DHFL shares close 5% higher after firm reports Rs 934.35-crore profit in Q3
BusinessToday.In February 20, 2020
Share price of debt-ridden mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) hit 5% upper circuit on Thursday after the lender reported profit during the quarter ended December 2019.
DHFL share price rose nearly 5% to Rs 11.39 in early trade compared to the previous close of Rs 10.85 on BSE. Market capitalisation of the housing finance stock currently stands at Rs 357.44 crore.
Volume-wise, 1 lakh and 11.8 lakh shares changed hands on BSE and NSE, respectively. Market depth on BSE suggests only buyers bidding and no sellers offering the stock.
The stock price has risen over 19% in one week. DHFL stock price trades higher than 5-day moving averages but lower than 20, 50, 100 and 200-day moving averages.
The housing finance company which has been hit by a liquidity crunch reported a standalone net profit of Rs 934.35 crore in the third quarter of fiscal 2020 against a loss of Rs 6,705.35 crore in the same period last year, helped by a tax adjustment.
Company's total revenue from operations in Q3FY20 came in at Rs 2,431.83 crore against 3,326 crore in Q3FY19, while its total expenses fell to Rs 2,604.70 crore compared to Rs 2,860 crore in a year-ago period.
DHFL, which is facing a corporate insolvency resolution process, was admitted for insolvency proceedings on December 2. DHFL, the third-largest pure-play mortgage player, is the first non-banking financial company or housing finance company to face the corporate insolvency resolution process.
In its order on December 3, the NCLT asked the company's administrator to update the list of depositors, along with the amount payable to each of them. Following this, the administrator had reportedly asked all its fixed depositors and bondholders to file their claims by December 17. The NCLT order had also noted that the company has an outstanding unsecured loan of Rs 18,882 crore as of March 31, 2018.
The Reserve Bank of India (RBI) on November 20, superseded the board of DHFL and appointed Subramaniakumar as its administrator after it found out governance and liquidity issues at the company.
Shares of DHFL closed 0.54 points or 4.59% higher at Rs 11.39 on Thursday.