DHFL snaps 2-day losing streak

DHFL rose 4.64% to Rs 50.75 at 15:18 IST on BSE on bargain hunting after a recent slump.

Meanwhile, S&P BSE Sensex was up 230.89 points or 0.59% at 39,127.60.

On BSE, 53.75 lakh shares were traded in DHFL counter, compared to a 2-week average of 27.94 lakh shares. The share price hit an intraday high of Rs 51.80 and a 52-week intraday low of Rs 44.45 today. It hit a 52-week high of Rs 690 on 3 September 2018.

Shares of Dewan Housing Finance Corporation (DHFL) crashed by 31.92% in the past two trading sessions to settle at Rs 48.50 yesterday, 15 July 2019, from its close of Rs 71.25 on 11 July 2019.

DHFL slumped 29.15% to end at Rs 48.50 yesterday, 15 July 2019, due to dismal Q4 results. DHFL reported a net loss of Rs 2,223.41 crore in Q4 March 2019 as compared to a net profit of Rs 134.35 crore in Q4 March 2018. Total income rose 7.4% to Rs 3,056.61 crore in Q4 March 2019 over Q4 March 2018. The result was announced on Saturday, 13 July 2019.

DHFL 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 during market hours yesterday, 15 July 2019, DHFL clarified that it remains a strong going entity. The company said that some of the media have used select portions of our statement and created panic/ confusion especially regarding the statement on the going concern. It urged that the entire statement be read in entirety, so that the news is factual and not sensationalized. While the sectorial stress is well known for months, DHFL has withstood intense pressure and continues to remain strong and solvent. DHFL has also cleared significant amount of obligation to the tune of Rs 41,800 crore since September 2018, it added.

DHFL provides access to affordable housing finance to lower and middle income families in semi-urban and rural India.

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