Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusiness

Jain Irrigation says not defaulted on debt obligation; confident of reducing debt by 2,000 crore

Each of the company's business in India and overseas has created enormous intrinsic value.

June 13, 2019 / 02:59 PM IST

Asserting that the company has not defaulted on any of its debt obligations, Jain Irrigation on June 13 said it was confident of executing its plan to bring down its debt by Rs 2,000 crore through corporate action.

The Jalgoan-based company has a debt equity ratio of 1:1.1 and networth of Rs 4,561 crore including Compulsory Convertible Debenture (CCD), it said in a regulatory filing.

"To address the unsubstantiated rumours in the market and queries from various investor groups, we wish to state: the company has not defaulted on any of its debt obligations," Jain Irrigation said.

Post board meeting on May 30, the company had intimated its decision to reduce the debt by Rs 2,000 crore through corporate action.

"Company is confident of executing on these plans," Jain Irrigation said adding that all operations of the company are ongoing.

As on April 1st, the company had more than Rs 5,000 crore worth of orders in hand. It has total 33 manufacturing plants worldwide and 12,000 associates, it added.

Stating that the company is "growth oriented, profit making and dividend paying entity", Jain Irrigation said its net profit stood at Rs 239 crore and revenues at about Rs 8,600 crore during the 2018-19 fiscal.

The company's adjusted EBIDTA was around Rs 1,250 crore after adjusting for one-time costs and forex/ translation costs, it said.

"This was achieved despite slowdown in rural economy, inadequate monsoon, farmer distress and (food) raw material price deflation and a year with disruption caused by major state elections and general election," it added.

The company said it has built high quality businesses with significant future potential which are very relevant to society and marketplace.

"We have pioneered products and solutions which are addressing urgent issues of water security, food security, climate change, farmer prosperity and agricultural productivity," Jain Irrigation said.

Each of the company's business in India and overseas has created enormous intrinsic value. The company's management is committed to continue to work diligently to significantly enhance stakeholder value while fulfilling it's mission

Jain Irrigation is into manufacturing of micro-irrigation systems, PVC and HDPE pipes, plastic sheets, agro-processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs.

The shares of the company was trading down by 0.26 percent at Rs 37.75 a piece on the BSE at 1212 hours.

PTI
first published: Jun 13, 2019 12:45 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347