Download to read offline
Turn around Bulls and Bears(bankruptcy of DHFL).pptx
- 1.
- 2. DHFL Established in 1984,DHFL was a leading housing finance NBFC. Focused on providing home loans to low- and middle-income groups. Stock was listed in 2002, All Time High was 680 in 2018 Revenue was peaked 10000 crs in 2018 and went bankrupt on 2019 Bankrupt on December 2019 on because of fraud, mismanagement debt, Defaulters 01
- 3. 02 Financial Analysis Declining Revenue & Profitability Unsustainable CostStructure High Leverage & Weak Solvency Negative Net Profit Margin & ROA Revenue 2019 (- 45.49%) and 2024 (0.91%) PAT 2023 (-1512.24%) and 2024 (-74.26%) High COGS, Negative Margins, Cost Inefficiency 63.53% in 2019 High Debt 0.59 in 2021 to 0.84 in 2024, Financial Instability, Insolvency Risk 2.19 in 2019, -2.71 in 2023 Poor ROI, Negative Profitability, Asset Inefficiency -146.02% in 2019, -112% in 2023, -28.57% in 2024
- 4. DEBT RESTRUCTURING & IBCPROCESS 03 OPERATIONAL & GOVERNANCE IMPROVEMENTS BUSINESS MODELREVAMP IBC resolution allowed Piramal Group to merge DHFL with its finance arm.Lenders recovered 46% of total dues (~₹40,000 crore) Strengthened risk controls to avoid fraudulent lending. Tighter regulations from RBI to monitor NBFC liquidity Focused on low-risk, high-margin lending. Improved capital adequacy & asset-liability matching.
- 5.