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DHFL Cautions It May Not Sustain As A Going Concern

Roshni Agarwal

The country's leading housing finance company DHFL on Saturday while reporting its January-March quarter results warned that its financial condition had been so stressful that it may not sustain as a going concern.

In a statement to the exchanges, the company said it has missed on interest payments due to investors who held the company's NCDs to be made on July 6 and July 8 worth Rs. 48 crore. Earlier, in June the company stalled repayments twice, first on June 5, wherein it managed to make the repayment of its dues within 7 days, and then it again defaulted on June 25.

The company is currently reeling under a severe liquidity crisis situation that gripped the housing finance major last year.

Currently lenders' to the firm are carving out a resolution plan and a final plan is expected to be out by July 25. Moreover, the company expects to restart its business by August 2019 and grow it over the coming months, said DHFL in a notification to the stock exchange.

For the quarter ended March, the company reported a loss of Rs. 2223 crore. Its gross non-performing asset ratio also increased to 2.74% in comparison to 0.96% for the corresponding period a year ago.

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