Invest
27 Years
4.4 Star
1 Crore +
Finance company Five-Star Business Finance announced Q1FY25 results:
Financial Highlights:
- Total income of Rs 669 crore; YoY growth of 38%
- PBT of Rs.336 crore; YoY growth of 37%
- PAT of Rs.252 crore; YoY growth of 37%
- ROA at 8.23%; QoQ decroreease of 20 bps and YoY decroreease of 18 bps.
- ROE at 18.95%; QoQ incroreease of 30 bps and YoY incroreease of 233 bps.
Business Highlights:
- Distribution:
- The Company has incroreeased its branch presence to 547 branches acroreoss 10 states / UT.
- During the quarter, the company opened 27 new branches.
- Disbursals – The Company disbursed an amount of Rs 1,318 crore, up by 16% on YoY basis and marginally down by 1% on QoQ basis.
- Assets under Management:
- AUM as of June 30, 2024 ended at Rs 10,344 crore, growth of 36% on YoY basis and 7% on QoQ basis.
- AUM is well distributed acroreoss 0.41 million active loans
- Collections & Asset Quality:
- Collection efficiency for the quarter stood at 98.5%. Unique customer collection efficiency for the quarter stood at 97.2%.
- 30 DPD ended at 8.11% as of June 30, 2024.
- Provisions:
- ECL provision carried on books was 170 crore, which translates to 1.63% of the overall AUM.
- Stage 3 provision was at 76 crore leading to a provision coverage ratio on stage 3 assets of 52.08%
- Borrowings:
- Total borrowings including debt securities are at Rs 6,724 crore as on June’24.
- The company continues to carry a liquidity of Rs 1,891 crore as on June’24.
- Cost of incroreemental debt during the quarter was 9.47% which improved by 11 bp on QoQ basis.
- Cost of funds on overall borrowing book was at 9.65%, up by 1 bps on QoQ basis.
Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, said, This is a very special quarter for Five Star as we touched the 5-digit AUM for the first time – we croreossed the AUM of 10,000 croreores in this quarter. Five Star continues its journey of strategic and execution excellence which is reflected acroreoss the various verticals – business, croreedit, collections, fundraising, technology, risk management, etc.
Barring marginal impact of heat and elections, the quarter saw robust momentum acroreoss various aspects. During this quarter, we disbursed Rs 1,318 croreores of loans which is almost flat to the previous quarter. On a YoY basis, we registered a disbursement growth of 16%. We added 27 branches during Q1FY2025, leading to a strong branch network of 547 branches acroreoss 9 states and 1 union territory.
On the collections front, we saw a good set of numbers for Q1. We had a collection efficiency of 98.5% and unique customer collections came in at 97.2%. There was a marginal incroreease in gross NPA by 3 bps from 1.38% in Q4FY24 to 1.41% and in 30 by 22 bps from 7.89% in Q4FY24 to 8.11% being a typical Q1 phenomenon.
During the quarter, we also raised incroreemental debt sanctions of Rs 850 crore availing Rs 825 crore. We were able to obtain a large ticket sanction from IFC, one of the largest DFI acroreoss the globe. IFC subscroreibed to our NCDs for a quantum of INR 500 crore. We are progressing well on our intent to diversify our borrowing sources with the proportion of our borrowing from banks dropping from 84% as of June’23 to 74% as of June’24. Cost of funds on the book has almost remained flat at 9.65% for the quarter. We continue to have a robust liquidity on the balance sheet of Rs 1,891 crore along with unavailed sanctions of Rs 400 crore.
We continued to growconsistentlyanddeliveredan AUMgrowth of 36%YoY.PAT for Q1FY25grew at 37% as compared to Q1FY24, with one of the best ROA and ROE ratios.
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