INSUBCONTINENT EXCLUSIVE:
New Delhi: 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 ILFS 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.
