Fusion Micro Finance Reports Negative Performance in Q1 FY25, Receives 'Sell' Rating

Fusion Micro Finance, a smallcap finance company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financials, Fusion Micro Finance has seen a negative performance in the quarter, with a score of -9 compared to 13 in the previous quarter. However, there are some positive aspects to the company’s performance.

The net sales for the quarter were the highest in the last five quarters, at Rs 688.32 crore, and have been growing each quarter. This indicates a positive trend in the company’s sales in the near term.

On the other hand, the profit before tax less other income (PBT) for the quarter was at Rs -69.08 crore, which is a significant decrease of -148.7% compared to the average PBT of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has fallen by -128.2% compared to the average PAT of the previous four quarters.

The operating profit (PBDIT) for the quarter was also the lowest in the last five quarters, at Rs 156.69 crore. This indicates a negative trend in the company’s operating profit in the near term. The operating profit margin was also at its lowest in the last five quarters, at 22.76%, indicating a decline in the company’s efficiency.

Overall, Fusion Micro Finance’s financial performance for the quarter ending June 2024 has been negative. The company’s profitability has declined, and the stock has been given a ‘Sell’ call by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.