According to the reports, Dewan Housing Finance Corporation (DHFL) has posted a big loss of Rs 2,224 crore for the fourth quarter of 2018-19, which was dented by additional provisioning. As per financials record available on Moneycontrol since June quarter 1998, it was the first quarterly loss reported by the company since its inception.
The housing finance company had also reported a net profit of ₹134 crore in the corresponding period of the previous fiscal.
In a BSE filing Kapil Wadhawan, Chairman and Managing Director said, “In the backdrop 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.”
He further added that due to the additional provisioning of Rs 3,280 crore (including net loss on fair value), 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 (as against a profit of Rs 1,240 crore in previous year).
Wadhawan said, “The company is in an advanced stage of submitting its resolution process under the inter-creditor agreement as entered into by banks. As already announced, the inter-creditor agreement will examine and firm up the terms of the resolution process by 25 July 2019 and make it operational before 25 September 2019.”
He further added, “The process of identifying a strategic investor is also nearing completion which will bring in an equity investor into DHFL to bolster its capital base. The board will be reconvening in the next two weeks to look through the potential proposals and will decide accordingly on the way forward.”
According to the company, however, the operating profit for the quarter that ended in March was Rs 372 crore, down 34 percent YoY and Rs. 2,378 crore for the whole year, up 2 percent compared to FY18.
The company further said the process of identifying a strategic investor is also nearing completion, which will bring in an equity investor into DHFL to bolster its capital base.
The board will be reconvening in the next two weeks to look through the potential proposals and will decide accordingly on the way forward,” it added.
Meanwhile, the company said it has not made an interest payment of Rs 28.41 crore and Rs 19.59 crore due on July 8 and July 6 respectively.
The board of directors on July 13 also approved the appointment of Asish Saraf – Senior Vice President of the company, as the Chief Risk Officer of the company.
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