Five Star Business Finance shares drop nearly 10% as Q2 disbursements decline sequentially

Five-Star Business Finance shares dropped 9.64% to ₹792.55 on the NSE as of 9:48 am after the company reported a sequential decline in disbursements for Q2 FY25.

Key Financial Highlights

  • Net Profit: Increased by 34% YoY to ₹268 crore in Q2 FY25.
  • Total Income: Rose by 35% YoY to ₹706 crore.
  • Interest Income: Up 34% YoY to ₹679 crore.
  • Disbursements: Grew 4% YoY to ₹1,251 crore but declined from ₹1,318 crore in Q1 FY25.

Chairman and Managing Director Lakshmipathy Deenadayalan noted that the decline in quarterly disbursements was a strategic decision to moderate portfolio growth for the year. However, the sequential drop has raised investor concerns, leading to the sharp decline in share price as the market assesses the impact of this cautious approach on the company’s growth trajectory.

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