Debt-laden mortgage lender DHFL, which faces corporate insolvency resolution process, has reported a consolidated net loss of Rs 6,640.62 crore for the quarter ended September 30, 2019, eroding the net worth of the company substantially.
"The beleaguered housing finance company had posted consolidated net profit of Rs 439.51 crore in the year-ago period," Dewan Housing Finance Corporation (DHFL) said in a filing to Bombay Stock Exchange.
Consolidated revenue plunged 39.5 per cent to Rs 2,106.71 crore during July-September quarter of this fiscal, as against Rs 3,483.32 crore in the year-ago period.
Total expenses of the company increased to Rs 10,098.90 crore from Rs 2,860.06 crore in the same quarter last year.
"The company is undergoing substantial financial stress since second half of the previous financial year," the management said in the filing.
The company has suffered consistent downgrades in its credit ratings since February 2019. On 5 June 2019, the credit rating was reduced to 'default grade'. "As a result, the company's ability to raise funds has been substantially impaired and the business has been brought to a standstill with there being minimal/virtually no disbursements," DHFL said.
The stressed financier was admitted for insolvency proceedings on December 2. DHFL, the third-largest pure-play mortgage player, is the first NBFC/HFC to face the corporate insolvency resolution process. The RBI, on November 20, superseded the board of DHFL and appointed Subramaniakumar as its administrator after it found out governance and liquidity issues at the company.
Reacting to earnings numbers, shares of DHFL were trading 0.92 per cent lower at Rs 16.20 apiece, against the previous closing price of Rs 16.35, on the BSE.
By Chitranjan Kumar