Dewan Housing Finance Ltd has reported a standalone net profit of Rs 312 crore in the fourth quarter ended March 31, 2018, against Rs 2,218 crore in the year-ago period. In the year-ago period, the housing finance company had a one-time exceptional gain of Rs 1,969 crore due to sale of its 50 per cent stake in DHFL Pramerica Life Insurance Company, to its wholly-owned subsidiary DHFL Investments Ltd.
DHFL’s board of directors has recommended final dividend of Rs 2.50 per equity share to its equity shareholders. During the year, the company has paid interim dividend of Rs 3 per share. In FY 2018, DHFL recorded a standalone net profit of Rs 1,172 crore, against Rs 2,896 crore in FY2017.
In the reporting quarter, revenue from operations increased by 18 per cent year-on-year to Rs 2,802 crore. Finance costs were up 13 per cent yoy at Rs 1,980 crore. Other expenses rose 29 per cent yoy to Rs 240 crore. Employee benefit expenses jumped 52 per cent yoy to Rs 100 crore.
Loans sanctioned during the year ended March 31, 2018 amounted to Rs 65,936 crore as against Rs 39,846 crore in the previous year, showing an increase of 66 per cent. Disbursements during the year ended March 31, 2018 amounted to Rs 44,800 crore as against Rs 28,582 crore during the previous year, registering a growth of 57 per cent.
Assets under management (AUM) grew 33 per cent yoy to Rs 1,11,086 crore for the year ended March 31, 2018. As of March-end 2018, gross non-performing assets stood at 0.96 per cent of gross advances, against 0.94 per cent as of March-end 2017. As of March-end 2018, the net interest margin improved to 3.04 per cent per cent against 2.99 per cent as of March-end 2017.
Board approves Rs 15,000-cr NCD issue
The DHFL board on Monday also approved a proposal to raise up to Rs 15,000 crore (including green shoe option) via public issue of secured redeemable non-convertible debentures (NCDs) of face value Rs. 1,000 each. This NCD issuance, which will be in one or more tranches, is subject to the receipt of necessary approvals.
The NCDs are proposed to be listed on the National Stock Exchange of India and/ or BSE Ltd or any other stock exchange as may be decided by the NCD Public Issue Committee, which has been constituted by the board, and/or the board of directors.
The board also approved the issuance of non-convertible secured redeemable debentures up to an amount of Rs 5,000 crore and non-convertible perpetual unsecured debentures up to an amount of Rs 500 crore, both on private placement basis, depending upon the prevailing market conditions and on the business requirements of the company for the quarter and till the date of the next board meeting.