Five Star Business Finance

Five-Star Business Finance Limited reported quarterly results showing stabilization across key metrics. The company achieved a profit of Rs. 286 crores, representing 7% growth compared to the previous quarter. Return on assets improved from 7.24% to 7.49%, while return on equity increased from 16.57% to 16.91%. Disbursements stood at Rs. 1,196 crores versus Rs. 1,290 crores in Q1, attributed to additional underwriting controls implemented during the quarter. Collection efficiency from unique customers remained stable at 95.1%, while overall collection efficiency improved from 96.3% to 96.7%. The company added 33 branches and 769 business and collection officers during Q2. Credit costs were maintained at around 1.34%, marginally higher than Q1. Five-Star availed incremental debt of Rs. 1,068 crores at 8.56% cost and onboarded J.P. Morgan for Rs. 650 crores investment in PTCs. The company launched its housing loan product with initial files being processed. Management expects better performance in Q3 and stronger results in Q4, maintaining their annual guidance of 25% AUM growth and credit costs of 1.25-1.35%.

Five-Star Business Finance reported net profit of Rs 2.9 billion for Q2, compared to Rs 2.7 billion in the same period last year. The company's revenue increased to Rs 8 billion from Rs 7 billion year-over-year.

Five-Star Business Finance has received shareholder approval to issue non-convertible debentures (NCDs) worth up to ₹4,000 crore through private placement. This approval enables the company to raise funds through debt instruments from select investors.