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Earnings Call

Five-Star Business Finance Earnings Call: Key Takeaways

Management is navigating a 'behavioral' asset quality crisis in the small-ticket segment by prioritizing collections over growth, leading to stagnant disbursements and compressed ROA.

Highlights
Revenue growthPAT grew 1% YoY; disbursements dropped 18% QoQ.
MarginsNIM compressed by 50bps YoY due to higher Opex and credit costs.
Management confidenceCautious; focusing on 'fixing the problem' before accelerating.

Growth

PAT grew marginally at 1% YoY as disbursement volumes were intentionally curtailed to fix portfolio stress.

Outlook

Guidance on future growth remains paused until collection stability is proven over the next two quarters.

Risks

Elevated Stage-3 slippages and 'behavioral' contagion from microfinance stress could further erode asset quality.

Source

Earnings Call filed with NSE, NSE: FIVESTAR. Summary written with AI assistance from the document.

Read the document ↗

Five-Star Business Finance Ltd: key numbers

Share price
₹520.95
Market cap
₹15,378 Cr
Revenue (annual)
₹3,218 Cr
Net profit (annual)
₹1,099 Cr
P/E (TTM)
13.9×Sector 22.0×
Promoter holding
18.61%+0.00% QoQ
FII holding
43.97%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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