Fusion Micro Finance rallies 3% on robust Q4 results

Shares of Fusion Micro Finance Ltd jumped 3 percent in early trade post robust Q4 results. At 11:43 am the Fusion Micro Finance Ltd stock was trading 2.49 percent higher at Rs 491.55 on BSE.

Fusion Micro Finance reported its Q4 numbers on May 22, 2023. On a quarterly basis, the company reported a total income of Rs 520.692 crores during the period ended March 31, 2023, as compared to Rs 466.503 crores during the period ended December 31, 2022.

The company reported its net interest income (NII) at Rs 273.75 crores, clocking a 10.51 percent growth on a quarter-on-quarter basis. Whereas profit after tax (PAT) for the quarter was reported at Rs 114.52 crores clocking a growth of 11.77 percent.

Also read: Dhanlaxmi Bank jumps 3% on wider profits in Q4

Fusion managing director Devesh Sachdev expects the NIM to further improve to 11-11.5 percent once the churning of the portfolio completes with higher rates. The lender increased lending rates in May after the Reserve Bank of India removed the cap on it. The NBFC-MFI’s pre-provision operating profit rose 48 percent to Rs 221 crore. Its assets under management grew 37 percent year-on-year to Rs 9296 crore catering to 3.53 million borrowers.

The gross non-performing assets ratio improved to 3.46 percent at the end of March as compared with 5.71 percent a year prior to that. Impairment of financial instruments declined 48.36 percent to 69 crores, the company said. The lender wrote off Rs 45 crore of bad loans in the fourth quarter, taking the total write-off to Rs 247 crore in the full fiscal.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol are their own and not those of the website or its management. Moneycontrol advises users to check with certified experts before taking any investment decisions.