1, Nov 2023
Five-Star Business Finance Limited: AUM at INR 8,264 crores (up 44 Percent Y-o-Y and 9 Percent Q-o-Q)
Chennai, November 1st, 2023: The Board of Directors of Five-Star Business Finance Limited, has declared its unaudited financial results for the quarter and half year ended September 30, 2023.
Key Performance Metrics for H1FY2024
|Particulars (INR Cr)||H1FY2024||H1FY2023||Y-o-Y|
|Gross Stage 3 (%)||1.35%1||1.15%2||Increase by 20 bps|
|90+ DPD||1.07%2||1.15%2||Decrease by 8 bps|
|ROA (%)||8.45%||8.68%||Decrease by 23 bps|
Note 1: Gross Stage 3 Assets / NPA computed as per guidelines stipulated by RBI vide their circular on Prudential Norms on Income Recognition and Asset classification dated Nov 12, 2021, and further clarified through circular dated February 15, 2022 (wherein implementation of upgradation norms were deferred to October 1, 2022) i.e loans that have crossed 90 days past due any time on or after October 1, 2022, and not cleared their arrears fully, expressed as a % of AUM;
Note 2. Loans that are overdue for more than 90 days as on the reporting date
Performance Highlights for Q2FY2024/H1FY2024
|Return on Assets||8.47%||8.45%|
|Return on Equity||17.08%||16.85%|
- Networth of INR 4,736 crores
- Borrowings from a large base of about 47 lenders
- Network of 456 branches as of September 30, 2023
Commenting on the results, Mr Lakshmipathy Deenadayalan, Chairman & Managing Director, Five-Star Business Finance Limited, said, Five Star continued to witness strong traction across business and disbursal demand and collections momentum. During the quarter, we disbursed INR 1,204 Crores of loans as against INR 1,132 Crores in the sequential quarter and also registered a disbursement growth of 50% on Y-o-Y basis. We added 70 branches during Q2FY2024, our highest ever branch additions in a quarter, resulting in a strong branch network of 456 branches, to deliver quality service to our customers.
On the collections front, we saw a strong set of numbers, across the metrics of collections efficiency and 30+ DPD. We had a collection efficiency of 100.3% for the quarter and improvement across the various DPD buckets. We saw a decrease in NPA numbers as compared to the previous quarter (1.35% in Q2FY24 vs 1.41% in Q1FY24), our 30+ came down from 9.68% last quarter to 8.59% during the current quarter. We are very confident that the strong growth in disbursements and collection efficiencies pave the way for a strong trajectory across growth, quality, and profitability.
We continued to grow consistently and delivered an AUM growth of 44% Year on Year. PAT for Q2FY2024 has grown at 38% as compared to Q2FY2023 and our ROA and ROE stand as one of the best in the industry.