Q1 2025 Five-Star Business Finance Ltd Earnings Call Transcript
Key Points
- Five-Star Business Finance Ltd (BOM:543663) achieved its highest ever asset under management (AUM) of INR 10,344 crores, marking a significant milestone.
- The company recorded its highest ever quarterly profit after tax (PAT) of INR 252 crores, reflecting a 37% year-on-year growth.
- Return on Equity (ROE) reached an all-time high of 18.95% for the quarter, with expectations to comfortably cross 19% for the full year.
- The company opened 27 new branches in the June quarter, bringing the total branch count to 547, indicating expansion and growth.
- Digital payment penetration improved significantly, with non-cash payments rising to 65%, moving towards the target of 70% by year-end.
- Collection efficiency dropped slightly from 99.5% in March to 98.5% in June, attributed to the heat wave and election season.
- The cost of funds remained high at 9.6%, with only a marginal decrease in the incremental cost of borrowing.
- Net Interest Margins (NIMs) compressed to 16.72% from 17.74% in the same quarter last year due to increased debt and leverage.
- There was a slight increase in Stage-3 assets from 1.38% in March to 1.41% in June, indicating a small rise in non-performing assets.
- Disbursement growth showed a deceleration, with a year-on-year increase of only 16%, down from previous higher growth rates.
Ladies and gentlemen, good day, and welcome to Five-Star Business Finance Limited Q1 FY25 earnings conference call hosted by JM Financial.
(Operator Instructions) I now hand the conference over to Mr. Sameer Bhise. Thank you, and over to you, sir.
Good morning, everyone, and welcome to the Five-Star Business Finance Limited's 1Q FY25 earnings conference call. First of all, I would like to thank the management of Five-Star Business Finance for giving us the opportunity to host this call.
From the management side, we have Mr. Lakshmipathy Deenadayalan, Chairman and Managing Director; Mr. Rangarajan Krishnan; Chief Executive Officer, and Mr. Srikanth Gopalakrishnan; Chief Financial Officer of the company.
As always, we will have opening comments from the Management, post which we will open the floor for Q&A.
With that, I would now like to hand over to Mr. Lakshmipathy Deenadayalan for his opening comments. Over to you, sir.
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
