Five-Star Business Finance (FIVESTAR) Q4 23/24 earnings summary

Executive summary

• FY24 delivered strong growth: revenue from operations rose 43.57% YoY to ₹2,195.10 crore, PAT increased 38.51% to ₹835.92 crore, and gross AUM expanded 39.42% to ₹9,640.59 crore.

• Growth was supported by 44% higher disbursements and branch expansion, while Gross Stage 3 assets remained low at 1.38%.

Financial highlights

• Revenue from operations ₹2,195.10 crore vs ₹1,528.93 crore; PBT ₹1,115.94 crore vs ₹804.73 crore; PAT ₹835.92 crore vs ₹603.50 crore.

• Interest income was ₹2,116.58 crore vs ₹1,498.78 crore; finance costs rose to ₹468.50 crore from ₹266.25 crore.

• Impairment expense increased to ₹55.36 crore from ₹20.15 crore and included ₹7.84 crore of write-offs; fair-value gains were ₹44.34 crore vs ₹8.31 crore.

• Basic EPS ₹28.64 vs ₹20.71; diluted EPS ₹28.39 vs ₹20.49.

Outlook and guidance

• Management expects to add 80–100 branches annually, combining new and cluster branches; branch infrastructure remains the primary growth lever.

• Average ticket size returned to pre-COVID levels in FY24; future increases are expected to at least track inflation, while remaining below other industry players.

• Management cited a ₹22 trillion demand opportunity for credit to micro-entrepreneurs and self-employed borrowers and expressed confidence in continued portfolio growth.