Dewan Housing Finance Corporation (DHFL) has reported a pre-tax profit of Rs 92.81 crore in the quarter ended June 2020 (Q1FY21), against a loss of Rs 198.85 crore in the year-ago period.
Its net for the period came in at Rs 70 crore, against a loss of Rs 206 crore.Its total income for the period stood at Rs 2,328.86 crore, compared to Rs 2,399.87 crore in the corresponding period last financial year.
It has said that almost 28 per cent of its book is under moratorium as of June 30.
The firm, being managed by the administrator — R Subramaniakumar has said the recovery will further improve in moratorium accounts during the current quarter (Q2 FY21). Further, the extent to which the Covid-19 pandemic will impact the company’s financial performance is dependent on future developments, which are uncertain.
The auditors of the company have said the company has accumulated losses exceeding the share capital and reserves and its net worth has been fully eroded; and it is now under Corporate Insolvency Resolution Process (CIRP).
“These conditions indicate the existence of a material uncertainty that may cast significant doubt about the company’s ability to continue as a going concern. The company’s ability to remain as a “going concern” depends upon outcome of the ongoing CIRP and we are unable to ton whether the Company will be able to continue as going concern”, they added.