Five-Star Business Finance Ltd

The provided transcript for Five Star Business Finance Limited does not contain any specific information regarding current or expected order book or pending orders. The discussion primarily focuses on financial performance, portfolio growth, asset quality, collection efficiency, branch expansion, and regulatory impacts. There is no mention of order books or pending orders in the context of loan disbursement or any other business segment in the document.

- The company has diversified its borrowing base to 47 lenders, reducing bank borrowings from 80% to 63% as of March 2025. - In the last quarter, incremental debt of about INR 700 crores was received, with total incremental borrowings of INR 1,100 crores, at an all-inclusive cost of 9.29%. - The incremental borrowing cost has dropped by 27 basis points compared to the previous quarter. - The company expects further reduction in incremental borrowing cost by 25 to 30 basis points during the current year. - There is no explicit mention of new equity fundraising in the provided content. - Dividend payout policy indicates gradual dividends (5%-8%), suggesting capital adequacy is maintained without urgent equity raises. Overall, the focus is on managing debt cost and diversifying lenders, with no immediate plans for equity fundraising disclosed.

- Capital work in progress includes INR62 crores for construction of a new head office building, involving demolition and new construction over the next few years (Page 11). - The company plans measured growth in new states, e.g., Gujarat, with limited branches (max 4) in the first 18-24 months before scaling up further (Page 22). - Discussions are underway to organically expand into affordable housing product later in FY '26, leveraging existing branch network and resources; potential increase in opex may occur but details are early (Pages 15-16). - No immediate plans to exit any customer segments; focus on incremental shifts to higher ticket sizes in existing segments (Pages 27-28). No explicit mention of large-scale or strategic acquisitions/investments besides organic growth and the new head office building project.

- The company targets a 25% medium-term AUM (sales/volume) growth, driven by expansion in growth-inflection states like Central India and Maharashtra. - Growth will be a mix of: - ~5% productivity increase (loans per officer per month expected to rise from 2.6 to ~3) - ~5% ticket size increase (average ticket size expected to inch up by 5-6% annually) - ~15% acquisition of incremental customers via branch network expansion - Growth guidance for FY'26 is conservative due to macro-political risks and quality focus but can be raised if credit environment improves. - Earnings growth for FY'26 estimated around 12-15%, with ROA stable around 7.5-8%. - Strategy includes shifting focus gradually towards INR3-10 lakh ticket sizes, reducing emphasis on sub-INR3 lakh segment for quality enhancement. - Expansion into new states will be measured and gradual, with 18-24 months of initial cautious growth before scaling branches.

- For FY '26, earnings growth is expected to be slightly muted at 12% to 15%, reflecting 25% portfolio growth but impact of reduced yields. - ROA likely to remain stable around 7.5% to 8%, with no significant short-term increase expected. - ROE will move gradually, without sharp improvement in the near term. - Growth is driven by productivity improvements (~5%), ticket size increases (~5%), and incremental customers (~15%). - The company maintains a focus on quality over aggressive growth, with a conservative 25% AUM growth guidance for FY '26. - Credit cost guidance is 75 to 100 bps medium-term, with FY '26 expected closer to the lower end. - Dividend payouts will be gradual, expected between 5% to 8% for foreseeable future, supporting shareholder returns amid earnings growth.