Reliance Home Finance Q1 results: Reports net loss of Rs 161 crore

NEW DELHI: Reliance Home Finance on Friday reported a net loss of Rs 161.34 crore during the first quarter of 2020-21 due to a fall in interest income.

The Reliance Capital subsidiary had posted a net profit of Rs 48.63 crore in the same quarter of the previous fiscal year.

However, the net loss for the quarter was lower than Rs 238.37 crore reported for the March 2020 quarter.

The company's total income fell to Rs 244.59 crore in the April-June period of 2020-21 from Rs 536.98 crore in the same period of 2019-20. Interest income dropped to Rs 242.98 crore in the first quarter from Rs 525.23 crore in the year-ago quarter.

Expenses rose to Rs 489.04 crore in April-June 2020-21 as against Rs 466.68 crore in the year-ago quarter, it said in a regulatory filing.

The company which is mainly engaged in the housing finance business said that it is in the process of increasing the housing loan portfolio and is "confident of achieving the same in due course".

The company has cash on hand of approximately Rs 800 crore in the form of investment in unencumbered liquid mutual funds as on June 30, 2020.

"However, the delay in debt servicing is due to prohibition on the company to dispose off, alienate, encumber either directly or indirectly or otherwise part with the High Court in the matter...The Company has engaged with all its lenders for arriving at the debt resolution plan," it said.

In this regard, the lenders have entered into an Inter-Creditor Agreement (ICA) for resolution of stressed assets, it said further.

Reliance Home Finance shares closed at Rs 2.08 apiece on BSE, down 4.59 per cent from the previous close.