India's Fusion Finance hits record low on Q2 profit warning

Fusion Finance

23/09/2024 07:43

** Shares of Fusion Finance  FUSN.NS  slump to an
exchange-allowed maximum of 10%; stock hits record low at 275.9
rupees
    ** The microfinance lender said it may incur higher
estimated credit loss (ECL) provisioning in Q2 FY 2025
    ** Co expects ECL between 5 bln rupees (about $60 mln) to
5.5 bln rupees in Q2 FY25 vs credit loss of 3.48 bln rupees in
Q1  
    ** Adds CEO Devesh Sachdev to step down 
    ** Emkay Research cuts target price on stock to 260 rupees
from 340 rupees; retains "reduce" 
    ** New TP at ~33% discount on last close 
    ** Says co's ECL will lead to higher loss in Q2, change in
management would "derail the growth cart of the company" 
    ** Over 1.8 mln shares traded, 4.1x the 30-day avg 
    ** Stock down 52% YTD 

($1 = 83.5110 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru)
 ((Manvi.Pant@thomsonreuters.com; +918447554364;))