Fusion Finance Ltd · NSE:FUSION
Fusion Finance — Q4 FY2025 Earnings Presentation
52 slides from Fusion Finance's earnings presentation, May 24, 2025
Slide 1: Submission of Earnings Presentation for Q4&FY25 (exchange letter)
Letter No. FFL/SEC/2025-26/SE-19 Date: 24.05.2025 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, Mumbai
Slide 2: Investor Presentation Q4 & FY25
Creating Opportunities… Creating Investor Presentation Opportunities… Q4 & 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 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 5: Executive Summary
Creating Opportunities… Executive Summary 1 4 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 6: Executive Summary Q4 & FY'25
Executive Summary Q4 & FY’25 Creating Opportunities… Capital Raise Concluded: Successful completion of ₹800* Cr partly paid rights issue; Subscribed 1.5x Strengthening Leadership: New CEO appointed in March 2025 Prudent Lending Approach: Calibrated growth in disbursements with enhanced focus on borr
Slide 7: Fusion Finance – FY25 Snapshot
Fusion Finance – FY25 Snapshot Creating Opportunities… AUM Disbursement Total Income PPOP ₹ 8,980 Cr ₹ 6,971 Cr ₹ 2,369 Cr ₹ 736 Cr GNPA NNPA NIM CRAR 7.92% 0.30% 10.21% 22.42% (30% + proforma for ₹800* Cr partly paid rights issue) Branches Active Client Net worth 1,571 32.1 Lakhs ₹ 1,643 Cr *First
Slide 8: MFI Business
Creating Opportunities… MFI Business 7 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 9: Strategic Actions Driving Borrower Deleveraging
Strategic Actions Driving Borrower Deleveraging Creating Opportunities… Timeline / Relationship # Unique to Fusion Fusion+1 Fusion+2 Fusion+ >= 3 Fusion+ >= 4 Customer Composition* Mar'24 30.9% 19.7% 17.8% 31.5% 16.9% Mar’25** 35.5% 26.8% 19.6% 18.1% 6.9% Fusion Customers* Fusion Customers having MF
Slide 10: Sustained Disbursement Momentum
Sustained Disbursement Momentum Creating Opportunities… Sourced vs Disbursed – MoM Disb Month # CB Pull (clients) - Lakhs # Disb. - Lakhs Conversion % Disb. (Cr) Apr’25 4.8 0.6 12.6% 313 Mar’25 5.1 0.8 15.6% 396 Feb’25 5.4 0.7 13.6% 369 Jan’25 5.6 0.6 10.5% 298 Dec’24 4.3 0.8 18.2% 379 Nov’24 4.7 0.
Slide 11: Disbursement Trend
Disbursement Trend Creating Opportunities… QoQ Disbursement – State-wise (₹ Cr.) Quarterly Avg DB Quarterly Avg DB Quarterly Avg DB Quarterly Avg DB Reduction in DB Contribution % State Contribution % DB Q1'25 Q2'25 Q3'25 Q4'25 Q1vsQ4 POS Uttar Pradesh 230 123 104 94 59% 27% 24% Bihar 183 90 49 63 6
Slide 12: Sustained Improvement in Current Collections
Sustained Improvement in Current Collections Creating Opportunities… Current CE % Current CE% 98.44% Top 5 State Dec'24 Jan'25 Feb’25 Mar’25 POS% 98.05% 97.74% Uttar Pradesh 98.16% 98.26% 98.56% 98.80% 24% 97.15% Bihar 97.18% 97.15% 97.87% 98.11% 19% 96.12% Odisha 96.56% 96.67% 97.10% 97.94% 11% MP
Slide 13: Collections, Flow Rates and QoQ bucket movement
Collections ||Flow Rates and QoQ bucket movement Creating Opportunities… Flow Rates - First bucket onwards 90.93% 86.20% 78.39% 86.64% 80.11% 66.76% 59.78% 49.84% 35.07% Q2'25 Q3'25 Q4'25 PAR 0 -> PAR 30 PAR 30 -> PAR 60 PAR 60 -> PAR 90 Initiatives Taken Collections team now well settled with 80% h
Slide 14: MSME Business
