DHFL Q3 net profit falls 36.7 pc to Rs 314 cr

Housing finance company DHFL Friday reported a 36.7 per cent decline in its net profit to Rs 313.60 crore for the third quarter ended December 2018.

The Mumbai-based company had posted a net profit of Rs 495.44 crore in the third quarter of last fiscal.

However, total income rose to Rs 3,255.9 crore during the quarter, compared with Rs 2,896.66 crore in the corresponding quarter a year ago, DHFL said in a statement.

On the asset side, the firm's gross non-performing assets (NPA) rose to 1.12 per cent, compared with 0.96 per cent in the year-ago quarter.

Net interest margin stood at 2.91 per cent at the end of December 2018.

 

Loan book outstanding grew 15.2 per cent to Rs 96,839 crore during the quarter ended December 31, 2018, against Rs 84,028 crore in the corresponding quarter of the previous year.

Following a series of payment defaults by group companies of IL&FS towards the end of August, concerns were raised about over leveraging and liquidity crunch to meet payment obligation in other NBFCs and housing finance companies including DHFL. Their shares witnessed a huge beating on the stock exchanges.

The company said it has discharged liabilities of close to Rs 18,000 crore since September 21, 2018, including repayment of commercial papers amounting to Rs 9,965 crore till December-end.

"With this, CP outstanding has reached a level of just 1 per cent of our borrowings and we have a stronger ALM (assets and liability management) going forward. We are on our way to ensure liability coverage for the next 12 months," it said.

It further said the company has undertaken steps to sell developer loan portfolio and bring them to a level of Rs 10,000 crore by March 2019, reducing the builder book by about 50 per cent from the level existing at that point in time.

The company also initiated steps to sell non-core assets, which will be value accretive to DHFL.

"The sale of non-core assets are in the advanced stages and we expect to close a major one by January 2019. Our overall commitment is to bring in capital to the tune of Rs 2,000 crore by March 2019. Our leverage will come down from 9.27 to 7.5 times by this process," it said.