Fusion Finance Ltd · NSE:FUSION
Fusion Finance — Q3 FY2025 Earnings Presentation
46 slides from Fusion Finance's earnings presentation, Feb 12, 2025
Slide 1: Exchange filing cover letter for earnings presentation
Letter No. FFL/SEC/2024-25/SE-149 Date: 12.02.2025 The Manager The Manager Listing Department Listing Department National Stock Exchange of India Limited BSE Limited Exchange Plaza, Plot No. C/1, G Block Bandra Phiroze Jeejeebhoy Towers Kurla Complex, Bandra (E), Mumbai - 400 051 Dalal Street, Mumba
Slide 2: Investor Presentation Q3 & 9M FY25
Creating Opportunities… Creating Investor Presentation Opportunities… Q3 & 9M FY25 Fusion Finance Limited
Slide 3: Disclaimer
Disclaimer Creating Opportunities… By attending the meeting where this Presentation is made, or by reading the Presentation materials, you agree to be bound by the limitations contained herein and to maintain absolute confidentiality regarding the information disclosed in this Presentation. Any fail
Slide 4: Presentation Path
Presentation Path Creating Opportunities… Executive Summary Vision, Mission & Values Key Strengths 1 3 5 Financial Overview Our Presence Performance 2 4 6 3 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 5: Executive Summary
Creating Opportunities… Executive Summary 1 4 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 6: Executive Summary Q3 FY'25
Executive Summary Q3 FY’25 Creating Opportunities… Early Green Shoots: measures implemented in Q2 started yielding positive outcomes; Q3 credit cost is lower than Q2 despite enhancing provision coverage Prudent Lending Approach: disbursements remain cautious, adhering to stricter norms, with an incr
Slide 7: Focus on strengthening the foundation to drive long-term value
Focus on strengthening the foundation to drive long-term value Creating Opportunities… 1 Borrower deleveraging visible in our customer base (20.6% borrowers with Stabilized Business, Fusion+>=3 in Dec’24 vs 31.5% in Mar’24) with Improving Stabilizing Asset Quality evident in improving month-on-month
Slide 8: Sustained improvement in collections through initiatives undertaken
Sustained improvement in collections through initiatives undertaken Creating Opportunities… Initiatives taken Impact Tighter underwriting norms since Q2 across lender criteria, exposure Month on month improvement in limits and credit policy current bucket collection efficiency Leveraging analytics f
Slide 9: Collection Efficiency: Improving Trend
Collection Efficiency: Improving Trend Creating Opportunities… Current Collection Efficiency % Top 5 State Oct'24 Nov'24 Dec'24 Jan'25 Uttar Pradesh 97.47% 97.83% 98.16% 98.26% Bihar 95.80% 96.11% 97.18% 97.15% Odisha 95.07% 96.13% 96.56% 96.67% Madhya Pradesh 96.45% 97.59% 98.05% 97.84% Tamil Nadu
Slide 10: Significant borrower deleveraging
Significant borrower deleveraging Creating Opportunities… Timeline / Unique to Fusion Fusion+1 Fusion+2 Fusion+3 Fusion+4 Fusion+ >= 5 Fusion+ >= 3 Fusion+ >= 4 Relationship # ever + now Customer Composition* Mar'24 30.9% 19.7% 17.8% 14.6% 10.5% 6.4% 31.5% 16.9% Dec’24 33.6% 26.3% 19.4% 11.8% 5.2% 3
Slide 11: Performance Highlights
Performance Highlights Creating Opportunities… Key Metrics Q3’25 Q3’24 YoY Q2’25 QoQ AUM (₹ Cr) 10,599 10,693 (1)% 11,571 (8)% Disbursement (₹ Cr) 1,168 2,713 (57)% 1,661 (30)% Total Income (₹ Cr) 483 613 (21)% 704 (31)% NII (₹ Cr) 223 337 (34)% 397 (44)% NIM 8.9% 11.5% (268) Bps 11.5% (263) Bps PPO
Slide 12: Credit Cost
Credit Cost Creating Opportunities… (₹ Cr) Particulars Q3 FY 25 Q3 FY 24 Q2 FY 25 9M FY 25 FY 24 Opening ECL [A] 1,141 300 644 355 313 - Provisions as per ECL[B] 571 93 693 1,612 361 Reversals (on account of write-off) [C] 161 81 196 416 319 Closing ECL [D = A+B-C] 1,551 312 1,141 1,551 355 Impairme
Slide 13: Overview
Creating Opportunities… Overview 2 12 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 14: 15+ years of proven track record
15+ years of proven track record Creating Opportunities… Diversified Client Growth AUM Growth Organically diversified ~20% V/s last 5 Years ~24% V/s last 5 years since inception Technology Robust Liability Marquee Investor On Cloud since 2013 Warburg Pincus - 2018 Management Ratings IPO New Product
Slide 15: Vision, Mission & Values
Creating Opportunities… Vision, Mission & Values 3 14 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 16: Vision, Mission and Values
