Mortgage lender Dewan Housing Finance Corporation (DHFL) narrowed its net loss in the September quarter (Q2) to Rs 2,123 crore, against Rs 6,641-crore net loss in the corresponding quarter in the earlier year. While the interest revenue in Q2 elevated 3% year-on-year (y-o-y) to Rs 2,190 crore, total costs saw a huge decline of 49% y-o-y to Rs 4,972 crore. The organization stated that 29% of account holders by quantity had availed moratorium as on August 31, 2020.
The Reserve Bank of India (RBI) had earlier granted six months moratorium to borrowers from March 1, 2020.
“The recovery from accounts in moratorium is forthcoming with gradual implementation of unlock and commencement of field visits,” DHFL stated in its notes to accounts. “Monthly instalment from almost 76% moratorium customers was collected in September, 2020, being first month after moratorium, it is believed that recovery will further improve in moratorium accounts during forthcoming months of financial year 2020-21.”
DHFL’s total revenue elevated 4.3% y-o-y, but declined 5.4% quarter-on quarter (q-o-q) to Rs 2,328 crore. Other revenue fell 85.3% y-o-y and 73.6% sequentially to Rs 109 crore.
Total assets of the organization stood at Rs 83,638 crore at the finish of the September quarter, compared to Rs 85,927 crore in the March quarter. Total liabilities stood at Rs 91,250 crore in Q2, as against Rs 91,326 crore in Q1.
DHFL also stated that the organization is operating as a going concern as per provisions of the code, which needs that the worth of the organization is preserved and retain it as a going concern. “Further various bidders have expressed interest and submitted a resolution plan for the company which itself is an indicator of company will be running as ‘going concern’ in future as well,” it additional stated.
Lenders had earlier shortlisted 22 applicants for the organization, which had been additional narrowed down to 4 bidders. Committee of creditors (CoC) on Tuesday resolved to invite fresh round of bids, without having opening bids in the third round.
Oaktree Capital, Piramal Enterprises, Adani Properties and SC Lowy had earlier submitted bids in the second round on November 9. DHFL has been undergoing insolvency proceedings at the National Company Law Tribunal in Mumbai considering that December 3, 2019. The admitted claims of economic creditors from DHFL stood at Rs 87,120 crore as on September 10.