25 January 2019 Dewan Housings (DEWH) PAT declined 37% YoY to INR3.2b (18% below estimate) in 3QFY19. Over the past quarter, the company focused on liquidity management, while growth took a backseat. It raised INR163b of borrowings, largely from portfolio sell-downs. Due to curtailed disbursements, AUM declined 3% QoQ to INR1.27t. Management reiterated its priority to reduce the builder loan portfolio share to 5% of AUM by end-FY19. Management targets to infuse INR20b of equity capital by March 2019 by means including stake sale in non-core assets. Gross Stage 3 loans increased 16bp QoQ to 1.12%. DEWH is a focused play on low-ticket housing. While the company had been gaining traction in core affordable housing loans, it opportunistically diversified into non-retail loans over the past few years. However, this is expected to normalize and DEWH is likely to focus on its core strength of being a low-ticket affordable housing financier.