Five-Star Business Finance Ltd, a non-banking finance company, has reported that its annual profit after tax (PAT) has crossed the ₹1,000-crore mark in FY25.
The Chennai-headquartered company’s PAT grew by 28 per cent to ₹1,073 crore, compared with ₹836 crore in FY24.
“To commemorate this achievement, the Board has recommended a dividend of ₹2 per share, which translates to 200 per cent on the face value and a dividend payout of 5.5 per cent. I would also like to assure that this will not have any major impact on our capital adequacy or our future capital requirements,” said D Lakshmipathy, Chairman & Managing Director of the company, in a statement.
The company reported an 18 per cent increase in PAT to ₹279 crore for the quarter ended March 31, 2025, compared with ₹236 crore in the corresponding quarter of the previous year.
In Q4FY25, interest income grew by 23 per cent to ₹735 crore (from ₹599 crore), while for FY25, interest income rose 31 per cent to ₹2,766 crore (from ₹2,117 crore). Net interest income grew to ₹2,198 crore in FY25 from ₹1,727 crore in FY24.
Disbursements for the March 2025 quarter grew by 9 per cent to ₹1,460 crore (from ₹1,336 crore), while for FY25, disbursements reported a marginal increase to ₹4,970 crore from ₹4,881 crore in FY24.
A good quarter
“Q4 was a good quarter, and the most notable development was that we were back on track with our disbursements, recording a quarter-on-quarter growth of 55 per cent. We had consciously slowed down disbursements last quarter to achieve an AUM growth of 25 per cent, and we were able to realign disbursements this quarter. Our portfolio grew by 6 per cent quarter-on-quarter and 23 per cent for the full year. The disruption in Karnataka due to the ordinance caused us to pause disbursements in the State, leading to a shortfall in growth for the full year,” Lakshmipathy added.
The company added 19 branches during Q4FY25, bringing the total to 748 branches across 10 States and one union territory.
In the March 2025 quarter, the company availed incremental debt of ₹1,100 crore, with the cost of this debt at 9.29 per cent — 27 basis points lower than the cost of incremental debt in the previous quarter. The overall cost of funds remained nearly flat at 9.63 per cent for the quarter. “In addition to unavailed sanctions of ₹100 crore, we continue to maintain robust liquidity on the balance sheet, with ₹2,295 crore,” Lakshmipathy said.
Published on April 29, 2025
