Five-Star Business Finance reported 22.35% rise in net profit to Rs 144.18 crore on a 17.29% increase in total income to Rs 361.86 crore in Q2 FY23 over Q2 FY22.
Profit before tax rose 25% year on year to Rs 192.82 crore in the quarter ended 30 September 2022.Net Interest Income jumped 31% to Rs 301 crore in Q2 FY23 as against Rs 274.3 crore posted in the same period last year. Net Interest Margin for the quarter stood at 18.20% as compared to 14.36% recorded in Q2 FY22.
During the quarter, Net AUM growth was of Rs 435.9 crore as against Rs 59.9 crore in Q2 FY22. Disbursements stood at Rs 802.8 crore as against Rs 353.3 crore during Q2 FY22. The company continued to have a robust collection efficiency of 100.1% during the quarter.
The return on assets (ROA) stood at 8.72% and return on equity (ROE) was at 14.55% during the period under review. The provision coverage on Stage 3 assets stood at 44.27% and the provision coverage on the overall portfolio was at 1.77%. Capital adequacy ratio was 67.65% as of 30 September 2022.
Commenting on the results, Lakshmipathy Deenadayalan, chairman & managing director of Five-Star Business Finance said, During H1 FY23, we disbursed Rs 1,371 crores registering a growth of 100% year on year. We added 52 branches during H1 FY23 resulting in a strong branch network of 352 branches to deliver quality service to our customers.
We had a collection efficiency of 100.1% for the quarter and the strong growth in disbursements and collection efficiencies clearly indicates that we are back to pre-covid levels in terms of growth, profitability and quality and are poised to build further on this strong growth trajectory.
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We continued to grow consistently and delivered an AUM growth of 24% year on year. PAT has grown at 30% and our ROA and ROE is one of the best in the industry. We enjoy a rating of A+ both from ICRA and CARE.
Five-Star Business Finance is a "Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-ND-SI)", providing secured business loans to micro-entrepreneurs and self-employed individuals largely excluded by traditional financing institutions. As on 30 September 2022, the total branch count stood at 352 branches.
Shares of Five-Star Business Finance debuted on the bourses on 21 November 2022. The scrip was listed at a price of Rs 449.95, representing a discount of 5.07% as compared to the initial public offer (IPO) price of Rs 474.
The scrip rose 0.17% to currently trade at Rs 501.70 on the BSE.
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