DHFL posts net profit of Rs 934 crore in Q3 FY20
Debt-ridden mortgage lender Dewan Housing Finance Corporation Ltd (DHFL) on Thursday reported a standalone net profit of Rs 934 crore in the third quarter of current financial year as against a loss of Rs 6,705 crore in the same period of previous fiscal.
The company undergoing insolvency proceedings also posted total revenue from operations in Q3 FY20 at Rs 2,432 crore while total expenses were Rs 2,605 crore.
However, the results do not provide a fair picture as DHFL is under moratorium as per insolvency rules and has not paid interest on borrowings.
“The company has not provided for interest amount of Rs 527 crore on borrowings since insolvency commencement date (that is December 3, 2019) based on the opinion from legal advisers,” it said in a statement.
Under the Insolvency and Bankruptcy Code 2016, the treatment of creditors under the resolution plan is as per debts due as on the insolvency commencement date and therefore no interest is accrued and payable after this date.