Invest
Finance company Five-Star Business Finance announced Q4FY24 & FY24 results:
Q4FY24 Financial Highlights:
- Total income of Rs 619 crore; YoY growth of 41%.
- PBT of Rs 313 crore; YoY growth of 40%.
- PAT of Rs 236 crore; YoY growth of 40%.
- ROA at 8.43%; QoQ increase of 18 bps and YoY decrease of 19 bps.
- ROE at 18.65%; QoQ increase of 91 bps and YoY increase of 255 bps.
FY24 Financial Highlights:
- Total income of Rs 2,195 crore; YoY growth of 44%.
- PBT of Rs 1,116 crore; YoY growth of 39%.
- PAT of Rs 836 crore; YoY growth of 39%.
- ROA at 8.42%; YoY decrease of 20 bps.
- ROE at 17.60%; YoY increase of 257 bps.
Commenting on the results, Lakshmipathy Deenadayalan, Chairman & Managing Director, said, " Q4 was a very strong quarter across the 3 aspects of quality, profitability and growth. During this quarter, we disbursed Rs 1,336 crore of loans as against Rs 1,209 crore during Q3FY24, a sequential growth of ~11%. We added 40 branches during Q4FY24, leading to a strong branch network of 520 branches to deliver quality service to our customers.
On the collections front, we saw improvement in numbers on a sequential basis. Our collection efficiency for the quarter was at 99.5% and unique customer collections came in at 97.8%, both of which were better than the numbers recorded for Q3FY24. Our gross NPA also dropped by 2 bps from 1.40% in Q3FY24 to 1.38% during the current quarter; we saw improvement across our DPD buckets with our 30 coming down from 8.35% last quarter to 7.89% during the current quarter. We are very confident of continuing our strong momentum in the coming financial year as well.
During the quarter, we also raised incremental debt sanctions of Rs 900 crore availing Rs 950 crore. We were able to obtain a large ticket sanction from NABARD, on of the largest domestic DFI, at competitive pricing, which would augur well from a diversification perspective. While not in Q4FY24, IFC, one of the largest DFI across the globe, subscribed to our NCDs in the month of April 2024 for a quantum of INR 500 crore. We are progressing well on our intent to diversify our borrowing sources, and all this has come in with no material impact on the allinclusive pricing. Our cost of incremental debt remained almost the same as Q3FY24 and we were able to avail fresh funding at 9.58% during the quarter. Cost of funds on the book also remained flattish at 9.64% for the quarter. We continue to have a robust liquidity on the balance sheet of Rs 1,879 crore along with unavailed sanctions of Rs 425 crore.
We continued to grow consistently and delivered an AUM growth of 39% YoY. PAT for Q4FY24 grew at 40% as compared to Q4FY23 and we closed with a full year PAT of 836 crore, with one of the best ROA and ROE ratios."
FAQ’s on Five-Star Business Finance Ltd Shares
