Chennai, July 29, 2023: The Board of Directors of Five-Star Business Finance Limited, has declared its unaudited financial results for the quarter ended June 30, 2023.
Key Performance Metrics for Q1FY2024
| Particulars (Rs. Cr) | Q1FY2024 | Q1FY2023 | Y-o-Y |
| Disbursements | 1,132 | 568 | 99% |
| AUM | 7,583 | 5,297 | 43% |
| PAT | 184 | 139 | 32% |
| Gross Stage 3 (%) | 1.41%1 | 1.12 %2 | Increase by 29 bps |
| 90+ DPD | 1.08%2 | 1.12%2 | Decrease by 4 bps |
| ROA (%) | 8.41% | 8.62% | Decrease by 21 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 Q1FY2024
| Particulars | Q1FY2024 |
| NIM | 17.74% |
| Return on Assets | 8.41% |
| Return on Equity | 16.62% |
- Networth of Rs 4,527 crores
- Borrowings from a large base of about 50 lenders
- Network of 386 branches as on June 30, 2023
Commenting on the results, Mr Lakshmipathy Deenadayalan, Chairman & Managing Director, Five-Star Business Finance Limited, said,
Five Star continued to build on the strong business and disbursal momentum built in Q4FY2023. During the quarter, we disbursed 1,132 Crores of loans as against 1,110 Crores in the previous quarter and also registered a disbursement growth of 99% on Y-o-Y basis. We added 13 branches during Q1FY2024 resulting in a strong branch network of 386 branches to deliver quality service to our customers. 7 out of these 13 branches were added in Rest of India locations (5 in MP, 1 in MH and 1 in Rajasthan which marks our entry into another new state). The remaining branches were added in locations across Southern States.
Even on the collections front, we saw stronger than typical Q1 numbers. We had a collection efficiency of 99.6% for the quarter and improvement across the various DPD buckets. While there was a marginal increase in NPA numbers as compared to the previous quarter (1.41% in Q1FY24 vs 1.36% in Q4FY23), which is a typical Q1 phenomenon. It is notable that our 30+ came down from 10.51% last quarter to 9.68% 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 43% Year on Year. PAT for Q1FY2024 has grown at 32% as compared to the previous FY and our ROA and ROE stand as one of the best in the industry.
During the quarter, CARE has also upgraded the rating to AA-, which is also a testimony to the company’s strength.
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