Creating Opportunities… MSME Business 13 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 15: MSME Product & Portfolio Metrics
MSME || Product & Portfolio Metrics Creating Opportunities… FINANCIAL OPERATIONS 100% Udyam registered – All ₹ 673* Cr ₹ 348 Cr 105 8 asset qualify under PSL pool AUM DISBURSEMENT BRANCHES STATES 23.03 % 2.8% 19,811** 20,287 PORTFOLIO ROI PROCESSING ACTIVE ACTIVE (AUM) FEES CUSTOMERS ACCOUNTS 94.28%
Slide 16: Target Market and Product Suite
Target Market and Product Suite Creating Opportunities… • Micro enterprises in retail Policy Parameter- MSME Secured (shops), traders and service Self-employed providers – mostly informal # Parameters (informal) transactions Micro Business enterprise (No salaried | Street 1 Target Customer • Limited
Slide 17: MSME Reach and API Led Digital Lending Process
MSME Reach API Led Digital Lending Process Creating Opportunities… 32 22 14 Uttar Pradesh Rajasthan Bihar OCR Data Extraction • PAN 12 10 08 • Aadhar Madhya Pradesh Haryana Gujarat 03 04 Fund Transfer 1 Underwriting Delhi Jharkhand • Integration with Banks • Banking Analyzer Focused States- UP, Biha
Slide 18: Overview
Creating Opportunities… Overview 2 17 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 19: 15+ years of proven track record
15+ years of proven track record Creating Opportunities… Diversified Client Growth AUM Growth Organically diversified ~11% over last 5 Years ~20% over last 5 years since inception Technology Robust Liability Marquee Investor On Cloud since 2013 Management Warburg Pincus - 2018 Ratings Capital Raisin
Slide 20: Performance Highlights
Performance Highlights Creating Opportunities… Key Metrics Q4’25 Q4’24 YoY Q3’25 QoQ AUM (₹ Cr) 8,980 11,476 (22)% 10,599 (15)% Disbursement (₹ Cr) 1,156 2,953 (61)% 1,168 (1)% Total Income (₹ Cr) 476 675 (29)% 483 (1)% NII (₹ Cr) 268 360 (26)% 223 20% NIM 8.6% 11.6% (302) Bps 8.9% (28) Bps PPOP (₹
Slide 21: Credit Cost
Credit Cost Creating Opportunities… (₹ Cr) Particulars Q4 FY 25 Q4 FY 24 Q3 FY 25 FY 25 FY 24 Opening ECL [A] 1,551 312 1,141 355 313 - Provisions as per ECL[B] 253 118 571 1,865 361 Reversals (on account of write-off) [C] 917 75 161 1,333 319 Closing ECL [D = A+B-C] 887 355 1,551 887 355 Impairment
Slide 22: Tech Interventions: Strengthening compliance, reducing fraud, digital onboarding
Tech Interventions ||Strengthening compliance, reducing fraud, and enabling seamless digital onboarding Creating Opportunities… Digital Onboarding Field Tech Transformation (In Progress) Real-Time Voter ID Validation Geo-Fencing & Location Intelligence → 100% real-time validation across all branches
Slide 23: It's All About People
It’s All About People Creating Opportunities… Robust Business Team Experienced Field Team Full-fledged Collection Vertical Majority of the field leadership Separate Collection verticals 85% team engaged in direct with 3 years or more vintage within MFI and MSME to focus business across Fusion in the
Slide 24: Vision, Mission & Values
Creating Opportunities… Vision, Mission & Values 3 23 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 25: 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 26: Our Presence
Creating Opportunities… Our Presence 4 25 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 27: Our Presence
