Q1 2025 Fusion Finance Ltd Earnings Call Transcript
Key Points
- Fusion Finance Ltd (BOM:543652) reported a steady disbursement of INR2,987 crores in Q1 FY25, maintaining stability compared to Q4.
- The active borrower count increased by 8.44% annually, reaching around 39.5 lakhs.
- The company opened 101 new branches in Q1, bringing the total to 1,398 branches, which is expected to enhance their reach and service capabilities.
- Net Interest Margin (NIM) remained stable at 11.6%, with a 19 bps reduction in the cost of borrowing.
- The MSME book grew by approximately 8% quarter-on-quarter, reaching INR570 crores, indicating a healthy expansion in this segment.
- There was a slight moderation in collections over the last 2-3 months, with concerning trends in some pockets.
- The company recognized an increase in customer leverage, with 33% of customers having outstanding loans across multiple microfinance institutions.
- OpEx for Q1 saw an increase due to new branch openings and annual increments, which may impact profitability in the short term.
- The gross NPA stands at 5.46% and net NPA at 1.25%, indicating a rise in non-performing assets.
- The company had to proactively move INR221 crores of its portfolio from Stage-1 and Stage-2 to Stage-3, reflecting higher credit costs and potential risks.
Ladies and gentlemen, good day, and welcome to Fusion Microfinance Limited Q1 FY25 earnings conference call hosted by JM Financial. (Operator Instructions) Please note that this conference is being recorded.
And I now hand the conference over to Mr. Sameer Bhise from JM Financial. Thank you, and over to you, sir.
Good evening, everyone, and welcome to the 1Q FY25 earnings conference call of Fusion Finance Limited. From the management today, we have Mr. Devesh Sachdev M.D and CEO; Mr. Gaurav Maheshwari, CFO Mr. Tarun Mehndiratta, CEO of the MFI business; and Mr. Deepak Madaan, Company Secretary and Chief Compliance Officer. As always, we will have opening comments from the management team, post which we will open the call for Q&A.
With that, I now transfer to Mr. Devesh Sachdev for his opening comments. Over to you sir.
Thank you, Sameer and GM Financial for hosting us.
Good evening, everyone, and thank
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