Finance company Fusion Finance announced Q3FY25 results Financial Highlights: Total income stands at Rs 483 crore in Q3FY25 vs Rs 613 crore in Q3FY24. Net interest income (NII) for Q3FY25 is Rs 223 crore as compared to Rs 337 crore in Q3FY24. Net Interest Margin (NIM) at 8.86% in Q3FY25. Cost of Fund reduces to 10.28% in Q3FY25 from 10.37% in Q3FY24. Pre-provision Operating Profit at Rs 65 crore in Q3FY25. Loss After Tax of Rs 719 crore in Q3FY25; Higher loss is owing to reversal of net deferred tax assets (DTA) till date and enhanced provision coverage across all stages. Gross NPA stands at 12.58%; Net NPA at 1.71%. Credit cost at 5.8% in Q3FY25 vs 6.5% in Q2FY25. Healthy capital adequacy position with CRAR of 22.20%. Robust liquidity of Rs 1,151 crore aggregate of cash and cash equivalents and liquid assets, amounting to 12.26 % of the total assets. Operational & Business Highlights: AUM stands at Rs 10,599 crore in Q3FY25 as compared to Rs 10,693 crore in Q3FY24. Disbursements stand at Rs 1,168 crore in Q3FY25. Borrower base stands at ~36.6 lakh. Current portfolio Collection Efficiency stands at 97.7% in Dec’24 higher than 96.1% in Q2FY25. Devesh Sachdev, MD & CEO, Fusion Finance, said: “Our proactive actions in Q2 and tightened underwriting norms are showing positive trends across various parameters, including current portfolio’s collection efficiency, flow rates and net PAR accretion, among others. As guided, our provisioning for Q3 is lower than Q2 despite increase in provision coverage ratio. This quarter, we have reversed all net deferred tax assets (DTA) till date which has impacted our profitability. Otherwise, at a normalize tax rate, we would have witnessed lower loss of around Rs 380 crore, with standard corporate tax rate applied on the PBT. Importantly, there is no material effect on our CRAR and cash flows. Demonstrating continued confidence from our lenders, we have successfully secured waivers from the majority of them for covenant breaches identified during last quarter. We remain engaged with the few remaining lenders and are confident that there will be no demand for immediate repayment of borrowed funds. With our Rs. 800 crore rights issue progressing as planned and a robust CRAR of 22.20%, our capital position remains strong. With evolving industry dynamics and customer behaviour we remain confident in our approach to navigate these changes and continue to remain transparent and agile in our strategy and actions.” Result PDF