Five-Star Business Finance (FIVESTAR) Q4 21/22 earnings summary

Executive summary

• FY22 delivered 19.5% revenue growth and 26.34% PAT growth despite a severe second COVID wave; collections and asset quality remained resilient.

• The secured lending model served micro-entrepreneurs and self-employed borrowers; AUM reached ₹5,067.08 crore, up 14% YoY.

Financial highlights

• Revenue from operations was ₹1,254.06 crore vs ₹1,049.74 crore; total income was ₹1,256.17 crore vs ₹1,051.25 crore.

• PBT rose 26.82% to ₹604.21 crore; PAT increased 26.34% to ₹453.54 crore from ₹358.99 crore.

• Disbursements rose 41% to ₹1,756.24 crore; portfolio expanded 14% to ₹5,067.08 crore.

• Basic EPS was ₹16.09 vs ₹14.01; diluted EPS was ₹15.92 vs ₹13.61, with comparative figures adjusted for the 10-for-1 share split.

Outlook and guidance

• With pandemic effects receding and Q4 logins, sanctions and disbursals nearing pre-COVID levels, stronger growth was expected in FY23 if conditions remained normal.

• Plans included adding branches in semi-urban and rural markets, deepening core geographies and expanding into new areas.

• Average loan outstanding per borrower fell to ₹2.3 lakh from ₹2.50 lakh; efforts were planned to move ticket sizes toward pre-COVID levels.

• Technology priorities included a new ERP platform, fintech/API partnerships, data-led underwriting scorecards and stronger payment integrations.