Moneycontrol
Last Updated : Nov 21, 2018 03:11 PM IST | Source: Moneycontrol.com

DHFL Q2 profit jumps 53% to Rs 439 cr despite higher provisions

DHFL said provision for expected credit loss increased 46.6 percent sequentially and 20 percent year-on-year to Rs 132.74 crore in the quarter ended September 2018.

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Dewan Housing Finance Corporation has reported a massive 52.55 percent year-on-year growth in second quarter profit to Rs 438.7 crore despite sharp rise in provisions and liquidity crisis.

The housing finance company had posted profit at Rs 287.8 crore in same period last year.

Revenue from operations during the quarter grew by 33.8 percent to Rs 3,515.7 crore compared to Rs 2,627.9 crore in corresponding period last fiscal.

DHFL said provision for expected credit loss increased 46.6 percent sequentially and 20 percent year-on-year to Rs 132.74 crore in the quarter ended September 2018.

Gross non-performing assets as a percentage of gross advances increased to 0.96 percent in Q2FY19 against 0.93 percent in previous quarter.

Net interest margin in second quarter contracted to 3.15 percent against 3.44 percent reported in June quarter.

Assets under management at the end of September quarter stood at Rs 1.3 lakh crore, which increased 38 percent year-on-year and 7.6 percent sequentially.

Company's disbursements at Rs 13,870 crore increased 39 percent compared to year-ago and 2.1 percent quarter-on-quarter.

Tax expenses during the quarter increased sharply by 83 percent to Rs 194.1 crore compared to year-ago.

DHFL said the company has secured non-convertible debentures (NCDs) worth Rs 219 crore which are due for payment of principal on November 21, 2018 and NCDs worth Rs 511 crore are due on November 25.

Secured NCDs worth Rs 9 crore are due on January 14, 2019 and NCDs worth Rs 16.5 crore due on March 19, 2019, it added.

At 14:12 hours IST, the stock was quoting at Rs 234.30, up Rs 9.25, or 4.11 percent on the BSE.

The stock crashed 65 percent in last three months especially after IL&FS-led liquidity crisis in non-banking finance companies including housing finance companies. Consistent default of interest payment by IL&FS to bondholders forced DSP Mutual Fund, which has a significant amount of IL&FS' debt on its books, to sell DHFL's AAA rated commercial papers at a steep discount to maintain cash levels.
First Published on Nov 21, 2018 02:20 pm
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