Are Five-Star Bus.Fi latest results good or bad?

Five-Star Business Finance has reported its financial results for the quarter ending March 2025, showcasing notable achievements in several key metrics. The company achieved record net sales of Rs 752.27 crore, reflecting consistent growth over the last five quarters. Operating profit (PBDIT) also reached a peak at Rs 547.88 crore, indicating a strong upward trend in operational performance. Profit before tax (PBT) was reported at Rs 363.59 crore, while profit after tax (PAT) reached Rs 279.12 crore, both of which demonstrate positive growth in recent quarters. Additionally, earnings per share (EPS) stood at Rs 9.48, suggesting increased profitability for shareholders.
However, the company is facing challenges, particularly with its debt-equity ratio, which has risen to 1.26 times, the highest in the last five half-yearly periods. This increase suggests a reliance on borrowing to fund operations. Furthermore, non-operating income has reached Rs 7.48 crore, raising concerns regarding the sustainability of this income source.

In the most recent quarter ending June 2025, net sales showed a growth of 4.57% compared to the previous quarter, while standalone net profit experienced a decline of 4.59%. Operating profit margin (excluding other income) also saw a decrease, indicating some pressures on profitability. The company saw an adjustment in its evaluation, reflecting the mixed operational trends observed in the latest financial results.