Five-Star Business Finance reported 28% rise in net profit to Rs 151 crore on a 22% increase in total inceomt to Rs 388.7 crore in Q3 FY23 over Q3 FY22.
Net Interest Income (NII) for the period under review was Rs 325.6 crore, up 33% YoY. Net Interest Margin was 13.79% in Q3 FY23 as compared with 13.46% in Q3 FY22.
Loan losses & Provisions amounted to Rs 47 crore in Q3 FY23 as against Rs 153 crore in Q3 FY22.
Profit before tax in Q3 FY23 stood at Rs 201.5 crore, up by 29% from Rs 156.8 crore in Q3 FY22.
Overall stage-2 assets stood at Rs 664.8 crore (10.65%) as of 31 December 2022 as against Rs 862.2 crore (18.09%) as of 31 December 2021 and Rs 714.7 crore (12.47%) as of 30 September 2022.
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Concurrently, stage-3 assets amounted to Rs 90.7 crore (1.45%) as of 31 December 2022 as against Rs 60.6 crore (1.27%) as of 31 December 2021 and Rs 66 crore (1.15%) as of 30 September 2022.
The Provision coverage on Stage-3 assets stood at 44.78% and the provision coverage on the overall portfolio stood at 1.66%.
The company recorded net QoQ AUM growth of Rs 510 crore in Q3FY23 as against Rs 128.3 crore in Q3 FY22. AUM was up 31% YoY at Rs 6,242.4 crore as against Rs 4,767.6 crore as of 31 December 2021.
Disbursements during the quarter was at Rs 910.3 crore as against Rs 426 crore during Q2 FY22.
Active loans at almost 0.27 million as against 0.20 million as of 31 December 2021. The company continued to have a robust collection efficiency of 100.1% during the quarter.
During 9M FY23, the company has raised incremental debt of Rs 1,692.7 crore, at a weighted average rate of interest of 8.69% (all-inclusive cost of 8.94% on fresh borrowings raised during this period). Liquidity buffer as of 31 December 2022 stood at about Rs 1,013 crore.
Capital adequacy remained high at 68.03% as of 31 December 2022.
Lakshmipathy Deenadayalan, chairman & managing director, Five-Star Business Finance, said: Five Star witnessed another good quarter in Q3 with both business and collections momentum being robust. During 9MFY2023, we disbursed Rs 2,281 crores registering a growth of 105% year on year. We added 69 branches during 9MFY2023 resulting in a strong branch network of 369 branches to deliver quality service to our customers.
During the quarter, the company has been assigned a rating of AA- by India Ratings, which is also a testimony to the company's strength.
Five-Star Business Finance is a non-banking finance company. It has a network of 369 branches catering to around 270,000 active live accounts in Tamil Nadu (including the Union Territory of Puducherry), Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, Maharashtra, Uttar Pradesh and Chattisgarh. The company primarily offers small loans for business purposes, asset creation and other economic purposes to micro-entrepreneurs and self employed individuals after due underwriting of their cashflows and backed by the collateral of their house property.
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