Five-star Business Finance Limited · NSE:FIVESTAR
Five-star Business Finance — Q4 FY2025 Earnings Presentation
59 slides from Five-star Business Finance's earnings presentation, Apr 29, 2025
Slide 1: Stock exchange filing cover letter
Date: April 29, 2025 The National Stock Exchange of India Limited, BSE Limited Exchange Plaza, Listing department, Bandra-Kurla Complex, First floor, PJ Towers, Bandra (E), Mumbai 400 051 Dalal Street, Fort Mumbai 400 001 Symbol: FIVESTAR Scrip code: 543663 Sub: Investor Presentation on the audited
Slide 2: Reaching the Unreached - Investor Presentation Q4FY2025
Reaching the Unreached Five-Star Business Finance Limited Investor Presentation | Q4FY2025 STRICTLY PRIVATE AND CONFIDENTIAL
Slide 3: Safe Harbour
Safe Harbour Five-Star Business Finance Limited | Investor Presentation – Q4FY25 This presentation and the accompanying slides (the “Presentation”) which have been prepared by Five-Star Business Finance Limited (the “Company”) have been prepared solely for information purposes and do not constitute
Slide 4: Glossary
Glossary Five-Star Business Finance Limited | Investor Presentation – Q4FY25 ▪ All amounts are given in ₹ Million unless specified otherwise. ▪ Gross NPA or Gross Stage 3 assets represents loans which are more than 90 days past due (till the quarter ended Sep 2022); for the quarters post Sep 2022, t
Slide 5: Presentation Path
Presentation Path Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Executive Summary SECTION 1 SECTION 2 Business Updates Asset Quality & ECL SECTION 3 SECTION 4 Liability & ALM Financial Statements SECTION 5 SECTION 6 Company Overview 4
Slide 6: Executive Summary
EXECUTIVE SUMMARY
Slide 7: Executive Summary | Q4FY25
Executive Summary | Q4FY25 Five-Star Business Finance Limited | Investor Presentation – Q4FY25 q-o-q y-o-y Branches Loan Disbursement Loan Portfolio 748 ₹ 14,599 Mn ₹ 118,770 Mn +19 +228 +55% +9% +6% +23% Gross NPA 30+ DPD Profit After Tax 1.79% 9.65% ₹ 2,791 Mn +17 bps +41 bps +49 bps +1.76% +2% +1
Slide 8: Executive Summary | FY25
Executive Summary | FY25 Five-Star Business Finance Limited | Investor Presentation – Q4FY25 y-o-y Branches Loan Disbursement Loan Portfolio 748 ₹ 49,697 Mn ₹ 118,770 Mn +228 +2% +23% Gross NPA 30+ DPD Profit After Tax 1.79% 9.65% ₹ 10,725 Mn +41 bps +1.76% +28% Net Interest Margin Return on Assets
Slide 9: Q4FY25 Performance – At a glance
Q4FY25 Performance – At a glance Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Scale of Distribution Granular Book Asset Quality Liability Profile Profitability Operations ₹118.8bn / ₹96.4bn 748 100% Secured 1.79% 47 ₹2.8bn / ₹2.4bn AUM in Q4FY25 / Q4FY24 Number of Branches Loa
Slide 10: Last 10-years Financial Snapshot
Last 10-years Financial Snapshot Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Particulars (₹ Mn) FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025 I-GAAP I-GAAP I-GAAP IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS IND-AS Operational Information Number of branch
Slide 11: Distinguished Board of Directors
Distinguished Board of Directors Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Promoter Director Lakshmipathy Deenadayalan Chairman & Managing Director Independent / Non- Executive Directors Anand Raghavan T T Srinivasaraghavan Bhama Krishnamurthy Select other Directorships Shr
Slide 12: Profile of Board of Directors
Profile of Board of Directors Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Anand Raghavan T T Srinivasaraghavan Lakshmipathy Deenadayalan Independent / Non-Executive Director Independent / Non-Executive Director Chairman & Managing Director Chairperson – Audit Committee Chairp
Slide 13: Experienced Management Team
Experienced Management Team Five-Star Business Finance Limited | Investor Presentation – Q4FY25 22 22 21 9 22 9 22 7+ Lakshmipathy Deenadayalan Rangarajan Krishnan Srikanth Gopalakrishnan Vishnuram Jagannathan Chairman & MD JMD & CEO JMD & CFO Chief Operating Officer Education: Bachelor of Engineeri
Slide 14: Business Updates
BUSINESS UPDATES
Slide 15: Business Updates (1/2)
Business Updates (1/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Operations 1. Net Q-o-Q AUM growth of ₹6,989 Mn in Q4FY25 as against ₹7,098 Mn in Q4FY24. AUM was up 23% Y-o-Y at ₹118,770 Mn as of March 31, 2025 as against ₹96,406 Mn as of March 31, 2024. 2. Disbursements d
Slide 16: Business Updates (2/2)
Business Updates (2/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Liabilities 1. In Q4FY2025, the company received sanctions for incremental debt of ₹7,000 Mn, availing ₹11,000 Mn (inclusive of some unavailed sanctions from previous quarters), at a weighted average rate of 9
