DHFL reports net profit of Rs 96.75 crore in Q4

Our Bureau Mumbai | Updated on June 06, 2021

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Total income declines to Rs 2,060.57 crore

Dewan Housing Finance Corporation Ltd reported a consolidated net profit of Rs 96.75 crore for the fourth quarter of 2020-21 as against a net loss of Rs 7,507.01 crore a year ago.

For the full fiscal 2020-21, it had a consolidated net loss of Rs 15,051.17 crore compared to a net loss of Rs 13,455.81 crore in 2019-20.

For the quarter ended March 31, 2021, DHFL reported a 22.4 per cent drop in its total revenue from operations at Rs 2,034.53 crore versus Rs 2,623.40 crore a year ago.

Total income also declined to Rs 2,060.57 crore for the fourth quarter last fiscal from Rs 2,160.98 crore a year ago.

“...the company has not made any provision for interest on borrowings amounting to Rs 1,91,213 lakh and Rs 7,65,155 lakh for the quarter and year ended on March 31, 2021, respectively, in view of the company's current Corporate Insolvency Resolution Process (CIRP),” said the results.

Had the interest was accrued on borrowings and provided for, the profit for the quarter ended March 31, 2021 would have been lower by Rs 1,42,205 lakh (net of taxes) and the loss for year ended March 31, 2021 would have been higher by Rs 5,69,046 lakh respectively (net of tax), it further said.

As on March 31, 2021, it had a negative net worth of Rs 20,645.31 crore. Total assets amounted to Rs 70,358.66 crore while total liabilities stood at Rs 91,003.97 crore.

The investments and advance by way of unsecured Inter Corporate Deposit (ICD) including interest receivable aggregating Rs 4,109.24 crore are outstanding as on March 31, 2021. The provision for the entire ICD amount has been made due to lack of security.

Noting that DHFL has accumulated losses due to which its net worth has been fully eroded, the auditor’s note said that its ability to remain as a "going concern" depends on the outcome of the ongoing CIRP.

“During this quarter ended on March 31, 2021, additional transactions amounting Rs 12,73,574 lakh have been identified and reported by the company to Stock Exchanges and National Housing Bank and RBI as fraudulent, undervalued and preferential in nature,” it further said.

Published on June 06, 2021

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