DHFL Reiterates On-time Fulfillment Of All Financial Commitments

Mumbai, September 24, 2018: DHFL, one of India’s leading housing finance company, today reiterated that the company has neither defaulted on any bonds or repayment of its financial obligations, nor has there been any instance of delay on any repayment of any liability. On September 21, 2018, DHFL fulfilled its commitment of repaying commercial papers worth INR 575 crore and as per schedule and terms, is repaying INR 400 crore on September 24, 2018.

DHFL has also received RE-AFFIRMATION of credit ratings from CARE and ICRA.  The credit rating for DHFL’s short and long term borrowings including Fixed Deposits has been reaffirmed as CARE AAA (Outlook:  Stable) and CARE AAA (FD); Stable (Triple AAA, Outlook: Stable) and ICRA A1+, indicating a very strong degree of safety regarding timely payment of the Company’s financial obligations.

Mr. Kapil Wadhawan, Chairman and Managing Director, DHFL said, “The reiteration by CARE and ICRA on the high degree of safety of DHFL’s bonds and the organisation’s total commitment to its financial obligations, come at a very critical time. Over the past three decades, DHFL has been playing an increasingly transformative role in nation building by expanding home ownership and financial inclusion, transforming the lives of millions of Indian in the LMI and EWS segments.

Aligned to a high growth outlook, DHFL has ensured that the Company’s business fundamentals are strong. DHFL’s Assets Under Management (AUM) has been growing at a CAGR of 26.4% and with a YOY growth of 37%, reporting INR 1,20,939.5 crore as on 30th June 2018 from INR 88,235.7 crore as on June 30, 2017. DHFL continues to expand its loan growth disbursements in the affordable housing segment which were INR 13,582.9 crore for the quarter ended June 30, 2018, demonstrating a 65% increase over the corresponding quarter of the previous year.”

He also added, “DHFL’s aggressive growth over the last few years have been also reflected in CARE AAA (Triple A) credit rating, and DHFL has also been assigned BWR AAA by Brickworks Ratings. Backed by very robust financial performance, DHFL holds strong liquidity of approx. INR.10,000 crore in the system to serve all its commitments and liabilities.”

Key facts:

  • DHFL’s CP shall be ~6% of our total borrowings and the total assets and liability book is over INR 1 Lakh crore. The company remains cash surplus even after considering repayment of all liabilities on account of CP, NCD, interest payment, bank dues, etc. till March 2019.
  • The Company is extremely well-matched in case of the ALM position.
  • DHFL’s borrowing is well diversified with a banking consortium of 31 banks, NCDs, CPs, ECB and masala bonds. DHFL is one of the leading deposit taking HFCs.
  • Promoters of DHFL have not pledged any shares nor have they availed any loan against shares of DHFL.
  • Considering that two-thirds of DHFL’s home loan portfolio is retail home loans wherein DHFL’s average home loan ticket size is below 16.1 lakhs, DHFL has always endeavoured to protect the margins at 300 to 305 bps.
  • DHFL maintains strong asset quality and registered lowest NPAs in the industry. Reported Gross Stage 3 Loan Assets (equivalent to Gross NPA %) at 0.93%.
  • DHFL has launched 3 successful NCDs that demonstrate testimony of the Company’s investor’s trust in the organization.
  • DHFL’s committed efforts towards driving financial inclusion have translated into a net profit growth of 35% to INR 435.0 crore for the quarter ended June 30, 2018.
  • Profit before tax rose by 43% to INR 638.2 crore for the quarter ended June 30, 2018.
  • Loan book outstanding grew 32% to INR 1,00,980.44 crore during the quarter ended June 30, 2018.
  • Considering that two-thirds of DHFL’s home loan portfolio is retail home loans wherein DHFL’s average home loan ticket size is below INR 16.1 lakhs, DHFL has always endeavoured to protect margins at 300 to 305 bps.

DHFL was founded in 1984 by Late Shri Rajesh Kumar Wadhawan, with a vision to provide financial accessibility to lower and middle income customer segments among semi-urban and rural populace in India. Led by Mr. Kapil Wadhawan, Chairman and Managing Director, DHFL is one of the leading housing finance companies in India with a large network across the country that caters to millions of customers in the LMI category.

Over the last 34 years, DHFL has provided customers with a vast array of home loan products including loans on homes, residential plots, construction, LAP or loan against property as also mortgage, non-residential and project loans. The company’s wide network, deep understanding of customer needs gathered over time, enables DHFL to offer customised financial access to LMI customers in India’s smallest towns. With strong business fundamentals and proven industry expertise, DHFL is a highly respected and trusted financial services company with a concerted focus towards enabling home ownership to the LMI customer segment in India. DHFL’s CSR efforts are an integral part of the Company’s ethos, fulfilling critical societal needs through Economic Empowerment through Financial Literacy, Skill Development, Rural Development with focus on Drought Mitigation and Early Childhood Care and Education (ECCE), implemented with measurable outcomes. DHFL also has representative offices in Dubai, London and the UAE.

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