Five Star Business Finance shines bright with 37% AUM growth in Q4 but risks remain
Five Star Business Finance Ltd, a non-banking financial company (NBFC), reported strong results with a 37% year-on-year (y-o-y) growth in assets under management (AUM) for the March quarter (Q4FY23). Growth in AUM, at ₹6,915 crore, was primarily driven by a 72% y-o-y increase in loan disbursals due to branch expansion and a rise in the average ticket size of loans. The management is optimistic about maintaining growth momentum and expects over 30% AUM growth in the medium term through branch expansion. Five Star aims to add 50-60 branches annually.