Five-Star Business Finance (FIVESTAR) Q4 22/23 earnings summary

Executive summary

• FY23 marked a return to strong growth after COVID-related moderation: AUM rose 36.47% to ₹6,914.83 crore and PAT increased 33.06% to ₹603.50 crore.

• Growth was supported by 93% higher disbursements, 73 new branches and a borrower base of 293,954; gross Stage 3 assets were 1.36% under revised IRAC norms.

Financial highlights

• Revenue from operations was ₹1,520.85 crore vs ₹1,254.06 crore; PBT ₹804.73 crore vs ₹604.21 crore; PAT ₹603.50 crore vs ₹453.54 crore.

• Total income reached ₹1,528.93 crore; basic EPS was ₹20.71 vs ₹16.09 and diluted EPS was ₹20.49 vs ₹15.92.

• Finance costs decreased to ₹266.25 crore from ₹300.60 crore; impairment expense fell to ₹20.15 crore from ₹45.52 crore.

• Net worth increased to ₹4,339.53 crore from ₹3,710.35 crore; total assets were ₹8,702.83 crore at March 31, 2023.

Outlook and guidance

• Management expects growth momentum to continue, supported by expanded branch capacity and a larger borrower base, while aiming to sustain profitability and asset quality.

• New Salesforce, Oracle, Darwinbox and Credence systems were in development and expected to go live in FY24, supporting faster decisions, analytics and operating efficiency.

• The addressable secured MSME lending opportunity was estimated at ₹22 trillion; directors cited underserved micro-entrepreneurs and self-employed borrowers as a growth market.