance, Devesh Sachdev, managing director and CEO of Fusion Micro Finance said, ?We have clocked a strong Q2 FY23, wherein our profit after tax (PAT) increased 2,860.35% YoY from Rs 3.21 crore to Rs 95.06 crore, delivering the highest quarterly PAT till date. Our asset under management (AUM) grew 54.46% YoY from Rs 5,209.79 crore to Rs 8,047.18 crore and our borrower base grew to 3.20 million across 1,031 branches in 19 States including 2 Union Territories. These strong foundations combined with our deep understanding of the sector have helped us grow at a CAGR of 37% in the last 3 years. CRISIL had also recently upgraded its long-term rating on our bank facilities and debt instruments to A/Stable from A-/Stable.? Meanwhile, the board of directors of the company Monday, 28 November 2022, approved the proposal to raise funds by issue of non-convertible debentures, aggregating up to Rs 145 crore, on private placement basis. Fusion Micro Finance is a second largest microfinance non-banking finance company (NBFC) in terms of gross loan portfolio (GLP) providing financial services to unserved and underserved women in rural and peri-rural areas across India. The company provides small value collateral free loans. Apart from micro finance lending, the NBFC also have insignificant lending to MSME enterprises. Shares of Fusion Micro Finance debuted on the bourses on 15 November 2022. The scrip was listed at Rs 360.50, representing a discount of 2.04% to the initial public offer (IPO) price of Rs 368. The scrip declined 0.21% to currently trade at Rs 374.70 on the BSE. Powered by Capital Market – Live News