DHFL slumps after dismal Q4 outcome

DHFL hit a lower circuit of 15% to Rs 58.20 at 10:32 IST on the BSE after the company announced weak Q4 March 2019 result on Saturday, 13 July 2019.

Meanwhile, the S&P BSE Sensex was up by 117.61 points, or 0.3% to 38,853.84.

On the BSE 89,000 shares were traded in the counter so far compared with average daily volumes of 23.54 lakh shares in the past two weeks. The stock had hit a high of Rs 61.65 and a low of Rs 58.2 so far during the day. It hit a 52-week high of Rs 690 on 3 September 2018 and a 52-week low of Rs 58.2 on 15 July 2019.

DHFL reported a net loss of Rs 2223.41 crore in Q4 March 2019 compared to a net profit of Rs 134.35 crore in Q4 March 2018. The company's total income rose 7.39% to Rs 3056.61 crore in Q4 March 2019 over Q4 March 2018.

The company warned that it was undergoing substantial financial stress and its ability to raise funds was substantially impaired and the business has been brought to a standstill with there being minimal/virtually no disbursements. These developments may raise a significant doubt on the ability of the company to continue as a going concern, DHFL said in notes accompanying results for the fourth quarter ending 31 March, signed by chairman and managing director Kapil Wadhawan.

In a separate announcement, the company disclosed that it has defaulted on interest payment on its non-convertible debentures (NCDs) which were due on 6 July 2019 and 8 July 2019. The total default amount is Rs 48 crore.

Dewan Housing Finance Corporation (DHFL) is a housing finance company.

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