Fusion Micro Finance - Enhancing Capabilities To Build A Robust Franchise: Motilal Oswal

"NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.We attended the analyst meet held by Fusion Micro Finance Ltd., where the company highlighted the capabilities that it has built across its MFI and MSME verticals, treasury and finance, risk management, information technology, and internal audit. Instead of focusing on steep guidance/targets, the management focused on its aim of building a granular and robust balance sheet that can withstand any external stress events. .The management guided for an assets under management compound annual growth rate in mid-20s, which will come from 10-12% customer additions and 15-20% branch additions. Over the next two-three years, the management targets to increase the management overlay to 1.0%-1-25% (from ~0.6% now). In good years, it aims to strengthen the balance sheet through a management overlay to keep RoA in the range of 4.7%-4.9% and RoE around 18-20%. Fusion will focus on diversifying its liability franchise by reducing its dependence on bank term loans and replacing them predominantly with debt capital market instruments and external commercial borrowings (ECB). It will also explore opportunities in social/ESG/impact loans outside India..Click on the attachment to read the full report:.Trent - Conviction Intact: Motilal Oswal.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner."

Fusion Micro Finance - Enhancing Capabilities To Build A Robust Franchise: Motilal Oswal

The management expects NIM expansion to continue in FY25 with better visibility on its borrowing cost

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Fusion Micro Finance - Enhancing Capabilities To Build A Robust Franchise: Motilal Oswal

The management expects NIM expansion to continue in FY25 with better visibility on its borrowing cost

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