DHFL swings to ₹242 crore loss in Q2
NEW DELHI: Debt-ridden housing finance firm Dewan Housing Finance Corp. Ltd (DHFL) on Thursday reported a consolidated net loss of ₹242.48 crore for the second quarter of the current fiscal.
The company had posted a net profit of ₹431.71 crore in the corresponding July-September period of FY19.
DHFL said the losses registered in second quarter of this fiscal were fully attributable to owners of the parent (company).
Total income of the company fell to ₹2,399.84 crore during the three months to September, as against ₹3,154.25 crore in the year-ago period, it said in a regulatory filing.
The Central Depository Services had frozen DHFL’s promoter shareholding after the company did not report results for the first quarter of FY20 in the stipulated time.
“The Company is undergoing substantial financial stress since (the) second half of the previous financial year,” the management said.
It said a rating downgrade to “default” earlier this year had hit the company’s ability to raise funds and lending operations.
Bankers have said DHFL owes almost ₹1 lakh crore as debt to banks, mutual funds and insurance companies.
The banks are working on a resolution plan to restructure the loans given to DHFL to ensure it survives.
The proposed plan involves conversion of debt into equity for lenders and also includes giving
CATALYST TRUSTEESHIP ON BEHALF OF NCD HOLDERS OF DHFL HAS MOVED THE DEBT RECOVERY TRIBUNAL AGAINST THE COMPANY
them a 51% stake in the company.
The lenders are likely to vote on the resolution plan soon, Rajkiran Rai, chief executive officer of Union Bank, said on Wednesday, without providing a time frame.
Meanwhile, Catalyst Trusteeship Ltd on behalf of non-convertible debenture (NCD) holders of DHFL has moved the debt recovery tribunal (DRT) against the company.
In an official statement issued on Thursday, the debenture trustee said they have filed a case against the company seeking claims worth ₹26,861 crore.
The stressed housing finance company defaulted on four public issue NCDs on Wednesday. Catalyst, which is a trustee to 34 issues of debentures, initiated the process of filing the application with the DRT last month.
On Thursday, Kotak Asset Management Co. and Axis Asset management Co. moved the Bombay high court seeking directions to DHFL to disclose all its assets and liabilities.
The petitioners also prayed for a temporary restraint on DHFL to prevent it from making further payments/disbursements to secured and unsecured creditors except certain payments made on a pro-rata basis to secured creditors.