Five-Star Business Finance Ltd has seen its total AUM (assets under management) cross the ₹10,000 mark in this June quarter as the Chennai-based non-banking finance company has reported strong growth in income and profit.
“This is a very special quarter for Five Star as we touched the 5-digit AUM for the first time,” said Lakshmipathy Deenadayalan, Chairman & Managing Director.
Its total AUM grew to ₹10,344 crore in Q1 of this fiscal from ₹7,583 crore in the year-ago period. On a sequential basis, it grew by 7 per cent.
Net profit rose 37 per cent to ₹252 crore for the quarter ended June 30, 2024, compared to ₹184 crore in the year-ago quarter, driven by higher net interest income.
Total income up 38%
Total income grew 38 per cent to ₹669 crore in this June quarter from ₹484 crore, while net interest income rose 32 per cent to ₹511 crore from ₹387 crore.
Total disbursements increased by 16 per cent to ₹1,318 crore compared to ₹1,132 crore in Q1FY24.
“Barring the marginal impact of heat and elections, the quarter saw robust momentum across various aspects. On the collections front, we achieved a collection efficiency of 98.5 per cent and unique customer collections at 97.2 per cent. There was a slight increase in gross NPA by 3 bps from 1.38 per cent in Q4FY24 to 1.41 per cent, and in 30+ by 22 bps from 7.89 per in Q4FY24 to 8.11 per cent, which is a typical Q1 phenomenon,” added Deenadayalan.
The company raised incremental debt sanctions of ₹850 crore availing ₹825 crore. The company progressing well on its intent to diversify borrowing sources with the proportion of our borrowing from banks dropping from 84 per cent as of June’23 to 74 per cent as of June’24.
The company raised incremental debt sanctions of ₹850 crore, availing ₹825 crore, and is progressing well in diversifying its borrowing sources, with the proportion of borrowing from banks dropping from 84 per cent in June 2023 to 74 per cent in June 2024.
The cost of funds on the book remained nearly flat at 9.65 per cent for the quarter. “We continue to maintain robust liquidity on the balance sheet with ₹1,891 crore, along with unavailed sanctions of ₹400 crore,” he said. The company added 27 branches during Q1FY2025, taking the total number of branches to 547 branches across 9 States and 1 Union Territory.