Slide 17: Balance Sheet Indicators
Balance Sheet Indicators Five Star Business Finance Limited | Investor Presentation – Q4FY25 Quarterly Data Last 5 years data All amounts in ₹ Mn Disbursements AUM Net Worth Disbursements 23% 48,814 49,697 9% 21% 1,18,770 63,046 14,599 1,11,781 60,171 33,914 13,364 96,406 51,962 9,408 17,562 6% 5% 1
Slide 18: P&L Indicators
P&L Indicators Five Star Business Finance Limited | Investor Presentation – Q4FY25 Quarterly Data Last 5 years data All amounts in ₹ Mn Income Interest Expense Other Expenses Income 23% 28,660 (27%) (26%) 7,311 7,597 1,879 21,951 1,714 1,753 1,713 6,191 1,488 15,289 1,377 12,562 10,513 (2%) (10%) 4%
Slide 19: Consistent & Best-in-class Spreads
Consistent & Best-in-class Spreads Five Star Business Finance Limited | Investor Presentation – Q4FY25 Portfolio Yield Cost of borrowing Spread 24.50% 24.24% 24.22% 24.18% 12.00% 25.00% 14.00% 24.19% 24.50% 24.18% 24.17% 24.23% 24.27% 13.50% 24.00% 23.98% 24.05% 11.50% 23.70% 24.00% 24.03%13.00% 23.
Slide 20: Well-diversified portfolio cuts
Well-diversified portfolio cuts Five Star Business Finance Limited | Investor Presentation – Q4FY25 AUM by Geography AUM by Ticket Size Q4FY25 2% 1% Q4FY24 Q4FY25 1% 0% Q4FY24 1% 0% 7% 5% 13% 6% 11% 6% 29% 31% 32% 37% ATS for ATS for 20% 19% Q4FY25 Q4FY24 3.86L 3.50L 51% 53% 38% 37% TN AP TS KA MP O
Slide 21: Asset Quality & ECL
ASSET QUALITY & ECL ' weil
Slide 22: Asset Quality Indicators (1/2)
Asset Quality Indicators (1/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Collections Efficiency (%) 30+ (%) 9.16 9.65 8.11 8.44 7.89 1.62 1.79 1.41 1.47 1.38 99.5 97.8 98.5 97.2 98.4 97.0 98.0 96.7 97.7 6.98 7.54 7.87 96.2 6.51 6.71 Mar'24 Jun'24 Sep'24 Dec'24 Mar'25 Mar'24
Slide 23: Asset Quality Indicators (2/2)
Asset Quality Indicators (2/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Amount in ₹ Mn As at Mar 2025 As at Dec 2024 As at Mar 2024 Bucket AUM % AUM AUM % AUM AUM % AUM Current (Stage-1) 100,097 84.28% 94,922 84.92% 84,247 87.39% 1-30 (Stage-1) 7,209 6.07% 6,620 5.92% 4,55
Slide 24: ECL Provisioning
ECL Provisioning Five Star Business Finance Limited | Investor Presentation – Q4FY25 Amount in ₹ Mn As of March 31, 2025 Stage 1 Stage 2 Stage 3 Total Loans Outstanding (Gross) 107,306 9,342 2,123 118,770 ECL Provision 367 477 1,089 1,933 Loans Outstanding (Net) 106,939 8,865 1,034 116,837 ECL Provi
Slide 25: Lag NPA
Lag NPA Five Star Business Finance Limited | Investor Presentation – Q4FY25 Amount in ₹ Mn Q4FY2025 Q4FY2024 Q4FY2023 Q4FY2022 Loan Portfolio 118,770 96,406 69,148 50,671 Gross Stage 3 assets 2,123 1,328 939 531 Gross Stage 3 assets % 1.79% 1.38% 1.36% 1.05% Gross Stage 3 assets % - 1 year Lag 2.20%
Slide 26: Liability & ALM
LIABILITY & ALM
Slide 27: Well-diversified Liability Franchise (1/2)
Well-diversified Liability Franchise (1/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Liability franchise consists of a strong set of lenders who can support the company’s plans Number of lenders Lenders to the Company 11 Select Public State Bank of India | Bank of Baroda |
Slide 28: Well-diversified Liability Franchise (2/2)
Well-diversified Liability Franchise (2/2) Five Star Business Finance Limited | Investor Presentation – Q4FY25 Diversified borrowing mix across lender category and product category Borrowing exposure and Cost of borrowing Borrowings 42,473 43,167 48,193 57,911 63,158 67,239 68,795 73,625 79,220 outs
Slide 29: Cashflow Position as of Mar’25 – Cumulative
Cashflow Position as of Mar’25 – Cumulative Five Star Business Finance Limited | Investor Presentation – Q4FY25 No Cumulative mismatches in any of the time buckets Particulars Up to 1M 1-2 M 2-3 M 3-6 M 6M – 1Y 1-3 Y 3-5 Y >5 Y Opening Liquidity 24,344 23,752 24,042 23,315 22,894 22,796 24,301 46,86
Slide 30: Strong Liquidity Position as of Mar’25
Strong Liquidity Position as of Mar’25 Five Star Business Finance Limited | Investor Presentation – Q4FY25 Amount in ₹ Mn Liquidity buffer as of Mar 2025 Unencumbered cash & cash equivalents 22,949 Unavailed sanction from banks / FIs 1,000 Total Liquidity 23,949 Projected Cashflow Schedule Q1FY26 Q2
Slide 31: Financial Statements
FINANCIAL STATEMENTS
Slide 32: Balance Sheet
Balance Sheet Five Star Business Finance Limited | Investor Presentation – Q4FY25 Particulars (₹ Mn) Q4FY2025 Q4FY2024 Q3FY2025 Assets Cash & Cash equivalents 14,972 15,344 14,271 Bank balances other than cash & cash equivalents 6,580 1,373 3,347 Loans 116,868 96,852 112,330 - Loan portfolio 118,770
