Five-Star Business Finance Limited has informed the Exchange about Transcript
FIVESTAR · price
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Five-Star Business Finance reported FY25 AUM of INR11,877 crores, up 23.2% year-on-year, just missing the 25% guidance due to a disruption in Karnataka caused by a state ordinance. The company crossed INR1,000 crores in annual profit for the first time, posting a PAT of INR1,073 crores (up 28% YoY) and declaring a dividend of INR2 per share. Q4 PAT grew 18% YoY to INR279 crores. Asset quality saw a slight deterioration, with gross Stage 3 NPA rising to 1.79% from 1.62%, and NIM declining to 16.84% from 17.19% as yields fell to 23.7%. The CFO highlighted a 27 bps drop in incremental cost of funds to 9.29% and indicated further benefit of 25-30 bps as MCLR cuts flow through. Management guided for 25% AUM growth in FY26, sub-2% GNPA, and sub-1% credit cost, and flagged plans to enter affordable housing organically in late FY26.
Strong profit milestone and steady AUM growth are positives, but the slight NIM compression, rising NPAs, and Karnataka-style regulatory risks in Tamil Nadu (where the company has 30% exposure) may keep investors cautious. Falling borrowing costs and easing overleverage concerns could support margin recovery in coming quarters.