Vision, Mission and Values Creating Opportunities… Vision: “Fusion Finance with a social vision and business orientation aims to provide underprivileged women with economic opportunities to transform the quality of Mission: their lives.” “A self-sustainable financial institution which leverages the
Slide 17: Our Presence
Creating Opportunities… Our Presence 4 16 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 18: Our Presence
Our Presence Creating Opportunities… J & K (2) Punjab (55) Himachal Pradesh (9) Uttarakhand (21) Haryana (47) Uttar Pradesh (278) Assam (33) Rajasthan (111) Delhi (8) FY15 FY 16 FY24 9M FY 25 States 5 9 22 22 Bihar(185) Madhya Pradesh (132) Districts 38 88 453 496 Jharkhand (62) Branches 75 173 1,29
Slide 19: Key Strengths
Creating Opportunities… Key Strengths 5 18 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 20: Key Strengths
Key Strengths Creating Opportunities… Diversification Liability Management Consistency Digital Orientation People Operational Prudence Strong Governance 19 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 21: Key Strengths: Diversification
Key Strengths : Diversification Creating Opportunities… QoQ Network Distribution Top 5 states concentration Rural vs Urban Presence 22 22 22 22 22 70% 70% 70% 93% 94% 94% 94% 94% 1,75 0 22 70% 70% 1,463 1,506 21 1,398 1,55 0 1,35 0 1,242 1,297 20 19 1,15 0 18 950 17 750 16 7% 6% 6% 6% 6% 550 15 Q3'2
Slide 22: Key Strengths: Consistency
Key Strengths : Consistency Creating Opportunities… (₹ Cr) QoQ AUM Disbursement Growth (1)% Growth (57)% 12,193 11,476 11,571 2,953 2,987 10,693 10,599 2,713 1,661 1,168 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 AUM YoY Disbursement CAGR 25% 11,476 10,294 10,599 9,296 8,596 6,786 6
Slide 23: Key Strengths: Consistency (Contd…)
Key Strengths : Consistency (Contd…) Creating Opportunities… For MFI Vertical QoQ AUM/ RO (₹ Cr) AUM/Branch (₹ Cr) Borrower/ Branch 1.3 1.3 8.9 9.1 8.9 3,260 3,204 1.2 3,017 1.1 1.1 8.0 2,805 7.1 2,590 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 YoY AUM/
Slide 24: Key Strengths: Operational Prudence
Key Strengths : Operational Prudence Creating Opportunities… For MFI Vertical QoQ Avg. Ticket Size (₹ K) Borrowers (Lakh) Avg. OS / Borrower (₹ K) 29.6 46.4 47.1 39.3 44.7 45.2 38.4 38.3 43.8 37.6 28.5 28.6 36.4 27.4 27.2 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25
Slide 25: Branch Vintage
Branch Vintage Creating Opportunities… For MFI Vertical Mar’24 Dec'24 Branch Vintage (Years) Branches POS Contribution Branches POS Contribution <1 Yrs 181 4% 249 6% 1 - 2 Yrs 121 7% 152 7% 2 - 3 Yrs 190 15% 173 11% > 3 Yrs 708 74% 830 76% Grand Total 1,200 100% 1,404 100% POS contribution rises wit
Slide 26: Key Strengths: People
Key Strengths : People Creating Opportunities… Stable and experienced core management team with an average tenure of almost 8 years Strong second line with diverse experience with a healthy balance of home-grown and new talent Team Size Performance driven culture with differentiated rewards for high
Slide 27: Key Strengths: Liability Management
Key Strengths : Liability Management Creating Opportunities… Average Cost of Borrowing Marginal & Average Cost of Borrowing 11.2% 11.3% 10.5% 10.2% 10.2% 10.1% 10.3% 10.4% 10.4% 10.4% 10.1% 10.1% 10.0% 10.3% 10.2% YoY QoQ '21 '22 '23 '24 9M'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Marginal Cost of Borrowing
Slide 28: Key Strengths: Liability Management (Contd…)
Key Strengths : Liability Management (Contd…) Creating Opportunities… Positive ALM (Months) Stable Liquidity Position ₹ Cr. 23.7 24.2 Apr’25 to 23.1 Details Jan-25(P) Feb-25(P) Mar-25(P) 22.2 22.1 Jun’25(P) 20.4 18.8 17.5 Opening Cash & Equivalents (A) 1,151 1,348 1,461 1,852 17.6 15.2 Loan Recovery
Slide 29: Key Strengths: Digital Orientation
Key Strengths : Digital Orientation Creating Opportunities… Technology – Infrastructure Customer Experience Early Cloud adoption Digital onboarding since 2019 Scalable Cashless disbursement at 99.86% in Open API Q3 FY25 Architecture Business Outcome Operational Efficiency “Touch & Tech” Loan Approva
Slide 30: Key Strengths: Digital Orientation (Building for future)
Key Strengths : Digital Orientation (Building for future) Creating Opportunities… Robotic Process Automation facilitating ▪ Automated credit decisioning Develop Technology Solutions Leverage Robotics ▪ Driving operational efficiency To proactively access opportunities To automate manual & repetitive
Slide 31: Key Strengths: Strong Governance
