Five-Star Business Finance (FIVESTAR) Q1 24/25 earnings summary

Executive summary

• Achieved record AUM of ₹103,439 Mn (INR 10,344 crore) as of June 2024, a 36% year-on-year growth and 7% sequentially, with 547 branches after opening 27 new ones.

• Highest ever quarterly PAT at ₹2,516 Mn (INR 252 crore), up 37% year-on-year and 7% quarter-on-quarter.

• ROE reached an all-time high of 18.95% for the quarter, with expectations to surpass 19% for the full year.

• Unaudited Q1 FY25 results were approved by the Board and reviewed by statutory auditors with an unmodified opinion.

Financial highlights

• Total income for Q1 FY25 was ₹66,938.11 lakhs, up 38% year-on-year and 8% sequentially.

• Disbursements for the quarter were ₹13,182 Mn (INR 1,318 crore), 16% higher year-on-year but flat sequentially.

• Net total income rose 32% year-on-year to ₹5,112 Mn; PPOP increased 36% to ₹3,547 Mn.

• PAT for Q1 FY25 was ₹25,157 lakhs, compared to ₹18,370.88 lakhs in Q1 FY24 and ₹23,606.11 lakhs in Q4 FY24.

• Collection efficiency dipped slightly to 98.5% from 99.5% in March, attributed to elections, heatwave, and school season.

Outlook and guidance

• Confident of achieving 30%+ AUM growth for FY25, with branch expansion and increased ticket size as key levers.

• Plans to reduce lending rates by 50-75 basis points for new loans in FY25, passing on benefits from lower borrowing costs.

• Guidance for credit cost remains at 70-80 basis points for the year.

• Focus on expanding branch network and increasing field officers to drive portfolio growth.