Latest news with #FusionFinance
Time of India
2 days ago
- Business
- Time of India
Fusion Finance to bet on MSMEs, expects better show in Q3
Kolkata: Microfinance company Fusion Finance is expecting to turn around from third quarter, while the company would seek to lower concentration risk by increasing the share of secured lending to micro, small and medium enterprises, chief executive Sanjay Garyali told ET. "The growth is kicking in in the MSME space. The priority would be MSME in the next two years," Garyali said in his first ever media interaction after assuming the role of chief executive in March. Finance Value and Valuation Masterclass Batch-1 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass - Batch 2 By CA Himanshu Jain View Program Finance Value and Valuation Masterclass - Batch 3 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals By Vaibhav Sisinity View Program Finance Value and Valuation Masterclass - Batch 4 By CA Himanshu Jain View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program He said that the company will be aiming to take the share of MSME book to 18-20% by the next two years from 8% at present. The lender's assets under management (AUM) contracted 37% year-on-year to ₹7,688 crore at the end of June, from ₹12,193 crore a year ago, after it slowed loan disbursals to the overleveraged and defaulting bottom-of-the-pyramid borrowers. Garyali said that 44% of the AUM is of new loans with 6 months of average life and the new loans are showing a better repayment record than the old portfolio. Overall, it has seen a collection efficiency of 98.6%, up from 96.6% nine months back. The stress in sector led to a consecutive five quarter net loss for Fusion. It suffered a ₹92 crore loss in Q1 of the current fiscal after ₹1,225 crore annual loss in FY25. Garyali expected credit costs to come down further in the second quarter helping it to get closer to making profit. Live Events
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Business Standard
3 days ago
- Business
- Business Standard
Fusion Finance gains over 4% as Q1 results show asset quality boost
Shares of Fusion Finance, a microloans provider, gained 4.3 per cent on Monday following an upbeat performance in the quarter ended June 2025 (Q1). The stock closed at Rs 154, trimming its year-to-date loss to 11 per cent. The latest rise came on the back of improved financial metrics and operational efficiencies. Fusion Finance saw credit costs decline to Rs 178 crore (2.3 per cent) from Rs 253 crore (2.9 per cent) in Q4 FY25. The gross non-performing asset (NPA) ratio improved to 5.43 per cent from 7.92 per cent in the previous quarter, while net NPA fell to 0.19 per cent from 0.30 per cent. Quarterly net losses narrowed to Rs 92.25 crore, compared to Rs 164.5 crore in Q4 FY25, supported by reduced credit costs and higher net interest margins. 'Q1 performance reflects the early impact of the strategic actions we took last year. Credit costs have moderated, collections remain robust, and our operating model is delivering with greater consistency. With renewed confidence and sharper execution, we are well-positioned to build momentum through the year and drive long-term value creation,' said Devesh Sachdev, Managing Director, Fusion Finance. The company said it disbursed Rs 950 crore in Q1. Its assets under management stand at Rs 684 crore, with approximately 91 per cent secured. Fusion Finance reported a capital adequacy ratio of 29.52 per cent and liquidity of Rs 724 crore as of June 30, 2025. Warburg Pincus-backed Fusion had raised Rs 1,500 crore via a rights issue in January 2025 to strengthen its capital base. Shares of microfinance firms have been under pressure over the past year amid an uncertain outlook.