Our Presence Creating Opportunities… J & K (2) Punjab (55) Himachal Pradesh (9) Uttarakhand (21) Haryana (48) Uttar Pradesh (300) Assam (33) Rajasthan (117) Delhi (5) FY15 FY 16 FY24 FY 25 States 5 9 22 22 Bihar(210) Madhya Pradesh (132) Districts 38 88 453 497 Jharkhand (71) Villages 7,289 15,218 1
Slide 28: Key Strengths
Creating Opportunities… Key Strengths 5 27 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 29: Key Strengths
Key Strengths Creating Opportunities… Diversification Liability Management Consistency Digital Orientation People Operational Prudence Strong Governance 28 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 30: 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% 70% 69% 94% 1,750 22 94% 94% 94% 94% 1,506 1,571 1,463 21 1,398 1,550 1,350 1,297 20 19 1,150 18 950 17 6% 6% 6% 6% 6% 750 16 Q4'24 Q1'25 Q2'
Slide 31: Key Strengths: Consistency
Key Strengths : Consistency Creating Opportunities… (₹ Cr) QoQ AUM Disbursement -22% -61% 12193 11,476 11571 10,599 2,953 2,987 8,980 1,661 1,168 1,156 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 AUM YoY Disbursement CAGR 18% CAGR 18% 11,476 10,294 9,296 8,980 8,596 6,971 6,786 6,180
Slide 32: Key Strengths: Consistency (Contd…)
Key Strengths : Consistency (Contd…) Creating Opportunities… QoQ For MFI Vertical AUM/ RO (₹ in Cr) AUM/Branch (₹ in Cr) Borrower/ Branch 3,204 1.3 9.1 8.9 3,017 1.2 2,805 1.1 1.1 8.0 2,590 7.1 2,175 0.9 5.7 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Yo
Slide 33: Key Strengths: Operational Prudence
Key Strengths : Operational Prudence Creating Opportunities… QoQ For MFI Vertical Avg. Ticket Size (₹ in K) Borrowers (in Lacs) Avg. OS / Borrower (₹ in K) 29.6 50.3 39.3 28.5 28.6 47.1 38.4 38.3 36.4 27.4 46.4 45.2 26.1 43.8 31.9 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'
Slide 34: Focus on Enhancing Branch Productivity
Focus on Enhancing Branch Productivity Creating Opportunities… For MFI Vertical Mar’24 Dec'24 Mar’25 Branch Vintage (Years) Borrower / Branches POS Contribution Branches POS Contribution Branches POS Contribution Branch <1 Yrs 181 4% 249 6% 268 9% 987 1 - 2 Yrs 121 7% 152 7% 180 7.9% 1,441 2 - 3 Yrs
Slide 35: Key Strengths: Liability Management
Key Strengths : Liability Management Creating Opportunities… Average Cost of Borrowing Marginal & Average Cost of Borrowing 11.7% 11.2% 11.3% 10.2% 10.2% 10.1% 10.1% 10.3% 10.5% 10.4% 10.4% 10.0% 10.1% 10.3% 10.3% YoY QoQ '21 '22 '23 '24 '25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Marginal Cost of Borrowing A
Slide 36: Key Strengths: Liability Management (Contd…)
Key Strengths : Liability Management (Contd…) Creating Opportunities… Positive ALM (Months) Stable Liquidity Position ₹ Cr. 23.7 24.2 Jul’25 to 22.2 23.1 Details Apr-25(P) May-25(P) Jun-25(P) Sep’25(P) 20.4 18.8 19.2 Opening Cash & Equivalents (A) 798 919 1,350 1,341 17.6 17.5 Loan Recovery [Princip
Slide 37: Key Strengths: Digital Orientation
Key Strengths : Digital Orientation Creating Opportunities… Customer Experience Technology – Infrastructure Digital onboarding since 2019 Early Cloud adoption Cashless disbursement at 99.98% in Scalable Q4 FY25 Open API Architecture Operational Efficiency Loan Approval TAT at 5.7days Business Outcom
