Shares of Dewan Housing Finance Corporation (DHFL) have tanked 29 per cent at Rs 49, hitting 10-year low on the BSE on Monday in intra-day trade, after the company reported a standalone net loss of Rs 2,223 crore for the quarter ending March 2019 (Q4F19), owing to higher provisioning. The non-banking finance company had posted net profit of Rs 134 crore in the same quarter last fiscal.
The stock was trading at its lowest level since May 20, 2009 on the BSE. At 11:04 am, the stock was trading 26 per cent lower at Rs 51, as compared to unchanged in the S&P BSE Sensex at 38,738 points. A combined 20.5 million changed hands on the counter on the NSE and BSE.
The company’s net interest income (revenue from operations minus interest expenses) decreased 15 per cent to Rs 704 crore from Rs 829 crore in the corresponding quarter of the previous year.
DHFL said, in the backdrop of a significant slowdown in disbursement and loan growth post September 2018, the financials of the company have been quite strained for the quarter impacting the overall performance of the year.
Due to the additional provisioning of Rs 3,280 crore (inclusive net loss on fair value), the company reported a net loss of Rs 2,223 crore for the quarter and net loss of Rs 1,036 crore for the whole year, it added.
DHFL said in notes accompanying results for Q4FY19, 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," it added.
DHFL separately announced on Saturday it had defaulted on interest payments worth Rs 48 crore on non-convertible debentures (NCDs), due on July 6 and July 8.