Five-Star Business Finance Limited reported its financial results for the quarter ended December 31, 2024 (Q3 FY25), highlighting strong growth in profitability, stable asset quality, and increased branch expansion.
Key Financial Highlights (Q3 FY25)
- Assets under Management (AUM): ₹11,178 crore, a 25% YoY growth from ₹8,931 crore.
- Total Income: ₹731 crore, up 28% YoY from ₹571 crore.
- Profit Before Tax (PBT): ₹365 crore, reflecting a 26% YoY growth from ₹290 crore.
- Net Profit (PAT): ₹274 crore, up 26% YoY from ₹217 crore.
- Net Interest Margin (NIM): 16.56%, compared to 16.80% YoY.
- Return on Assets (ROA): 8.10%, down by 15 bps YoY.
- Return on Equity (ROE): 18.49%, up 75 bps YoY.
Operational Highlights
- Disbursements: ₹941 crore during the quarter, down 22% YoY due to the company’s cautious approach to portfolio growth in line with its guidance.
- Collection efficiency: 98% overall, with unique customer collection efficiency at 96.7%.
- Branch network: Expanded to 729 branches across 10 states/UTs, with 69 new branches added in Q3 FY25.
Asset Quality
- Gross Stage 3 Assets: 1.62%, up from 1.40% YoY.
- Net Stage 3 Assets: 0.81%, compared to 0.65% in Q3 FY24.
- Provision Coverage Ratio: 50.20% on Stage 3 assets.
Borrowings and Liquidity
- Total borrowings: ₹7,362 crore as of December 2024.
- Liquidity position: ₹2,145 crore on the balance sheet.
- Cost of funds: 9.63%, remaining stable compared to the previous quarter.
Management Commentary:
Mr. Lakshmipathy Deenadayalan, Chairman & Managing Director, highlighted that despite challenges faced by the broader financial sector, the company maintained strong asset quality and profitability through its collections-first approach.
The company also secured incremental debt sanctions of ₹1,400 crore during the quarter and diversified its borrowing sources, including funding from HDFC Mutual Fund, HSBC Mutual Fund, and SIDBI.
Outlook:
Five-Star Business Finance expects to sustain its growth trajectory through continued focus on collections, strategic expansion, and disciplined lending practices.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Always conduct your own research or consult a financial advisor before making investment decisions.
