Shares of Dewan Housing Finance fell significantly after it reported dismal results for the last quarter of FY 19. The DHFL shares slumped more than 31 per cent in the early trade on Monday to Rs 46.70 per share on BSE.
Shares of Dewan Housing Finance fell significantly after it reported dismal results for the last quarter of FY 19. The DHFL shares slumped more than 31 per cent in the early trade on Monday to Rs 46.70 per share on BSE. The shares had opened at Rs 61.65 per share against the previous close of Rs 68.45 per share on the exchange. The housing finance company posted a net loss of Rs 2,223 crore for the Jan-Mar quarter. The company in a regulatory filing said it had defaulted on the interest payments due on two non-convertible debentures.
In view of a significant slowdown in disbursement and loan growth post-September 2018, the financials of the company have been quite strained for the quarter impacting the overall performance of the year. The operating profit was Rs 372 crore for the quarter and Rs 2,378 crore for the whole year. However, due to the additional provisioning of Rs 3,280 crore, the company reported a net loss of Rs 2,223 crore for the quarter and a net loss of Rs 1,036 crore for the whole year, DHFL said in an exchange filing.
Meanwhile, DHFL also said the company is in an advanced stage of submitting its resolution process under the inter-creditor agreement as entered into by banks which will examine and firm up the terms of the resolution process by July 25, 2019, and make it operational before September 25, 2019. DHFL cautioned investors about its inability to raise funds following rating downgrades. It said its business has been brought to a standstill with there being minimal or virtually no disbursements, which may raise a significant doubt on its ability to continue as a going concern. It added it has repaid amount aggregating to Rs. 41,800 crores since September 1, 2018 part of which related to the prepayment of its liabilities.
“The company is taking active steps to monetize its assets and is in discussions with multiple Indian banks and international financial institutions to sell off its retail as well as wholesale portfolio. It is in discussions with the consortium of bankers/lenders to restructure its borrowings and will take all the necessary steps to ensure that it meets its financial commitments,” DHFL said in an exchange filing.