| Revenue growth | PAT up 5% YoY for 9M; disbursements moderated to prioritize collections. |
|---|---|
| Margins | NIMs compressed 50bps YoY; spreads stable at 13.9% due to lower funding costs. |
| Management confidence | Cautiously optimistic; focusing on fixing 'behavioral' collection issues before growth. |
Growth
PAT grew 5% YoY to ₹830cr for 9M; however, disbursements fell 18% QoQ as management tightened controls.
Outlook
Guided for a return to growth acceleration only after 1-2 quarters of asset quality stabilization.
Risks
Persistent stress in micro-loans, rising Stage 3 NPAs (slippages), and potential OpEx pressure from aggressive collection hiring.
Last quarter's promises, checked
Delivered
- Guided cost of funds drop → delivered drop from 9.64% to 9.21% (= BEAT)
- Guided unique customer collection efficiency → delivered 98.1% (= BEAT)
- Guided incremental debt cost → delivered 8.53% (= BEAT)
Partly delivered
- Guided branch expansion (90-96 range) → delivered 60-75 planned (= PARTIAL)
- Guided PAT growth → delivered 2% full year growth (= PARTIAL)
Missed
- Guided AUM growth (historical 25%+) → delivered 11% (= MISS)
- Guided slippage ratio stability → delivered 1.9% peak before Q4 drop (= MISS)
Earnings Call filed with NSE, NSE: FIVESTAR. Summary written with AI assistance from 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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- Call
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- Key figure
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Five-Star Business Finance Earnings Call: Key Takeaways
Management is navigating a 'behavioral' credit crisis in small-ticket loans by prioritizing collection stability over disbursement growth, resulting in moderated business momentum.
Five-Star Business Finance Earnings Call: Key Takeaways
Management is navigating a 'behavioral' credit crisis in small-ticket loans, choosing slow growth and aggressive collections over technical write-offs. While PAT is stable, elevated slippages and moderated disbursements signal significant near-term stress.