Five-Star Business Finance (FIVESTAR) Q4 18/19 earnings summary

Executive summary

• FY19 growth continued through the NBFC liquidity shock: consolidated AUM reached ₹2,113 crore, up 110% YoY, and disbursements were ₹1,481 crore.

• Consolidated PAT rose to ₹156.66 crore from ₹53.45 crore; 90+ DPD improved to 0.88% from 1.43%.

Financial highlights

• Consolidated revenue from operations was ₹40,890.80 lakh versus ₹20,063.29 lakh in FY18; PBT was ₹21,844.34 lakh versus ₹7,461.69 lakh.

• Consolidated PAT was ₹15,665.73 lakh versus ₹5,344.97 lakh; total comprehensive income was ₹15,627.67 lakh versus ₹5,315.47 lakh.

• Consolidated finance costs rose to ₹7,592.20 lakh from ₹5,698.30 lakh; impairment/write-offs were ₹755.18 lakh versus ₹932.03 lakh.

Outlook and guidance

• Growth plans include further semi-urban and rural branch expansion to serve under-served borrowers; Central India is a focus area for coming years.

• Management planned further technology investment, including machine learning and data analytics, to improve process efficiency, turnaround times and portfolio quality.

• Prospects were tied to anticipated additional capital and institutional funding, with continued focus on profitable growth in small business and housing loans.