Key Strengths : Strong Governance Creating Opportunities… Independent Risk Independent Audit Function reporting Management Function to Board Audit Committee Extensive use of Au Strong reporting mechanism & Data Analytics nt d Comprehensive risk-based audits e it M nagem anage Automation driving opti
Slide 32: ESG - seeking to be a responsible Financial Institution
ESG - seeking to be a responsible Financial Institution Creating Opportunities… Responsible approach towards environment , community and employees as well as towards internal governance standards Continuous Engagement with Community and Employees Governance Standards Expanding CSR Reach: Through 21
Slide 33: Fusion CSR: Snapshots till Q3 FY25
Fusion CSR : Snapshots till Q3 FY 25 Creating Opportunities… 81,148 21 360+ 21 211 (37,914 in Q3) CSR Programs CSR Activities Lives Touched States & UTs Districts 33 14 155+ 2,100+ 840+ Aspirational Partnership Branding & Employees External Districts with NGOS Visibility Participation Stakeholders 3
Slide 34: Glimpses of CSR Programs
Glimpses of CSR Programs Creating Opportunities… FLP Beej Urja (solar panel JAL (WASH) Health Camp Road Safety Awareness inauguration) Distribution of Primary School Flood Relief Work Jivika Garima (MHM) Wheelchair Distribution Educational Accessories Renovation 33 |February 12, 2025 | © Fusion Fina
Slide 35: Financial Performance
Creating Opportunities… Financial Performance 6 34 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 36: Profit and Loss Statement
Profit and Loss Statement Creating Opportunities… Profit & Loss Statement (₹ Cr) Q3 FY 25 Q3 FY 24 YoY % Q2 FY 25 QoQ% 9M FY 25 9M FY 24 YoY % Revenue from operations - Interest income 438.18 540.04 (19)% 626.08 (30)% 1,685.54 1,515.84 11% - Other revenue from operations 35.63 52.99 (33)% 65.47 (46)
Slide 37: Balance Sheet
Balance Sheet Creating Opportunities… Financial Position (₹ Cr) Q3’25 Q3’24 YoY % Q2’25 QoQ% Financial and Non-financial assets - Cash & Other Bank Balances 1,135.48 1,357.66 (16)% 1,793.06 (37)% - Bank balances other than cash and cash equivalents 66.08 60.59 9% 57.50 15% - Loans (Net of Impairment
Slide 38: Key Ratios
Key Ratios Creating Opportunities… QoQ Margin Analysis Cost to Income Opex to Avg. AUM 21.9% 21.8% 21.7% 21.5% 75.9% 19.1% 7.4% 6.1% 6.3% 6.5% 5.9% 36.8% 36.8% 38.4% 40.4% 11.5% 11.6% 11.6% 11.5% 10.3% 10.4% 10.2% 10.1% 10.1% 8.9% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'
Slide 39: Key Ratios
Key Ratios Creating Opportunities… GNPA NNPA 12.6% 9.4% 2.4% 1.7% 5.5% 1.3% 3.0% 2.9% 0.8% 0.6% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 CRAR 27.9% 27.5% 25.9% 24.4% 22.2% Q3'24 Q4'24 Q1'25 Q2'25 Q3'25 38 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 40: MSME
MSME Creating Opportunities… MSME vertical launched in Dec 2019 as a dedicated business unit to address the ‘missing middle’ Building credit assessment capability …nucleus of our MSME Business Update 9M FY’25 strategy Clients 20,129* AUM (₹ Cr) 635* Clear focus on mapping adjacencies and potential t
Slide 41: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Creating Opportunities… 40 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 42: Stable & Experienced Management Team
Stable & Experienced Management Team Creating Opportunities… 41 |February 12, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 43: Shareholder Profile
Shareholder Profile Creating Opportunities… Category Top Share Holders (As on date) Alternate Investment Fund NUVAMA PRIVATE INVESTMENTS TRUST Alternate Investment Fund AIONIOS ALPHA FUND - AIONIOS ALPHA FUND I Body Corporate SINGULARITY HOLDINGS LIMITED 57.71% 57.71% Body Corporate CHARTERED FINANC
Slide 44: Abbreviations
Abbreviations Creating Opportunities… AUM Asset Under Management H Half Yearly PAT Profit After Tax Q Quarter NIM Net Interest Margin ALM Asset Liability Management ROE Return on Equity TAT Turn Around Time ROA Return on Assets API Application Programming Interface ECL Expected Credit Loss UPI Unifi
Slide 45: Definitions
Definitions Creating Opportunities… • AUM represents the aggregate of principal outstanding for all loans including the assigned portfolio as of the last day of the relevant period/year • Net Interest Income represents interest income on loan portfolio for the relevant period/year reduced by finance
Slide 46: Thank You
Creating Opportunities… Creating Thank You Opportunities… For Investor queries contact: Mr. Deepak Madaan| Email: investor.relations@fusionfin.com Adfactors PR |Investor Relations |Aashvi Shah - aashvi.shah@adfactorspr.com | Smit Shah - smit.shah@adfactorspr.com 45 |February 12, 2025 | © Fusion Fina