Debt-ridden mortgage lender Dewan Housing Finance Corporation Ltd (DHFL), which is also facing a corporate insolvency resolution process, on Thursday reported a standalone net profit of Rs 9.34 billion in the third quarter of fiscal 2020 as against a loss of Rs 67.05 billion in the same period last year.

Total revenue from operations in Q3FY20 stood at Rs 24.32 billion, while total expenses came in at Rs 26.05 billion.

Undergoing insolvency process within the Insolvency and Bankruptcy Code, the company has not provided for interest amount of Rs 5.28 billion on borrowings since insolvency commencement date (December 3, 2019) based on the opinion from legal advisors.

Under the IBC, 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.

If the interest was accrued on borrowings, the profit for the quarter and nine months would have been lower by Rs 392.39 crore, the company said.

The company is undergoing substantial financial stress since the second half of the previous financial year.