Business Standard
5 days ago
- Business
- Business Standard
Fusion Finance reports standalone net loss of Rs 92.25 crore in the June 2025 quarter
Sales decline 36.89% to Rs 434.43 crore Net Loss of Fusion Finance reported to Rs 92.25 crore in the quarter ended June 2025 as against net loss of Rs 35.62 crore during the previous quarter ended June 2024. Sales declined 36.89% to Rs 434.43 crore in the quarter ended June 2025 as against Rs 688.32 crore during the previous quarter ended June 2024. Particulars Quarter Ended Jun. 2025 Jun. 2024 % Var. Sales 434.43688.32 -37 OPM % 11.0322.76 - PBDT -89.83-48.36 -86 PBT -92.25-50.72 -82 NP -92.25-35.62 -159
Time of India
6 days ago
- Business
- Time of India
Fusion Finance posts Rs 92 crore loss in June quarter
Microfinance company Fusion Finance suffered Rs 92.25 crore of net loss as against a net loss of Rs 35.62 crore in the year ago period. This is the fifth consecutive quarterly loss for the lender, which breached various financial covenants in respect of borrowings amounting to Rs 3,567 crore as at June 30, 2025. This means these borrowings are repayable on demand. Productivity Tool Zero to Hero in Microsoft Excel: Complete Excel guide By Metla Sudha Sekhar View Program Finance Introduction to Technical Analysis & Candlestick Theory By Dinesh Nagpal View Program Finance Financial Literacy i e Lets Crack the Billionaire Code By CA Rahul Gupta View Program Digital Marketing Digital Marketing Masterclass by Neil Patel By Neil Patel View Program Finance Technical Analysis Demystified- A Complete Guide to Trading By Kunal Patel View Program Productivity Tool Excel Essentials to Expert: Your Complete Guide By Study at home View Program Artificial Intelligence AI For Business Professionals Batch 2 By Ansh Mehra View Program It's net interest margin was at 10.29 per cent as compared with 11.64 per cent in the year ago period. The company has obtained extension from some lenders in respect Rs 2570 crore while it is in discussion with the remaining lenders to obtain similar extensions. "The company's ability to continue as a going concern is dependent on obtaining waivers from demand by lenders for immediate repayment of borrowings for a period of at least twelve months from the balance sheet; and / or securing sufficient funds through other sources such as (i) successful sale of loans; (ii) balance call money of Rs 400 crore from partly paid up rights issue," managing director Devesh Sachdev said, in the statement furnished to stock exchanges. Live Events The lender's assets under management stood at Rs 7658 crore at the end of June, came down from Rs 12192 crore in a year. Gross non performing assets ratio remained steady at 5.43 per cent.
Time of India
18-06-2025
- Business
- Time of India
Spandana Sphoorty Financial plans Rs 750-crore capital raise with Kedaara Capital's equity infusion
Kolkata: Microfinance lender Spandana Sphoorty Financial is exploring possibilities of equity infusion from principal shareholder Kedaara Capital through a rights issue of shares within the proposed Rs 750-crore capital raise . Equity infusion from the promoter may boost the sagging confidence of other investors in the ailing microfinance company. Fusion Finance , for instance, saw more than a 50% jump in market capitalisation after its principal shareholder, Warburg Pincus, led a Rs 800-crore infusion via a rights issue. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Internet Deals for Your Home – 2025 Edition Search7 Learn More Undo Spandana suffered a Rs 1035 crore annual net loss in FY25 while its gross bad loan ratio jumped to 5.63% of the total portfolio, reflecting the overall stress in the microfinance sector . The company has formed a capital raising committee which is exploring the rights issue option, a person familiar with the matter said. The company didn't respond to ET's queries until the publication of this report. Live Events However, interim chief executive Ashish Damani told analysts in a post-earning call last month that the rights issue would be done with the promoter participation. "What we presently understand is, you know, they have confirmed their participation," he said. Kedaara Capital holds 48.13% in Spandana through funds named Kedaara Capital Fund III LLP and Kangchenjunga Ltd. However, questions have been raised by a few analysts on its participation since it has a scheduled exit by September 2026. It has already received a one-year extension. "Our equity raise plans are pretty much on track. We have received shareholder approval for capital raise during March for up to Rs 750 crore. The board committee has been formed to oversee this capital raise, including a possible rights issue in Q2 FY '26," Damani said during the call. Spandana's share price plunged 65% in the past one year to Rs 267 from Rs 795, as investors lost interest in it. Fusion Finance, another NBFC-MFI under immense stress, saw its share price falling to a one-year low of Rs 124 but it recovered to Rs 195.95 at the end of Wednesday after equity infusion through the rights issue, people tracking the sector said. Its one-year high was Rs 483. The entire microfinance ecosystem has been reeling under stress over the past one year due to high customer overleveraging, collapsing of the joint liability model and rising staff attrition. The sector was sitting on a heap of Rs 61000 crore of gross non-performing assets (including the written-off loans) at the end of March.
