Chennai, January 31, 2025 – Five-Star Business Finance Limited (NSE: FIVESTAR, BSE: 543663) announced its unaudited financial results for the quarter and nine months ended December 31, 2024, reporting robust revenue growth and profitability.
Key Financial Highlights (₹ in Lakhs)
| Particulars | Q3 FY25 | Q2 FY25 | Q3 FY24 | 9M FY25 | 9M FY24 |
|---|---|---|---|---|---|
| Interest Income | 71,123.61 | 67,925.50 | 54,951.23 | 2,03,157.51 | 1,51,734.11 |
| Fees & Commission | 800.61 | 671.24 | 394.73 | 2,123.03 | 1,350.13 |
| Net Gain on FV Changes | 813.29 | 1,608.21 | 1,391.10 | 4,276.28 | 3,571.54 |
| Total Revenue | 72,737.51 | 70,204.95 | 56,737.06 | 2,09,556.82 | 1,56,655.78 |
| Total Expenses | 36,592.51 | 34,763.24 | 28,011.85 | 1,04,675.19 | 77,321.15 |
| Profit Before Tax | 36,512.67 | 35,820.88 | 28,990.50 | 1,05,952.22 | 80,274.89 |
| Net Profit | 27,385.90 | 26,793.70 | 21,675.71 | 79,336.60 | 59,985.52 |
| Net Profit Margin (%) | 37.67% | 38.06% | 38.16% | 37.67% | 38.06% |
| EPS (₹ per share) | Basic: 9.36 | 9.16 | 7.42 | 27.12 | 20.57 |
| Diluted: 9.35 | 9.07 | 7.37 | 26.95 | 20.38 |
Performance Analysis
- Revenue Growth: The company recorded YoY revenue growth of 28.2% in Q3 FY2025, driven by higher interest income and fee-based revenues.
- Profitability: Net profit surged 26.4% YoY for Q3 and 32.3% YoY for the nine-month period.
- Stable Asset Quality: Gross Stage 3 Assets Ratio was at 1.62%, reflecting a manageable risk profile.
- Strong Liquidity Position: Liquidity coverage ratio (LCR) stood at 366%, up from 316% in March 2024.
Corporate Announcements
- Employee Stock Option Scheme (ESOP): The company granted 25,25,000 stock options under the Five-Star Associate Stock Option Scheme, 2023, with a total outstanding ESOP count at 45,34,295 options.
- Convertible Warrants Issuance: The company allotted 4,10,000 share warrants at a premium of ₹769 per share, raising ₹3,157 lakhs.
- Secured NCDs & Security Cover: The security cover for listed Non-Convertible Debentures (NCDs) was 1.20 times.
Management Commentary
Shalini Baskaran, Company Secretary & Compliance Officer, stated:"Our strong financial performance reflects disciplined credit underwriting, operational efficiency, and a robust demand for our lending products. We continue to focus on sustainable growth while maintaining strong asset quality."
Strategic Outlook
- Expansion of lending operations across Tier 2 and Tier 3 cities.
- Continued investments in digital lending infrastructure.
- Strengthening the capital base through well-planned capital raising initiatives.