Slide 33: Profit & Loss Account
Profit & Loss Account Five Star Business Finance Limited | Investor Presentation – Q4FY25 Particulars (₹ Mn) Q4FY2025 Q4FY2024 Q3FY2025 Y-o-Y Q-o-Q FY2025 FY2024 Y-o-Y Loan Portfolio 118,770 96,406 111,781 23% 6% 118,770 96,406 23% Interest Income (1) 7,347 5,992 7,112 23% 3% 27,663 21,166 31% - Int
Slide 34: RoE Tree
RoE Tree Five Star Business Finance Limited | Investor Presentation – Q4FY25 Particulars Q4FY2025 Q4FY2024 Q3FY2025 FY2025 FY2024 Interest Income (as a % of average portfolio) 23.70% 24.19% 23.98% 24.03% 24.27% Interest Expenses (as a % of average borrowings) 9.63% 9.64% 9.63% 9.64% 9.71% Net Intere
Slide 35: Company Overview
COMPANY OVERVIEW
Slide 36: Our Journey
Our Journey Five-Star Business Finance Limited | Investor Presentation – Q4FY25 2023 2005 – 2015 373 branches; ₹69bn AUM AA- rating BUILDING & Listing on the bourses STRENGTHENING PHASE 2020 252 branches; ₹39bn AUM Post COVID, back to A rating quality growth Strong portfolio growth 2014 Marquee PE i
Slide 37: Who we are
Who we are Five-Star Business Finance Limited | Investor Presentation – Q4FY25 NBFC providing secured financial solutions to Small Business customers and Self-employed Individuals who are largely cut-off from formal lending ecosystem Deep understanding of customer behavior and strong knowledge of ma
Slide 38: Current Shareholding
Current Shareholding Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Institutional Promoters Top Institutional Investors* (ex-PE and Promoter) Others 2.86% Investor name % stake** Individual Promoter 10.07% 18.38% Fidelity Investments 6.86% & Promoter Group AIF & QIB 3.39% Wasatc
Slide 39: Growth Opportunity & Levers (1/2)
Growth Opportunity & Levers (1/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Large Market Opportunity to be served through multiple growth levers Large Market Opportunity Five Star Growth Strategy Fiscal 2024E MSME Credit Gap To address the large untapped market opportunity
Slide 40: Growth Opportunity & Levers (2/2)
Growth Opportunity & Levers (2/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Growth Strategy shall be borrower led coupled with appropriate increase in ticket size 5,00,000 0.28 4,60,756 4,50,000 0.27 0.27 4,00,000 3,85,966 96.29% 0.26 0.26 3,50,000 0.25 84.22% COVID years w
Slide 41: Customer & Product
Customer & Product Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Well thought out customer & product strategies – helps us remain insulated even during periods of stress Customer Strategy Product Strategy Who are our customers – Small Business Owners and Self- Loan purpose – Lo
Slide 42: Distribution
Distribution Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Gradual growth in newer regions; significant ramp-up upon reaching the comfort state 748 branches | 11 States / UT State-wise portfolio break-up Normal branches – 600; Split branches – 148 No of State Q4FY25 FY24 FY23 F
Slide 43: Cluster Strategy – Ideal Branch Structure
Cluster Strategy – Ideal Branch Structure Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Evolution of Branch Structure at Five-Star Till FY2016 2017 – 2023 2023 till date… Normal Branch Strategy Super Branch Strategy Cluster / Ideal Branch Strategy 5-6 Relationship Officers Add
Slide 44: Robust Proprietary Underwriting (1/2)
Robust Proprietary Underwriting (1/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Underwriting strategy fine-tuned over years of experience – to serve a “not so easy to underwrite TAM” Difficulties in evaluating the Addressable Market Segment Five Star’s capabilities Credit a
Slide 45: Robust Proprietary Underwriting (2/2)
Robust Proprietary Underwriting (2/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Multiple levels of appraisal – Final sanction can be provided only by the Independent Credit team Branch Appraisal Credit Appraisal Pre-login assessment by the branch – Basic verification of Fie
Slide 46: Strong on-ground Collections infrastructure (1/2)
Strong on-ground Collections infrastructure (1/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 First-time business loan borrowers migrating from informal to formal ecosystem necessitates multiple touchpoints On-ground team Typical Recovery Process at Five Star – Parties involv
Slide 47: Strong on-ground Collections infrastructure (2/2)
Strong on-ground Collections infrastructure (2/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Focus on Unique Customer Collections Efficiency has contributed to significant improvement in portfolio profile Current Portfolio 30+ Portfolio 83.51% 87.39% 16.78% 74.17% 76.26% 71.
