Financial Express
 
Five-Star Business Finance has reported a 37% year-on-year increase in net profit for the first quarter at Rs 252 crore compared to Rs 184 crore in the same quarter last year.
 
The Chennai-based non-banking finance company’s total revenue from operations rose by 38% year-on-year to Rs 6,614 crore.
 
“This is a milestone quarter for Five Star as we achieved a first-time AUM crossing Rs 10,000 crore,” the company’s chairman & managing director Lakshmipathy Deenadayalan said in an earnings release. As of June 2024, the total assets of Five-Star Business Finance stood at Rs 10,344 crore, marking a 36% year-on-year growth. 
 
The company, backed by investors like Peak XV Partners (formerly Sequoia Capital) and Matrix Partners India, provides small loans for business purposes, asset creation, and other economic needs to small business customers and self-employed individuals, all secured by collateral.
 
Loan disbursements grew by 16% year-on-year to Rs 1,318 crore during the April-June quarter. “Despite a minor impact from heat and elections, the quarter saw strong momentum. We disbursed Rs 1,318 crore in loans, which is nearly consistent with the previous quarter and reflects a 16% year-on-year increase,” Deenadayalan said.
 
The company expanded its branch network by 27, bringing the total to 547 branches across nine states and one union territory, including Tamil Nadu, Andhra Pradesh, Telangana, Karnataka, Madhya Pradesh, and Maharashtra.
 
The ratio of gross stage 3 assets, or loans overdue for more than 90 days, remained steady at 1.41% at the end of the June 2024 quarter.