Five-Star Business Finance Limited — Updates, 31-01-2025: Press Release

**Financial Highlights:** Five-Star Business Finance Limited reported a total income of ₹731 Crore, reflecting a 28% year-on-year growth. Profit After Tax (PAT) rose 26% to ₹274 Crore, with Return on Assets (ROA) at 8.10% and Return on Equity (ROE) at 18.49%, showcasing strong profitability. Assets Under Management (AUM) stood at ₹11,178 Crore, up 25% year-on-year.

**Strategic Initiatives and Growth Drivers:** The company expanded its branch network to 729, opening 69 new branches, enhancing its service reach across 10 states and 1 Union Territory. Continued focus on collections led to a collection efficiency of 98%, with unique customer collections at 96.7%.

**Business Developments:** Total borrowings, including debt securities, reached ₹7,362 Crore, with liquidity at ₹2,145 Crore. The cost of funds stabilized at 9.63%.

**Market Position and Competitive Advantage:** Despite challenges in the financial sector, the company maintained robust asset quality, with Gross NPA at 1.62%. This reflects solid underwriting standards and a strategic focus on collections.

**Investor Implications:** The positive trends in income and asset growth, alongside effective expansion strategies and solid collections, signal potential growth for investors even within a challenging market landscape. Investors should remain focused on the company's ability to navigate sector challenges while upholding asset quality standards.