Five-Star Business Finance (FIVESTAR) Q4 17/18 earnings summary

Executive summary

• FY18 marked rapid expansion: consolidated AUM reached ₹1,008 Cr, up 104% YoY, while PAT rose to ₹55.8 Cr, up 185%.

• Lending remained focused on small-business and housing loans for underserved, self-employed borrowers, using cash-flow assessment and property collateral.

Financial highlights

• Consolidated operating revenue was ₹19,232.79 lakh vs ₹8,367.73 lakh in FY17; total revenue was ₹20,818.32 lakh vs ₹8,713.79 lakh.

• Consolidated PBT was ₹7,860.89 lakh vs ₹3,115.11 lakh; PAT was ₹5,583.46 lakh vs ₹1,962.33 lakh.

• Consolidated EPS was ₹32.20 basic and ₹31.59 diluted, vs ₹14.66 for both measures in FY17.

• Disbursements reached ₹705 Cr, up 89% YoY; employee count rose 75% to 1,290 and branches increased 26% to 130.

Outlook and guidance

• Planned continued growth in self-employed lending, supported by anticipated capital and institutional funding; expansion is aimed at underserved semi-urban and fast-growing rural areas.

• ₹619 Cr of capital was raised in August 2018, taking net worth above ₹1,200 Cr and supporting future growth plans.

• Management targeted further rating upgrades and a market-leading position in small-business finance, citing operating momentum and investor support.