Five-Star Business Finance profit rises despite credit costs

Five-Star Business Finance reported Q1 profit of INR266 crores, up 6% year-on-year but down 5% quarter-on-quarter due to higher credit costs from overleverage in small-ticket borrowers.

The company raised its full-year credit cost guidance to 1.2%-1.25% from 0.7%-1.3% previously, while maintaining growth and profit targets at 25% and 12-15% respectively.