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

Executive summary

• Achieved record AUM of ₹103,439 Mn (INR 10,000 crore), up 36% year-on-year, with PAT reaching ₹2,516 Mn (INR 252 crore), a 37% increase year-on-year.

• ROE hit a record 18.95% for the quarter, with expectations to exceed 19% for the full year.

• Branch network expanded to 547, with 27 new branches opened; active loans reached 0.41 Mn.

• Asset quality remained stable with gross NPA at 1.41% and net NPA at 0.68%.

• 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, up 16% year-on-year but flat sequentially.

• PAT for Q1 FY25 was ₹2,516 Mn, up 37% year-on-year; EPS (basic) rose to ₹8.60 from ₹6.30.

• Net interest margin stood at 16.72%; cost-to-income ratio improved to 34.34% from 36.6% year-on-year.

• Collection efficiency dipped slightly to 98.5% from 99.5% in March, attributed to external factors.

Outlook and guidance

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

• Disbursement growth expected at 25%-27%, with number of loans growing 18%-22% annually.

• Credit cost guidance maintained at 70-80 basis points for the year.

• Plans to reduce lending rates by 50-75 basis points for new loans in FY25.

• Well-capitalized position and low leverage support strong AUM growth trajectory.