Slide 48: Technology Strategy (1/3)
Technology Strategy (1/3) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Robust investments in technology to efficiently manage the lending process, increase productivity and decrease costs ▪ Manual underwriting process with minimal Till FY2017 technology involvement ▪ Moved to
Slide 49: Technology Strategy (2/3)
Technology Strategy (2/3) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Comprehensive Tech stack to derive productivity and efficiency benefits Loan Origination & Underwriting Loan Servicing & Support Systems Reporting / MIS Loan Management Collections ML Models Customer Self S
Slide 50: Technology Strategy (3/3)
Technology Strategy (3/3) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Focused tech strategy / stack have helped achieved key benefits across functional verticals Loan Origination Credit Underwriting Collections ▪ Consistently improving TAT ▪ Fully rounded view of the borrower
Slide 51: Risk Management & Audit (1/2)
Risk Management & Audit (1/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Robust Risk Management and Risk-based Internal Audit Framework ensure strong oversight Board of Directors Risk Management Committee Audit Committee ALCO Credit Committee Business Resource Statutory Audi
Slide 52: Risk Management & Audit (2/2)
Risk Management & Audit (2/2) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Robust Risk Management and Risk-based Internal Audit Framework ensure strong oversight Risk Management Framework Risk based Internal Audit Framework Credit / Collateral / Portfolio Risk Strong framework
Slide 53: ESG @ Five Star (1/5)
ESG @ Five Star (1/5) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 ESG @ Five Star primarily revolves around the aspects of “S” (Social impact) and “G” (Governance) Business Responsibility and Comprehensive ESG and Comprehensive External Sustainability Report (BRSR) BRSR polic
Slide 54: ESG @ Five Star (2/5)
ESG @ Five Star (2/5) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Social Impact Indicators – Financial Inclusion (“Reaching the Unreached”) Company Vision Reaching the Unreached through suitable credit solutions Mission Statement Provide appropriate credit solutions to the hi
Slide 55: ESG @ Five Star (3/5)
ESG @ Five Star (3/5) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Social Impact Indicators – Branch Presence Significant Branch presence in Tier 3 to Tier 6 towns - semi-urban and fast-growing Branch Presence • Significant branch presence in Tier 3 to Tier 6 towns rural geogr
Slide 56: ESG @ Five Star (4/5)
ESG @ Five Star (4/5) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Strong Governance Framework Board of Directors 1 4 2 1 Promoter Director Independent Directors Executive Directors Non-Executive Director (including 1 Woman Director) Board Risk Management Nomination & Stakehol
Slide 57: ESG @ Five Star (5/5)
ESG @ Five Star (5/5) Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Robust Corporate Governance supported by Board approved Policies The Board of Directors helps improve Corporate visibility, image and governance and provides strong comfort to external stakeholders. The Board a
Slide 58: Strong Human Capital
Strong Human Capital Five-Star Business Finance Limited | Investor Presentation – Q4FY25 Strong & adequate Human Capital for the size and scale of operations Function No of employees Proportion of Headcount – Branch vs HO Business & Collections 8,227 4% - Relationship Officers 6,689 - Branch Manager
Slide 59: Thank You
Five Star Business Finance Limited | Investor Presentation – Q1FY25 Thank You For further information, you may please email to: ir@fivestargroup.in
Five-Star Business Finance — Q4 FY2025 Earnings Presentation on 6ix