Dewan Housing Finance Corporation (DHFL) has posted a big loss of Rs 2,224 crore for the quarter ended March 2019, which was dented by additional provisioning.
It was the first quarterly loss reported by the company since its inception, as per financials record available on Moneycontrol since June quarter 1998.
The stock had lost nearly 89 percent of its value in the last one year. It was trading at Rs 615.55 a year ago, and it is at Rs 68.45 as of July 12, 2019.
The housing finance company had reported a profit of Rs 314 crore in the December quarter and Rs 134 crore in the June quarter of last year.
“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,” Kapil Wadhawan, Chairman and Managing Director said in a BSE filing.
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), he added.
DHFL posted a net loss on its fair value change at Rs 2,550.17 crore for the quarter and Rs 2,458.4 crore for the whole year.
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 said.
Asset quality worsened during the quarter as gross non-performing assets (NPA) increased significantly to 2.74 percent, as against 1.12 percent in previous quarter and 0.96 percent in March quarter 2018.