DHFL hits 52 week low

The housing finance company DHFL on Monday hit the low of Rs. 46.70 per share as the company reported a net loss of Rs. 2,223 for the March quarter along with management's comments that it is undergoing substantial financial stress.

The AUM for FY19 was at Rs. 1,19,992 crore as against Rs. 1,11,318 crore in the previous year. During Q4FY19, DHFL made provision of Rs. 3,280 crore (net loss on fair value), consequently the company reported net loss of Rs. 2,223 for the quarter ended on March 2019.

The company in its exchange filing said that due to sharp 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.

In the recent times, the credit rating agencies have downgraded DHFL's debt instruments to default grade which has hammered the company's ability to raise funds which in turn halted the disbursements.

While clarifying doubts, on Monday, the company informed the exchange that DHFL remains a strong going entity and it is closely working with the stakeholders/creditors to ensure that there is a comprehensive resolution, without any hair cut to the lenders. The company's management further said that it has managed to make repayments of over Rs. 41,800 crore primarily through securitisation of assets and repayment collections.

The stock of DHFL has eroded the investors' wealth as it tumbled nearly 93 per cent from the peak of Rs. 670 seen in August 2018.