Fusion Micro Finance Ltd
NSE:FUSION
Fusion Micro Finance Ltd
Fusion Microfinance Ltd. operates as a non-banking financial company-microfinance institution, which provides financial services to women entrepreneurs belonging to the economically and socially deprived section of the society. The company is headquartered in Gurgaon, Haryana. The company went IPO on 2022-11-15. The firm provides financial services to underserved women across India in order to facilitate their access to greater economic opportunities. Its range of financial products is designed according to various life cycle needs of its customers. Its microfinance products include income generation loans, top up loans, emergency loans, and cross sell loans. Its income-generating loans fund businesses operating in the sectors, including agriculture-allied and agriculture, manufacturing and production, trade and retail, services, and others. The company offers MSME loans to eligible enterprises. To be eligible for MSME loans, an enterprise must be a manufacturer, trader or service provider, and have an investment limit of less than 1,500,000 rupees. Its MSME products include unsecured business loans, secured business loans, and machinery loans. The company has a network of about 966 branches spread across 377 districts in 19 states.
Fusion Microfinance Ltd. operates as a non-banking financial company-microfinance institution, which provides financial services to women entrepreneurs belonging to the economically and socially deprived section of the society. The company is headquartered in Gurgaon, Haryana. The company went IPO on 2022-11-15. The firm provides financial services to underserved women across India in order to facilitate their access to greater economic opportunities. Its range of financial products is designed according to various life cycle needs of its customers. Its microfinance products include income generation loans, top up loans, emergency loans, and cross sell loans. Its income-generating loans fund businesses operating in the sectors, including agriculture-allied and agriculture, manufacturing and production, trade and retail, services, and others. The company offers MSME loans to eligible enterprises. To be eligible for MSME loans, an enterprise must be a manufacturer, trader or service provider, and have an investment limit of less than 1,500,000 rupees. Its MSME products include unsecured business loans, secured business loans, and machinery loans. The company has a network of about 966 branches spread across 377 districts in 19 states.
Profitability Restored: Fusion Finance returned to profitability in Q3, posting a PAT of INR 14 crores, after a period of stress and losses.
Asset Quality: There was a third consecutive quarter of improvement in asset quality, with gross NPA declining to 4.38% and net NPA at 0.60%.
Strong Collections: Collection efficiency reached 99.4% overall in December and 99.7% on the new book, with 94% of collections realized on the same day.
Credit Costs: Credit costs have normalized, with management guiding for stable long-term credit costs in the 3.25% to 3.75% range.
Disbursement Growth: Q3 disbursements rose to INR 1,594 crores, up from INR 1,298 crores the previous quarter, with January disbursements exceeding INR 670 crores.
Funding & Liquidity: Liquidity remains comfortable at INR 1,783 crores, capital adequacy at 38.8%, and lender sentiment has improved with fresh sanctions and renewed lines.
Write-Off Recoveries: Fusion is targeting INR 50 crores in quarterly recoveries from written-off loans, supported by technology-enabled collection efforts.
Growth Outlook: Management is confident of crossing INR 10,000 crores in AUM in FY '27, supported by robust infrastructure, a stable credit environment, and strong capital.