Slide 38: 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 Strong reporting mechanism & Data Analytics Comprehensive risk-based audits Automation driving optimization Continuous process
Slide 39: 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 Strong Governance Framework: 50%
Slide 40: Fusion CSR: Snapshots FY25
Fusion CSR : Snapshots FY 25 Creating Opportunities… 1,16,900+ 21 500+ 21 270 (32,600+ in Q4) CSR Programs CSR Activities Lives Touched States & UTs Districts 47 14 195+ 2,600+ 1,100+ Aspirational Partnership Branding & Employees External Districts with NGOS Visibility Participation Stakeholders 39
Slide 41: Glimpses of CSR Programs
Glimpses of CSR Programs Creating Opportunities… Wheelchair Distribution Urja(solar panel) JAL (WASH) Fusion Sahayata Kendra GARIMA (MHM) Road Safety Awareness Distribution of Inauguration of Inauguration of Primary Health Camp FLP Mobile Medical Van Educational Accessories Anganwadi Renovation Scho
Slide 42: Financial Performance
Creating Opportunities… Financial Performance 6 41 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 43: Profit and Loss Statement
Profit and Loss Statement Creating Opportunities… Profit & Loss Statement (₹ Cr) Q4 FY 25 Q4 FY 24 YoY % Q3 FY 25 QoQ% FY 25 FY 24 YoY % Revenue from operations - Interest income 448.68 576.06 (22)% 438.18 2% 2,134.22 2,091.90 2% - Other revenue from operations 17.40 69.93 (75)% 35.63 (51)% 185.54 2
Slide 44: Balance Sheet
Balance Sheet Creating Opportunities… Financial Position (₹ Cr) Q4’25 Q4’24 YoY % Q3’25 QoQ% Financial and Non-financial assets - Cash & Other Bank Balances 783.05 1,474.69 (47)% 1,135.48 (31)% - Bank balances other than cash and cash equivalents 70.00 78.50 (11)% 66.08 6% - Loans (Net of Impairment
Slide 45: Key Ratios
Key Ratios Creating Opportunities… QoQ Margin Analysis Cost to Income Opex to Avg. AUM 75.9% 69.6% 21.8% 21.7% 21.5% 8.4% 7.4% 19.1% 19.1% 6.5% 6.1% 6.3% 11.6% 11.6% 11.5% 40.4% 10.3% 10.5% 36.8% 38.4% 10.2% 10.1% 10.1% 8.9% 8.6% Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'2
Slide 46: Key Ratios
Key Ratios Creating Opportunities… GNPA 12.58% NNPA 9.41% 7.92% 2.41% 5.46% 1.71% 1.25% 2.89% 0.60% 0.30% Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 CRAR 27.53% 25.86% 24.39% 22.20% 22.42% Q4'24 Q1'25 Q2'25 Q3'25 Q4'25 45 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 47: Highly Experienced Board with Strong Governance
Highly Experienced Board with Strong Governance Creating Opportunities… Devesh Sachdev Promoter & MD 46 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 48: Stable & Experienced Management Team
Stable & Experienced Management Team Creating Opportunities… Sanjay Garyali CEO 2025 Sushil Menon CISO 2024 47 |May 24, 2025 | © Fusion Finance Limited | www.fusionfin.com
Slide 49: Shareholder Profile
Shareholder Profile Creating Opportunities… Category Top Share Holders (As on date) 57.71% 55.20% Alternate Investment Fund NUVAMA PRIVATE INVESTMENTS TRUST Alternate Investment Fund AIONIOS ALPHA FUND - AIONIOS ALPHA FUND I Body Corporate FOUR DIMENSIONS SECURITIES (INDIA) LTD 28.17% FII ACM GLOBAL
Slide 50: 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 51: 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 52: 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 51 |May 24, 2025 | © Fusion Finance L