Shares of Fusion Micro Finance marched higher in morning trade on August 3 after the company posted a 60 percent jump in net profit at Rs 121 crore for the June quarter against Rs 75.10 crore year-on-year on the back of improving asset quality.
At 10.45 am, shares of the company were trading 1.43 percent up at Rs 655.50 on the BSE.
Total income increased by 53.36 percent YoY to Rs 552.78 crore from Rs 360.45 crore in Q1 FY23, the company said in a post-market hour filing on August 2.
Net interest income (NII) increased by 59.24 percent YoY to Rs 294.07 crore from Rs 184.67 crore. Disbursements grew 15.21 percent YoY to Rs 2,284.61 crore.
On the asset quality front, gross non-performing assets (GNPA) reduced to 3.20 percent from 3.46 percent, while net NPA reduced to 0.78 percent from 0.87 percent QoQ. Write-offs stood at Rs 59.36 crore.
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“Our Asset Under Management (AUM) grew by 31.43 percent YoY to Rs 9,711.75 crore from Rs 7,389.02 crore and our borrower base grew to ~36 lakh. Our NIM has expanded to 10.89 percent and there would be further expansion before it stabilizes,” said Devesh Sachdev, Managing Director and CEO, Fusion Micro Finance Ltd.
Fusion Micro Finance, founded in 2010, is amongst India’s leading NBFC-MFIs. It has a network of 1,103 branches spread across 20 states including 3 Union Territories, as of June 2023.
Shares of the company are up 76 percent on YTD basis, while the 1-year return stands at 101 percent.
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