Beleaguered DHFL posts Rs 2,122-crore net loss in September quarter

The beleaguered Dewan Housing Finance Limited (DHFL), which is currently under the corporate insolvency resolution process (CIRP), has reported a net loss of Rs 2,122.65 crore for the quarter ended September, 2020 (Q2FY21). DHFL had reported a net loss of Rs 6,750.35 crore for the same period last financial year.
 
However, in the preceding quarter (Q1FY21), it had reported a net profit of Rs 70 crore. Total income in the July–September quarter of FY21 of the mortgage lender went up 4.33 per cent year-on-year (YoY) to Rs 2,205.90 crore, compared to Rs 2,114.17 crore in the previous financial year. The firm's total income in Q1FY21 was Rs 2,328.86 crore.

 
The company reported revenue from operations to the tune of Rs 2,204.81 crore for Q2FY21, compared to Rs 2,106.74 crore for the same period last financial year. Its net loss on fair value changes has increased significantly YoY to Rs 3,354.39 crore for Q2FY21, compared to Rs 1,188.91 crore for the same period last financial year.
 

While around 29 per cent account holders of the lender had availed moratorium as of August 2020, monthly installment from almost 76 per cent of the customers was collected in September, the first month after moratorium ended.
 
The Supreme Court in its interim order had stated that no new account that was standard as of August 2020 could be classified as non-performing. The lender has said that the total value of such accounts amounts to Rs 839.43 crore, of which Rs 651.72 crore is from the firm's wholesale portfolio.

 
“The company has classified such accounts under stage 3 and accordingly, a provision for expected credit loss/fair value loss has been made in the statement of profit and loss for the quarter and half year ended September 2020”, the company said.
 
The auditors of the company have remarked that the firm has accumulated losses exceeding the share capital and reserves and that its net worth has fully eroded. “The company’s ability to remain as a ‘going concern’ depends on the outcome of the ongoing CIRP, and we are unable to comment on whether the company will be able to continue as a going concern”, an auditor said.