Warburg Pincus-backed microfinance company Fusion Finance reported a net profit of Rs 62.4 crore in the first quarter of the fiscal as against a net loss of Rs 92.3 crore in the year ago period, backed improvement in asset quality.The Gurugram-based lender had earned a Rs 114 crore net profit in the fourth quarter, after seven quarter of consecutive losses.Its pre-provisioning operating profit for the first quarter stood at Rs 102 crore, up 18% from Rs crore in the year-ago period.Fusion's quarterly net interest margin improved to 11.93%, compared with 10.29% in the corresponding period last year. Asset quality strengthened further with gross non-performing assets ratio reducing to 2.5% at the end of June from 3.2% three-month prior and 5.4% seen a year back.The lender maintained a strong balance sheet with a capital adequacy ratio of 37% and liquidity of Rs 1,880 crore. Its assets under management grew to Rs 7702 crore at the end of June from Rs 7407 crore three months back.
Fusion Finance turns profitable as asset quality improves sharply
Fusion Finance reported a Rs 62.4 crore Q1 profit, reversing a year-ago loss, as improving asset quality lifted performance. Gross NPA declined to 2.5%, while net interest margin improved. A strong capital adequacy ratio and higher AUM further strengthened the lenders balance sheet.
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