Debt-ridden housing finance firm DHFL has reported a consolidated net loss of Rs 242.48 crore for the first quarter ended June of the current fiscal.
The company had posted a net profit of Rs 431.71 crore in the corresponding April-June period of 2018-19.
DHFL said the losses registered in Q1 of this fiscal were fully attributable to owners of the parent (company).
Total income of the company fell to Rs 2,399.84 crore during the three months to June 2019, as against Rs 3,154.25 crore in the year-ago period, it said in a late night regulatory filing.
DHFL said the company is undergoing substantial financial stress since the second half of the previous financial year.
The company has suffered consistent downgrades in its credit ratings since February 2019.
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"On 5th June 2019, the credit rating was reduced to default grade despite there being no default till that date. 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," the company said.
Further, the company has reached out to lenders for timely intervention and to restore the ability to carry on its business and they responded by agreeing to work on a plan under the RBI guidelines on resolution of distressed assets.
"Ability of the company to continue as a going concern may be assessed in the back drop of these developments," it added.
Based thereon, an indicative debt resolution plan has been submitted by the company which identifies liabilities of DHFL aggregating to Rs 48,826 crore, constituting 58 per cent of the total debt of DHFL, as sustainable debt, it added.
Earlier this month, leading depository CDSL had frozen shareholding of the promoters of debt-ridden mortgage lender DHFL due to delay in announcement of the company's financial earnings.
However, to which DHFL in a filing had said that the delay in submission of the financial results for first quarter by the company was on "account of resignation of the erstwhile statutory auditors and reasonable time required by the new statutory auditors to review the financial results".